Short-Term Investments Have an Original Cost of $29,000 and a Market

question 95

Multiple Choice

Short-term investments have an original cost of $29,000 and a market price of $31,000 at December 31, 2010. At what amount would the investments be measured on the December 31, 2010 balance sheet?

• A) $29,000
• B) $31,000
• C) ($2,000)
• D) $2,000

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Definitions:

Maturity Stage

The maturity stage is a phase in the product life cycle characterized by a slowdown in sales growth, as the product has achieved wide acceptance in the market and faces increased competition.

Windows Operating System

A series of graphical interface operating systems developed, marketed, and sold by Microsoft.

Repositions

The process of changing the market position of a product, including altering its image or target consumer.

Beta Testing

A phase of product testing where a sample of the intended audience tries the product in real-world conditions to identify bugs or issues before the full-scale release.