Refer to the Accompanying Table of Information for the Moolah

question 213

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Reserves } & \$ 100 \\\hline \text { Checkable Deposits } & 1,000 \\\hline \text { Loans (to customers) } & 300 \\\hline \text { Property } & 400 \\\hline \text { Securities (owned) } & 300 \\\hline \text { Stock Shares } & 100 \\\hline\end{array}$$ Refer to the accompanying table of information for the Moolah Bank. Assume that the listed amounts constitute this bank's complete set of accounts. Moolah's

• A) assets are $1,000.
• B) liabilities are $1,000.
• C) net worth is zero.
• D) pro?t is $1,000.

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Definitions:

Year End

The end of a fiscal year when a company completes its accounting period and financial statements are prepared.

Non-Strategic Investments

Investments made by a company in assets or other companies that are not central to its main line of business or long-term objectives.

Purchase Cost

The total amount paid to acquire an asset, including any additional charges necessary to bring it to its intended use.

Strategic Investments

Investments made by a company to pursue long-term objectives, such as acquiring stakes in other companies or funding new product development.