Suppose You Own $175,000 Worth of Personal Property,$15,000 in U

question 272

Multiple Choice

Suppose you own $175,000 worth of personal property,$15,000 in U.S.government bonds;a $20,000 savings account,a $50,000 CD,and $5,000 of California Edison stock.If California Edison goes bankrupt,the most you could lose is

• A)$5,000.
• B)$75,000.
• C)$90,000.
• D)$265,000.

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Definitions:

Financing Activities

Transactions and events where a business either raises funds from financial markets or repays funds previously raised; includes issuance or repurchase of equity and debt.

Cash Flow Statement

The cash flow statement is a financial document that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Dividends

A portion of a company's earnings that is paid to shareholders as a distribution of profits.

Balance Sheet

A report detailing a firm's assets, liabilities, and owners' equity at a certain moment.