3-88 the Largest Asset on Property-Casualty Insurers' Balance Sheet as of Year-End

question 2

Multiple Choice

3-88 The largest asset on property-casualty insurers' balance sheet as of year-end 2009 was

• A)cash.
• B)bonds.
• C)common stock.
• D)short-term securities.
• E)mortgages and mortgage-backed investments.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders possibly entitled to dividends and voting rights.

Cumulative Preferred Stock

A type of preferred stock that accrues dividends in case they are not paid as scheduled, ensuring that dividends are paid out before any dividends can be issued to common stock shareholders.

Dividends Per Share

The total amount of dividends declared by a company for each share of stock held.

Fiscal Year

A one-year period used for financial reporting and budgeting that may not align with the calendar year.