On the Balance Sheet, Available-For-Sale Investments in Stock Are Reported

question 52

Multiple Choice

On the balance sheet, Available-for-sale investments in stock are reported at:

• A) their cost.
• B) the lower-of-cost-or-market.
• C) their amortized cost.
• D) their current market value.

---

Definitions:

Sales

The total amount of a company's revenues generated from the sale of goods or services.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment in its core business or to pay debt.

Internal Growth Rate

The internal growth rate is the maximum rate at which a company can expand its operations through reinvestment of its own earnings, without raising external financing.

Dividend Payout Ratio

The percentage of a company's net earnings distributed to its shareholders as dividends.