Dividends That Are Declared at Year-End but Not Received on Investments

question 80

Multiple Choice

Dividends that are declared at year-end but not received on investments in securities held for sale or trading should be recognized when

• A)received as cash
• B)the new year begins
• C)declared
• D)accrued

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Definitions:

Expected Rate

Anticipated return on an investment, often based on historical data or the inherent risk of the investment.

Dollar-weighted Return

This type of return measures the performance of an investment, taking into account the timing and magnitude of inflows and outflows of money.

Time Period

The duration or length of time for which an investment, project, data collection, or any specified activity lasts.

VaR

Value at Risk, a statistical measure used to assess the level of financial risk within a firm, portfolio, or position over a specific time frame.