All of the Following Are Conditions That Could Affect the Valuation

question 42

Multiple Choice

All of the following are conditions that could affect the valuation of investments on the balance sheet except

• A)changes in the general purchasing power of the dollar.
• B)changes in the operations of investee companies.
• C)changes in the market value or fair value of the investments.
• D)changes caused by the passage of time.

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Definitions:

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, based on the number of shares they own.

Report Income

The act of documenting and declaring earned income within a specific period for tax and accounting purposes.

Cash Surrender Value

The amount of cash that an insurance policyholder can receive upon cancelling the policy before its maturity or an insured event occurs.

Insurance Policy

A contract between an insurance policyholder and an insurer, outlining the claims which the insurer is legally required to pay in exchange for an initial payment, known as a premium.