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$50,000
$100,000
8Multiple Choice Question 138
Which of the following reasons best explains why a company that
experiences seasonal fluctuations in sales may purchase investments
in debt or stock securities?
The company may have excess cash.
The company may invest for speculative reasons to increase the value
in pension funds.
The company may generate a significant portion of its earnings from
investment income.
The company may invest for the strategic reason of establishing a
presence in a related industry.
9Multiple Choice Question 115
The balance sheet presentation of an unrealized loss on a non-trading
security is similar to the statement presentation of
treasury stock.
discount on bonds payable.
prepaid expenses.
allowance for doubtful accounts.
10-