Financial assets include various types of assets such as short-term investments in securities, receivables, and cash. They are reported at fair market value or amortized cost on the balance sheet. It is important for a well-managed company to have an appropriate balance of financial assets to support its operations and growth.

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Financial Assets

Question 41

Multiple Choice

Financial assets:

A) Consist of cash and cash equivalents.
B) Are reported at cost in the balance sheet.
C) Include short-term investments in securities and receivables, as well as cash.
D) Are not very productive assets and should be kept to a minimum in a well-managed company.

Correct Answer: