Financial assets:

1.Consist of cash and cash equivalents.2.Are reported at cost in the balance sheet.3.Include short-term investments in marketable securities and receivables, as well as cash.4.Are not very productive assets and should be kept to a minimum in a well-managed company.

With a line of credit, a liability arises: 1.As soon as the line is created. 2.As soon as any money is borrowed. 3.Upon repayment of the debt. 4.At the maturity date.

An Unrealized Holding Gain (or Loss) on Investments classified as "available-for-sale" securities: 1.Is reported in the asset section of the balance sheet, as an adjustment to the carrying value of the marketable securities. 2.Is reported in the stockholders' equity section of the balance sheet, as either an increase or decrease in total stockholders' equity. 3.Appears in the current period income statement, combined with realized gains and losses from sales of securities. 4.Indicates the amount of cash a company would receive if the marketable securities were sold as of the balance sheet date.

Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as worthless an account receivable from Burton Company of $1,300. The net realizable value of the accounts receivable before and after the write-off were: 1.$290,500 before and $289,200 after. 2.$290,500 before and $290,500 after. 3.$310,000 before and $308,700 after. 4.$329,500 before and $328,200 after.