Money market account balances, stocks, and bonds are examples of which asset category?

• A. Accounts receivable
• B. Investments
• C. Intangible assets
• D. Prepaid expenses

Answer: (B)

Investments are assets held primarily to earn a return, such as cash equivalents and marketable securities. Money market account balances function like highly liquid cash equivalents, while stocks and bonds are classic investment securities you buy to receive interest, dividends, or price appreciation. This category contrasts with accounts receivable (amounts owed by customers), prepaid expenses (payments made in advance for future services or goods), and intangible assets (non-physical assets like patents or goodwill). So, money market balances, stocks, and bonds fit the investment category because their purpose is to generate financial return rather than to be used up in day-to-day operations.