1) All share purchases are initially recorded at cost.
2) Short-term investments are reported on the balance sheet at current market value or cost, whichever value is highest.
3) All short-term investments are recorded initially at cost, but are reported on the balance sheet at current market value.
4) Investment in bonds is typically a long-term investment.
5) Long-term investments may be of several different types , depending on the purpose of the investment and thus the percentage of voting interest acquired.
6) Equity investments reported at market value on the balance sheet can be either short-term investments or long-term investments.
7) Dividends do not accrue through the passage of time.
8) If a dividend is declared but not yet paid for an investment in shares owned at year end, the company may accrue dividend revenue.
9) Receipt of a stock dividend is not revenue to the investor.
10) Receipt of a stock dividend increases the number of shares held by the investor.