In Which of the Following Financial Assets Did U

question 81

Multiple Choice

In which of the following financial assets did U.S. households have the most invested in 2006?

• A)U.S. government securities
• B)Corporate bonds
• C)Corporate equities
• D)State and local government securities

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Definitions:

Closing Entry Process

The procedure at the end of an accounting period to prepare the accounts for the next period by clearing out revenues and expenses into the Retained Earnings account.

Temporary Accounts

Accounts used to collect information during a single accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

Accounts that carry their ending balances over into the next accounting period; these include asset, liability, and equity accounts.

Prepaid Rent

Prepaid Rent represents payments made in advance for rent, which is recorded as an asset on the balance sheet and expensed over time as it is used.