Only the Strongest,most Stable and Safe-Return Companies Can Be Called

question 119

Multiple Choice

Only the strongest,most stable and safe-return companies can be called

• A) blue chip stocks.
• B) growth companies.
• C) income stocks.
• D) defensive stocks.
• E) cyclical stocks.

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Definitions:

Inventory Holding Gains

Inventory holding gains are the increases in value of inventory the company holds due to price increases, not yet realized through sales.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, usually when the company is unable to meet its financial obligations.

LIFO

Last In, First Out, an inventory accounting method where the last items added to inventory are the first ones to be used or sold, affecting cost of goods sold and inventory valuation.

Replacement Cost

The cost to replace an asset with another of similar nature and quality in its current condition.