All of the Following Would Be Considered Relatively Low-Risk Investments

question 73

Multiple Choice

All of the following would be considered relatively low-risk investments EXCEPT which one?

• A) blue-chip stocks
• B) highly rated municipal bonds
• C) guaranteed investment certificate
• D) antiques and collectibles

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Definitions:

Amortization

The gradual reduction of the book value of an intangible asset or the paying down of a debt over a fixed period of time.

Consolidation Worksheet

An accounting tool used to combine the financial statements of a parent company and its subsidiaries, enabling the preparation of consolidated financial statements.

Initial Value Method

A method of investment accounting where the investment is initially recorded at cost, without subsequent adjustments for changes in fair value.

Equity Income

Income earned from investments in shares of companies, often received as dividends, indicating profit participation in these companies.