Which of the Following Are Commonly Thought to Be Bad

question 57

Multiple Choice

Which of the following are commonly thought to be bad general investment guidelines? I) Don't try to outguess the market, buying and holding generally pays off.
III. Investments should be highly concentrated in your company's stock.
IV. 401K money is best placed in money market accounts because risk is very low.
V. Investments should be allocated to stocks, bonds, and money-market funds.

• A)I, III, and IV
• B)I, II, and IV
• C)II, IV, and V
• D)III and IV

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Definitions:

Inventory Purchase

The acquisition of goods and materials that a company holds for the purpose of resale or production.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, providing a constant update of inventory levels.

FOB Shipping Point

is a term used in shipping, where the buyer becomes responsible for goods once they are shipped, and must pay for the transport costs.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous transactions, often due to a return or refund.