Checking Deposits Generally Have a _____ Return on Investment Than

question 79

Multiple Choice

Checking deposits generally have a _____ return on investment than do certificates of deposit because checking deposits are _____.

• A) higher; less liquid
• B) higher; more liquid
• C) lower; less liquid
• D) lower; more liquid

---

Definitions:

Depreciable Assets

Assets subject to wear and tear or obsolescence, which are systematically decreased in value over their useful life for accounting purposes.

Alternative Depreciation Method

A depreciation method different from the straight-line depreciation, allowing for a higher depreciation charge in the earlier years of an asset's life.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's economic benefits.

Financial Statement

A written record detailing the financial activities and condition of a business or entity, including balance sheets, income statements, and statements of cash flows.