Which of the Following Is a Possible Disadvantage of Real

question 117

Multiple Choice

Which of the following is a possible disadvantage of real estate investments?

• A)Lack of involvement in property maintenance
• B)Hedge against inflation
• C)Illiquidity
• D)Lack of financial risk
• E)Easy entry

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Definitions:

Closing Entries

Accounting journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made and posted to the ledger, reflecting the company's financial position more accurately.

Owner's Capital

The total equity claimed by the owner of a sole proprietorship or partnership, reflecting the residual assets of the business after liabilities.

Income Summary

An account in which the revenues and expenses are transferred at the end of an accounting period to determine the net income or loss.