Over the Long Term, Which One of the Following Has

question 69

Multiple Choice

Over the long term, which one of the following has historically had the lowest average annual rate of return?

• A) Long- term corporate bonds.
• B) Small- company stocks.
• C) Long- term government bonds.
• D) Large- company stocks.

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Definitions:

Comparative Balance Sheet

A financial statement presenting the assets, liabilities, and equity of an entity at two or more points in time to facilitate comparative analysis.

Direct Method

An approach to preparing the cash flow statement where actual cash flow information from the company's operations is used directly.

Prepaid Expense

Expenditures paid for in advance for goods or services to be received in the future, often including insurance premiums or rent.

Accounts Payable

Obligations or debts a company owes to its suppliers or vendors for products or services received.