Which of the Following Would Be Considered a Risk-Free Investment

question 79

Multiple Choice

Which of the following would be considered a risk-free investment?

• A) U.S. Treasury securities
• B) blue chip stocks
• C) AAA rated corporate bonds
• D) real estate

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Definitions:

Liability Account

An accounting record that represents a company's legal debts or obligations that arise during business operations.

Cash Basis

An accounting method where revenue and expenses are recognized only when cash is exchanged.

Accounts Receivable

Funds that customers owe to a business for products or services they have received but have not yet paid for.

Uncollectible Accounts

Uncollectible Accounts are receivables that a company does not expect to collect and are thus written off as an expense for bad debts.