Short-Term U.S. Government Bonds Are Considered to Be Risk-Free

question 158

True/False

Short-term U.S. government bonds are considered to be risk-free.

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Definitions:

Customers

Individuals or entities that purchase goods or services from a business.

Indirect Method

A method used in the Statement of Cash Flows to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.

Net Cash

The remaining amount of cash after all cash expenses have been paid, reflecting a company's true liquidity position.

Decrease in Inventory

A reduction in the quantity or value of inventory, which can indicate higher sales or issues in supply chain and production.