Which of the Following Is Not Common to All Investments

question 277

Multiple Choice

Which of the following is not common to all investments?

• A) Investors are required to pay some price to acquire them.
• B) Owners are given the opportunity to receive future payments.
• C) Future payments are typically risky.
• D) The investment pays a positive rate of interest.

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Definitions:

Investing Activities

Transactions and events that involve the purchase and sale of long-term assets and other investments not generally considered cash equivalents.

Capital to Purchase Fixed Assets

Financial resources allocated for the purchase of long-term physical assets that a company uses in its operations.

Cash Flow Statement

A financial document providing comprehensive detail about a company's cash inflows and outflows over a specified period.

Noncash Asset

Assets owned by a business not in the form of cash but may be converted into cash within a year, such as inventory and property.