Which of the Following Would Likely Be the Best Comparable

question 64

Multiple Choice

Which of the following would likely be the best comparable to use to value an investment in the stock of General Motors Corporation?

• A)an investment in a long-term U.S. government Treasury bond
• B)an investment in a bond issue of General Motors Corporation
• C)an investment in the stock of Ford Motor Company
• D)an investment in an 500 index mutual fund

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Definitions:

Entire Group

This term signifies the collective entirety of a set of items, individuals, or entities being considered as a whole.

Account

A record summarizing all transactions related to a particular item or person in financial accounting.

Owner's Equity

The residual interest or ownership claim in a firm's assets after subtracting liabilities, representing what the owners have invested or retained from net income.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, ensuring they are equal.