US Government Bonds Are Considered a Secure Investment Because

question 311

Multiple Choice

U.S. government bonds are considered a secure investment because

• A) the interest rates are protected from inflation and tied to the consumer price index.
• B) they are backed by the full faith and credit of the federal government.
• C) the interest rates are higher than for corporate bonds of equal duration.
• D) if they are lost or stolen the federal government promises to replace them when the proof of purchase is provided.

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The cost of consumable items used in the operation of a business, recorded as an expense during the period in which they are consumed.

Adjusted Trial Balance

A trial balance that has been adjusted for any journal entries or corrections, ensuring the accuracy of financial statements.

Net Income

Net income of the company, which is what remains after deducting taxes, expenses, and other costs from its total revenue.

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In finance and business, a period refers to a specific duration of time considered for accounting, reporting, or evaluation purposes.