Figure 131 in Your Textbook Compares the Returns on Various Investments

question 77

Multiple Choice

Figure 13.1 in your textbook compares the returns on various investments over the period 1951-2010.Which of the following is shown to exceed the inflation rate by the widest margin?

• A)Common stocks
• B)Government bonds
• C)Treasury bills
• D)Mutual funds

---

Definitions:

LIFO Inventory Method

An inventory costing method that assumes the last items put into inventory are the first ones taken out, used in calculating cost of goods sold.

Gross Profit

The difference between total sales revenue and the cost of goods sold, before deducting overheads, salaries, and other expenses.

Raw Materials Inventories

Represents the stock of basic inputs that have not yet been used in the manufacturing process.

Manufacturer

A business or company engaged in the production of goods for sale, using labor, machines, tools, and chemical or biological processing or formulation.