Choose the One Most Appropriate Answer for Each

question 48

Multiple Choice

Choose the one most appropriate answer for each.
-the possibility that an investor will lose his money in an investment

• A)accelerated depreciation
• B)active investor
• C)appreciation
• D)at-risk rules
• E)blind pool
• F)cash flow
• G)cash-on-cash
• H)downside risk
• I)equity build-up
• J)GLITAMAD
• K)investment strategy
• L)leverage
• M)master limited partnership
• N)negative cash flow
• O)negative leverage
• P)non-recourse financing
• Q)passive investor
• R)prospectus
• S)straight-line depreciation
• T)tax shelter

---

Definitions:

Earned

Income or revenue that has been generated from business activities or services provided.

Cash

Money in the form of coins or banknotes, especially that used to operate a business.

Cash Basis

An accounting method whereby revenues and expenses are recorded when cash is received or paid, rather than when they are incurred.

Accounting

The process of recording, classifying, summarizing, and interpreting financial transactions to provide information that is useful in making business decisions.