Which of the Following Types of Assets Is Least Risky

question 39

Multiple Choice

Which of the following types of assets is least risky?

• A)Short-term corporate bonds
• B)Long-term corporate bonds.
• C)Stocks.
• D)Options and futures.

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Definitions:

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment to improve its long-term operations and growth.

Cash Dividends

A portion of a company's earnings distributed to shareholders in the form of cash.

Direct Method

A way of preparing the cash flow statement where actual cash flow information from the company’s operations is directly reported.

Accounts Receivable

The amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.