Long-Term Bonds Are Generally

question 51

Multiple Choice

Long-term bonds are generally

• A)less risky than short-term bonds and so pay higher interest.
• B)less risky than short-term bonds and so pay lower interest.
• C)more risky than short-term bonds and so pay higher interest.
• D)more risky than short-term bonds and so pay lower interest.

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Definitions:

Accounting Principle

A rule or guideline that governs the financial reporting and accounting practices of a business.

Purchaser's Books

Records maintained by the buyer detailing purchases, expenses, and payables, essential for managing and tracking financial transactions.

Parcel of Land

A defined piece of land, identified for legal or development purposes, that can be owned, sold, or developed.

Accounting Equation

The fundamental equation of accounting stating that assets equal liabilities plus equity (Assets = Liabilities + Equity).