All of the Following Are Typical Long-Term Portfolio Investments Included

question 65

Multiple Choice

All of the following are typical long-term portfolio investments included in the capital account except ________.

• A) government bonds
• B) checking account balances
• C) government bills
• D) corporate stocks and bonds

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Definitions:

Opportunity Costs

The price paid by not choosing the second-best option available during decision-making.

Foregone Resource

The benefits or income lost when one option is chosen over another, essentially another term for opportunity cost but often used in the context of tangible resources.

Cash Flow Estimation

The process of predicting the amount of money that will move in and out of a business in a future period.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.