Because These Securities Are More Liquid and Generally Have Smaller

question 82

Multiple Choice

Because these securities are more liquid and generally have smaller price fluctuations,corporations and banks use the ________ securities to earn interest on temporary surplus funds.

• A)money market
• B)capital market
• C)bond market
• D)stock market

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer due to a return, error, or allowance.

Merchandise Returned

Refers to goods that have been sold and then returned by the customer due to various reasons such as defects or dissatisfaction.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and shipping costs from the point of origin.