David Harris Has Invested in Something That Acts Like a Mutual

question 142

Multiple Choice

David Harris has invested in something that acts like a mutual fund and that invests in construction loans and property all over the country. This investment trades on the New York Stock Exchange. What type of investment has David made?

• A) Limited partnership
• B) Equity REIT
• C) Mortgage REIT
• D) Hybrid REIT
• E) Participation certificate

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Definitions:

Sales Returns & Allowances

Sales Returns & Allowances account for the reduction in sales due to products being returned or allowances provided for damaged goods.

Merchandise Inventory

Goods that a business holds for the purpose of selling to customers, often part of the current assets on a company's balance sheet.

Periodic

Occurring or recurring at regular intervals, often used to describe payments, reviews, or assessments.

Freight-In

A cost of goods sold account that records the shipping cost to the buyer.