Which One of These Statements Is Correct

question 4

Multiple Choice

Which one of these statements is correct?

• A)Treasury bills outperformed inflation every year during the period 1926-2015.
• B)Small-company stocks outperformed large-company stocks every year during the period 1926-2015.
• C)On an annual basis,small-company stocks had more consistent rates of return than did large-company stocks for the period 1926-2015.
• D)The inflation rate has been positive every year during the period 1926-2015.
• E)During the 1930s (Great Depression),long-term government bonds produced a relatively stable rate of return relative to large-company stocks.

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Definitions:

Credit Sales

Sales made by a business where the payment is received after the sale has been made, typically recorded as accounts receivable.

Adjustment

Entries made in preparing financial statements to allocate expenses or revenues to the appropriate accounting period.

Aging Report

A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Allowance for Doubtful Accounts

This is a contra-asset account that reduces the total amount of accounts receivable reported on the balance sheet, reflecting the estimate of non-collectible amounts due to credit sales.