Stocks Provide Average Safety While Government Bonds Provide ________ Safety

question 30

Multiple Choice

Stocks provide average safety while government bonds provide ________ safety.

• A)low
• B)medium
• C)high
• D)average
• E)below average

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, minus the estimated costs of completion and the estimated costs necessary to make the sale.

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

LIFO Cost Flow

An inventory valuation method, "Last In, First Out", where the last items placed in inventory are the first ones to be recorded as sold, affecting the company's inventory cost on financial statements.

Ending Inventory

The cumulative worth of a company's entire stock inventory at the conclusion of a financial accounting period.