Which of the Following Is an Advantage of Home Ownership

question 97

Multiple Choice

Which of the following is an advantage of home ownership?

• A) Home ownership is a good way to control the costs of utilities, maintenance, and insurance.
• B) Mortgage interest and real estate taxes are tax deductible.
• C) Money invested in a house is a highly liquid investment.
• D) Home ownership provides a guaranteed rate of return that is more stable than the return earned by investing in the stock market.

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Definitions:

Comprehensive Income

A measure of all changes in equity during a period except those resulting from investments by and distributions to owners.

Parent Company

A parent company is a corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Subsidiary Company

A company that is completely or partly owned and wholly controlled by another company, referred to as the parent company.

Inventory

An accounting term for goods and materials held by a company in stock with the intention of selling them or transforming them in the production process.