Comparing Long-Term Bonds with Short-Term Bonds,long-Term Bonds Are ________ Volatile

question 3

Multiple Choice

Comparing long-term bonds with short-term bonds,long-term bonds are ________ volatile and therefore experience ________ price change than short-term bonds for the same interest rate shift.

• A)less; less
• B)less; more
• C)more; more
• D)more; less
• E)more; the same

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Definitions:

Perpetual Inventory Method

An accounting method that continuously tracks inventory levels and costs, updating the inventory account after each purchase or sale.

General Journal Entries

The initial record where financial transactions are first entered into the accounting system, before summarizing or posting to ledgers.

Perpetual Inventory Method

An inventory system that updates inventory accounts after each purchase or sale on a continuous basis.

General Journal Entries

The recordation of financial transactions in the general journal in chronological order, which are then posted to individual accounts in the general ledger.