Which of the Following Statements Is True of Investment Returns

question 84

Multiple Choice

Which of the following statements is true of investment returns?

• A) A change in the price of the underlying asset usually has no impact on returns to investment.
• B) Income yield always accounts for the bulk of the returns from an investment.
• C) The higher the price of the asset during the time of purchase, the lower the returns from that investment.
• D) The higher the income yield, the lower the overall returns from that investment.

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Definitions:

Inventoriable Costs

Costs that are considered as assets on the balance sheet when incurred and then become cost of goods sold when the product is sold.

Warehousing Departments

Sections within a company dedicated to storing goods until they are sold or distributed.

FIFO Method

The First-In, First-Out (FIFO) method is an inventory valuation approach where goods produced or acquired first are sold or used first.

Physical Count

The process of manually counting all inventory items in a store or warehouse to verify quantities and condition.