Of the Following Statements,which One Accurately Describes What Investments Are

question 26

Multiple Choice

Of the following statements,which one accurately describes what investments are?

• A)A foundation for your savings
• B)Savings vehicles that provide the same return as certificates of deposit
• C)Savings vehicles with no risk
• D)A way to have your money grow faster than inflation

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Definitions:

Book Value

Book value is the value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus any depreciation, amortization, or impairment costs.

Loss on Disposal

An expense recorded when an asset is sold for less than its carrying amount on the balance sheet.

Cash Proceeds

The actual amount of money received from transactions such as sales, financing, or the sale of assets.

Book Value

Book value is the net value of a company's assets found on its balance sheet, and is calculated by subtracting total liabilities from total assets.