Identify the Statement Below That Is Correct

question 212

Multiple Choice

Identify the statement below that is correct.

• A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
• B) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
• C) Promises of future payment by the customer are called accounts receivable.
• D) Accrued liabilities include accounts receivable.
• E) Increases and decreases in cash are always recorded in the owner's capital account.

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Definitions:

Bond Portfolio Managers

Professionals who specialize in the strategic management of bond portfolios, aiming to maximize returns and minimize risks for investors.

Active

In finance, refers to a management strategy involving regular buying and selling of assets to outperform the market, opposite of passive strategies like indexing.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, to its holders.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, typically expressed in years.