Which of the Following Is Considered to Have the Lowest

question 27

Multiple Choice

Which of the following is considered to have the lowest risk?

• A)an Aa bond from Hilton Hotels
• B)a Ba bond from Cendant Corporation
• C)commercial paper from McDonald's
• D)a treasury bill from the U.S. government

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Definitions:

Exploration Rights

Permissions or licenses granted to a company or individual to search for minerals, oil, or gas in a specified area.

Cost Model

An accounting method used to value an asset based on its historical cost minus any accumulated depreciation.

Revaluation Model

An accounting method that allows for the upward adjustment in the carrying value of a fixed asset to reflect its current market value.

AASB 6 Scope

Refers to the coverage or applicability boundaries of the AASB (Australian Accounting Standards Board) 6, which deals with the exploration for and evaluation of mineral resources.