Which of the Following Is Not One of the Four

question 162

Multiple Choice

Which of the following is not one of the four basic financial statements?

• A) balance sheet
• B) statement of cash flows
• C) statement of changes in financial position
• D) income statement

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Definitions:

Liquidity Premium

The portion of a nominal interest rate or bond yield that represents compensation for lack of liquidity.

Inflation

An indicator of how quickly the overall price level for goods and services increases, leading to a decrease in buying power.

Inflation Premium

The additional yield that investors demand on securities to compensate for the loss of purchasing power due to inflation.

Nominal Interest Rate

The stated interest rate of a bond or loan, which does not account for inflation or the compounding of interest.