Which of the Following Statements Is Correct

question 100

Multiple Choice

Which of the following statements is correct?

• A)Stocks,bonds,and deposits are all similar in that each provides a common medium of exchange.
• B)Most buyers of stocks and bonds prefer those issued by large and familiar companies.
• C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
• D)None of the above is correct.

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Definitions:

Operating Activities

Transactions and events that are directly related to the primary business operations of a company, affecting its cash flows.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered on credit but not yet paid.

Inventory

An accounting term that refers to the goods and materials a business holds for the ultimate goal of resale.

Operating Activities

Pertains to the primary day-to-day activities of a business, such as selling products or services, which are reflected in the cash flow statement.