Which One of the Following Has the Lowest Level of Risk

question 20

Multiple Choice

Which one of the following has the lowest level of risk?

• A) commercial paper
• B) money market mutual fund account
• C) banker's acceptance
• D) U.S. Treasury bill

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Definitions:

Loss Account

A financial record that tracks the net losses of a company, often showcasing expenses that exceed revenues in a specific period.

Tangible Asset

A physical asset that can be touched and has intrinsic value, such as machinery, buildings, and land.

Copyright

A form of intellectual property law that grants the creator of an original work exclusive rights to its use and distribution, typically for a limited time.

Depletion

Depletion is an accounting concept used to allocate the cost of extracting natural resources, such as timber or minerals, from the earth, reflecting the consumption of the asset over time.