Which of the Statements Below Is TRUE

question 10

Multiple Choice

Which of the statements below is TRUE?

• A)Investors want to maximize return and maximize risk.
• B)Investors want to maximize return and minimize risk.
• C)Investors want to minimize return and maximize risk.
• D)Investors want to minimize return and minimize risk.

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Definitions:

Accrued Interest

Accrued interest is the interest that has accumulated on a loan or bond but has not yet been paid. It is recognized in the accounting records before the payment is made.

Interest on Loan

The cost incurred by borrowing money, calculated as a percentage of the principal loan amount.

Asset Account

An Asset Account is a financial record that tracks the value of a company’s tangible and intangible properties, like buildings, cash, or intellectual property.

Revenue Account

An account that tracks the income generated by a business from its normal operations.