Which of the Following Has the Highest Expected Return to the Investor

question 67

Multiple Choice

Which of the following has the highest expected return to the investor?

• A)Common Stock.
• B)Preferred Stock.
• C)Bonds.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.

Normal Balance

The side (debit or credit) of an account that is expected to have a positive balance.

Subtraction

A basic mathematical operation representing the difference between numbers or quantities.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of a tangible asset over its useful life in equal installments.