The riskiness of an asset's return that results from interest rate changes is called
A) interest-rate risk.
B) coupon-rate risk.
C) reinvestment risk.
D) yield-to-maturity risk.
A
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Treasury bills issued by the U.S. government
A. do not have a specific period of maturity. B. promises to pay dividends to its owners. C. are long term debt securities. D. are short term debt securities.
An investor receives a return from an investment due to:
A. recurring deposits. B. capital gains on the sale of an investment. C. asset allocation among different asset classes. D. rebalancing by buying more equities. E. diversification among or within asset classes.
Why is the audit trail important?
A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,000, has been completed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end?
A. Debit Accounts Receivable, $3,000; credit Roofing Fees Revenue, $3,000. B. Debit Cash, $3,000; credit Roofing Fees Revenue, $3,000. C. Debit Roofing Fees Revenue, $3,000; credit Accounts Receivable, $3,000. D. Debit Cash, $3,000; credit Accounts Receivable, $3,000. E. No adjustment is required.