New Year Sale 2026! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AICPA CPA-Business Exam - Topic 1 Question 29 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 29
Topic #: 1
[All CPA-Business Questions]

When purchasing temporary investments, which one of the following best describes the risk associated with the ability to sell the investment in a short period of time without significant price concessions?

Show Suggested Answer Hide Answer
Suggested Answer: D

Choice 'd' is correct. Liquidity risk is associated with the ability to sell the temporary investment in a short period of time without significant price concessions.

Choice 'a' is incorrect. Interest rate risk is the fluctuation in the value of a 'financial asset' when interest rates change.

Choice 'b' is incorrect. Purchasing power risk is the risk that price levels will change and affect asset values (mostly real estate).

Choice 'c' is incorrect. Financial risk is a general category of risk that includes:

* Interest rate risk

* Market risk

* Purchasing power risk

* Liquidity risk

* Default risk


by Natalie at May 05, 2022, 03:52 AM

Limited Time Offer

25%

Off

Get Premium CPA-Business Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Vanda
4 months ago
Really? I thought purchasing power risk was a bigger deal.
upvoted 0 times
...
Shasta
4 months ago
Nope, it's definitely liquidity risk.
upvoted 0 times
...
Brittney
4 months ago
Wait, isn't that more about interest rate risk?
upvoted 0 times
...
Rosendo
4 months ago
I agree, liquidity risk is spot on.
upvoted 0 times
...
Helga
5 months ago
Definitely liquidity risk! You need to sell quickly.
upvoted 0 times
...
Melissia
5 months ago
Okay, let's see. The question is asking about the bandwidth types for DBA in a GPON network. I'm pretty familiar with GPON, so I think I can work this out.
upvoted 0 times
...
Freeman
5 months ago
I remember discussing how important it is to map initiators to target LUNs correctly for SAN boot setups. Is option D the one where each initiator has a different target?
upvoted 0 times
...
Odette
5 months ago
Okay, let's see. I think the key is to identify the common types of logic that are typically found in a service facade. Behavior correction, protocol bridging, relaying, and transformation logic all seem like good options.
upvoted 0 times
...

Save Cancel