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What is the best definition of unearned income?
Unearned income is any income that was not paid as part of the compensation for services provided by the taxpayer.An example is income that is generated as a result of investments, properties, stocks and bonds, etc.
Does one have to pay taxes on profits from bond investments?
Yes, profits from bond investments are generally subject to taxes. Interest income earned from bonds is typically taxed as ordinary income at the federal and sometimes state level. Additionally, if you sell a bond for a profit, that capital gain may also be subject to capital gains tax. However, certain types of bonds, like municipal bonds, may offer tax-exempt interest.
What is the difference between an Operating asset and a financial asset?
A financial asset are short term investments in private equity, bonds, hedge funds, and other type of securities. Operating assets are investments that include all internal and external factors within a company. Operating assets hold more value than a financial asset.
How can a transaction not affect liability and equity accounts?
A shift in assets would not affect liability or equity: Receive payment of an Accounts Receiveable, Purchase a Fixed Asset with Cash, move funds from Cash to Investments (Bonds, etc.).
What is net adjusted credit?
Adjusted Net Bank Credit is Net Bank Credit added to investments made by banks in non-SLR bonds (in held-to-maturity (HTM)) or it is the credit equivalent of off-balance-sheet exposures, whichever is higher.
How would you describe bonds?
Bonds are debts to the issuers, whereas they are investments to buyers.
What is perceived to be the safest of all investments?
Bonds of the U.S. government are perceived to be the safest of all investments.
Low risk investments?
Low risk investments generally corresponds with low level returns. Two examples of low risk investments would be investment-grade corporate bonds and uninsured municipal bonds.
What is one of the most stable investments?
US saving bonds
What are some examples of fixed income investments?
Some examples of fixed income investments include government bonds, corporate bonds, certificates of deposit (CDs), and Treasury securities. These investments pay a fixed amount of interest at regular intervals.
What is one of the stable investments?
corporate stock, municipal stocks, U.S savings bonds, corporate bonds?
What do I need to know about high yield investments?
Yes, high yield investments which are also called junk bonds, are quite risky and that is why they pay higher yields. Safer investments will have lower yields, and include AAA and AA rated corporate bonds, government bonds, as well as Certificates of Deposit (CDs) among others.
Can you provide examples of debt investments?
Debt investments are financial assets where an investor lends money to an entity in exchange for regular interest payments and the return of the principal amount at a specified maturity date. Examples of debt investments include government bonds, corporate bonds, municipal bonds, certificates of deposit (CDs), and treasury bills.
Are municipal bonds relatively safe investments?
Yes, one of the safer
Which investments would rank the highest with regard to safety?
Government Bonds
What are the benefits of diversifying a portfolio through bonds and funds investments activity?
Diversifying a portfolio through bonds and funds investments can help reduce risk by spreading out investments across different assets. Bonds provide stability and income, while funds offer diversification and professional management. This can help protect against market fluctuations and potentially increase overall returns.
What are the different types of fixed income investments available in the market?
The different types of fixed income investments available in the market include bonds, certificates of deposit (CDs), Treasury securities, municipal bonds, and corporate bonds. These investments pay a fixed rate of return over a set period of time, making them a popular choice for investors seeking steady income.
