Which of the Following Is True of the Dow Jones

question 17

Multiple Choice

Which of the following is true of the Dow Jones Industrial Average?

• A) It is a value-weighted average of 30 large industrial stocks.
• B) It is a price-weighted average of 30 large industrial stocks.
• C) The divisor must be adjusted for stock splits.
• D) It is a value-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits.
• E) It is a price-weighted average of 30 large industrial stocks, and the divisor must be adjusted for stock splits.

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Definitions:

Financial Statements

These are formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The final profit figure for a company, calculated by subtracting all expenditures and taxes from revenues.

Total Liabilities

The combined debts and obligations that a company owes to outside parties at any given time.

Accrued Expenses

Expenses that have been incurred but not yet paid for, often recognized in accounting through an adjusting entry.