Which of the Following Is Not True of Mutual Funds

question 115

Multiple Choice

Which of the following is not true of mutual funds?

• A)Mutual funds range from very conservative to extremely speculative investments.
• B)They do not offer diversification.
• C)They can be used for retirement accounts.
• D)This investment provides professional management.
• E)A mutual fund pools the money from many investors.

---

Definitions:

Contributed Capital

The total value of the cash and other assets received by a company from its shareholders in exchange for shares of stock.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, highlighting net profit or loss.

Accounting Records

Documents and books that keep track of all financial transactions of a company, forming the basis for financial statements.

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, showing the balances after adjusting entries have been made for accruals, deferrals, and other adjustments.