The NASDAQ

question 107

Multiple Choice

The NASDAQ:

• A) weights individual stocks equally.
• B) gives greater weight to larger stocks than does the Dow.
• C) gives greater weight to high-tech stocks than does the Dow.
• D) has 30 stocks.

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Definitions:

Accounts Payable

Amounts owed by a business to its suppliers shown as a liability on a company’s balance sheet and typically due within a short period of time, often 30 to 90 days.

Equipment

Tangible assets used in the operations of a business, not intended for sale, and depreciated over time.

Drawing Account

An account that tracks the amount withdrawn by the owners from the business for personal use.

Credit Balance

The amount appearing on the credit side of a ledger, indicating the total credits exceed the total debits in an account.