The Portfolio Manager of a Value Fund Uses Analytical Techniques

question 51

True/False

The portfolio manager of a value fund uses analytical techniques such as a price to earnings ratio.

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Definitions:

Straight-line Method

A depreciation method where the value of an asset is reduced evenly over its useful life.

Journal Entries

Records of financial transactions in the accounting system, indicating the accounts and amounts to be debited and credited.

Equipment Cost

The purchase price of machinery and tools required for manufacturing or providing services, excluding ongoing operating expenses.

Salvage Value

The calculated sale amount an asset is deemed to achieve after its useful life concludes.