Mutual Funds

question 17

Multiple Choice

Mutual funds

• A)provide diversification.Shareholders assume all of the risk associated with the mutual fund.
• B)provide diversification.Government insurance eliminates the risk of mutual fund shareholders.
• C)do not provide diversification.Shareholders assume all of the risk associated with the mutual fund
• D)do not provide diversification.Government insurance eliminates the risk of mutual fund shareholders.

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Definitions:

Sales Transactions

Financial exchanges involving the transfer of goods or services from seller to buyer for payment.

Journal Entries

Records of financial transactions in the accounting system in the order in which they occur.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to verify the equality of debits and credits and prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the company's books for the next period.