After the Financial Crisis of 2007/2008, the Dow Jones Industrial

question 186

Multiple Choice

After the financial crisis of 2007/2008, the Dow Jones Industrial Average (DJIA) improved from a low of 7278 on March 20, 2009, to new records just a few years later.On August 8, 2011, the Dow dropped 634.8 points.A histogram of day-to-day changes in the DJIA looked like the histogram below.An accurate description of the distribution of changes in the DJIA is

• A)The distribution is fairly symmetric.
• B)The distribution is somewhat left skewed with a number of low outliers.
• C)A normal probability plot would add information about the normality of the data set.
• D)Both A and C
• E)Both B and C

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Definitions:

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary to permanent accounts and prepare the company's books for the next period.

Closing Process

The closing process involves the steps taken to finalize all accounting records and summarize financial activities for a specific period, preparing for the next accounting cycle.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.