Which One of the Following Can Be Considered a Pitfall

question 42

Multiple Choice

Which one of the following can be considered a pitfall for investors new to on-line trading?

• A) On-line trading is fast and efficient.
• B) On-line investors tend to trade too frequently.
• C) On-line trading is available to the average investor.
• D) On-line investors pay lower costs per trade than investors using a broker.

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period.

Expected Sales

Forecasted or projected revenue figures estimated from future sales over a specific period.

Flexible Budgeting

A budgeting process that allows for adjustments to budgetary allocations based on changes in actual performance, revenue, or other factors.

Sales Budget

A financial plan that estimates the revenues expected from sales over a future period.