Which One of the Following Statements Is Correct Regarding Moving

question 38

Multiple Choice

Which one of the following statements is correct regarding moving averages?

• A)The 50-day moving average reflects the long-term trend of the market.
• B)An exponential moving average is a weighted average.
• C)Moving averages are used primarily to measure trading volume.
• D)Short-term and long-term moving averages always move in the same direction.
• E)Moving averages are generally computed using average daily prices.

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Definitions:

Accrued Interest

Interest that has been earned but not yet paid, accumulating on bonds, loans, or any interest-bearing assets.

Note Receivable

A written promise for the amounts to be received within a certain period of time, which represents a right to receive payments from another entity.

Payment of Account

The process of settling an amount owed to a creditor or vendor, often referred to as making a payment on an account.

Accounts Receivable Turnover

A financial ratio that measures how many times a company collects its average accounts receivable within a period.