NAV Is Equal to the

question 89

Multiple Choice

NAV is equal to the

• A) current market value of a mutual fund's portfolio minus the mutual fund's liabilities divided by the number of outstanding shares.
• B) current market value of a share of ordinary share multiplied by the number of outstanding shares divided by the company's sales.
• C) current market value of a company divided by the number of outstanding shares offered by that company.
• D) current market value of a mutual fund's portfolio minus the mutual fund's administrative costs divided by the number of outstanding shares.
• E) previous market value of a mutual fund's portfolio adding the revenue generated by the fund during a 12-month period.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

Unit Sales

The total number of individual items or units sold by a company in a specific period.

Absorption Costing

A financial recording approach that encompasses all production expenses, including direct materials, direct labor, and overhead costs, both variable and fixed, in the pricing of a product.

Income Statement

The income statement is a financial report that shows a company's revenues, expenses, and profits over a specific period, highlighting its financial performance.