Which of the Following Does Not Represent an Arbitrage Transaction

question 56

Multiple Choice

Which of the following does not represent an arbitrage transaction?

• A) Traders buy silks where they are abundant and cheap, and haul them along a trail to another place where they would be quite scarce and valued.
• B) An investor buys a stock when the company is new and relatively unknown and then sells the stock for a much higher price when the company is well-known and profitable.
• C) Someone buys a block of Final Four tickets and scalp them at the game.
• D) A boat manufacturer buys the electrical components for its boats from the lowest cost supplier and then sells the boats to consumers.

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Definitions:

Post-closing Trial Balance

A financial report created after closing entries are made, listing all accounts and their final balances to ensure debits equal credits.

Proper Form

The required or correct format, arrangement, or procedure that a document, action, or process must adhere to according to rules, standards, or laws.

Closing

The process of finalizing accounts at the end of an accounting period to prepare them for the next period.

Post-closing Trial Balance

A list of all permanent accounts and their balances after closing entries are made, used to check the balance and prepare for the new accounting period.