List Considerations You Should Take into Account When Purchasing a Mutual

question 75

Essay

List considerations you should take into account when purchasing a mutual fund.

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Definitions:

Expense Recognition Principle

An accounting standard that expenses should be recognized in the period in which they are incurred, regardless of when payment is made.

Warranty Costs

Expenses incurred by a company to repair or replace products under warranty.

Gross Wages

The total amount earned by an employee before any deductions such as taxes or retirement contributions.

Regular Rate

The standard rate of pay for an employee's normal working hours, not including overtime or bonuses.