Which of the Fundamental Factors Was not used in the Fundamental

question 75

Multiple Choice

Which of the fundamental factors was not used in the Fundamental Index created by Research Affiliates,Inc.?

• A) Sales
• B) Profits (cash flow)
• C) Leverage (debt/equity)
• D) Net assets (book value)
• E) Dividends

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Definitions:

Average Inventory

An accounting measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory levels.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

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

Net Income

The amount of earnings left over after all expenses, including taxes and costs, have been deducted from total revenue; essentially, the company's profit.