Which of the Following Is an Example of a Portfolio

question 29

Multiple Choice

Which of the following is an example of a portfolio investment?

• A)A pension fund purchases stock in a Mexican telephone company.
• B)The Campbell Soup Company purchases Godiva Chocolates.
• C)Hershey's,the candy maker,relocates its factories to Mexico and El Salvador.
• D)Walmart purchases a majority of shares of a Thai clothing manufacturer.

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Definitions:

Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction takes place.

Unrecorded Expense

An expense that has been incurred but not yet documented or reported in the accounting records.

Unrecorded Revenue

Revenue that has been earned but has not yet been documented in the accounting records.

Revenues

The income generated from normal business operations, often from the sale of goods and services to customers.