Which of These Is Not a True Statement

question 101

Multiple Choice

Which of these is not a true statement?

• A)ETFs can be purchased through a broker.
• B)ETFs can be purchased on margin.
• C)ETFs can be sold short.
• D)ETFs have lower management expenses than conventional mutual funds.
• E)ETFs cannot be purchased through a broker, on margin, sold short, and have lower management expenses than conventional mutual funds.

---

Definitions:

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in controlling its production or purchase costs.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies.

Intra-entity Gross Profit

The profit recognized on transactions conducted within the same entity, not realized in consolidated financial statements until the transactions affect an external party.

January 1 Retained Earnings

The amount of earnings retained in a company as of the beginning of the fiscal year, not distributed to shareholders in the form of dividends.