Which of the Following Is True of the NASDAQ Composite

question 33

Multiple Choice

Which of the following is true of the NASDAQ Composite Index?

• A)It includes stocks of 500 companies that are widely owned by U.S.citizens.
• B)It represent all major areas of the U.S.economy.
• C)It includes mostly the stocks technology and Internet related companies.
• D)It contains more than 6,500 stocks that trade in the United States.
• E)It includes all of the stocks on the New York Stock Exchange.

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Definitions:

Business Entity Assumption

A principle in accounting that treats a business as separate from its owners or other businesses, allowing for independent financial accounting and reporting.

Accounting Equation

The accounting equation, Assets = Liabilities + Equity, is the fundamental formula in accounting, ensuring that a company's balance sheet is balanced.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' share.

Assets

Resources owned or controlled by a business or an individual that are expected to produce positive economic value.