Stock a Has 10 Million Shares Issued and Stock B

question 28

Multiple Choice

Stock A has 10 million shares issued and Stock B has 5 million shares issued.What is their relative weighting if both stocks are represented in the S&P 500?

• A)Equal-weightings, like all S&P 500 stocks
• B)B has twice the weighting, to account for having fewer shares
• C)A has twice the weighting, to account for having more shares
• D)They are weighted according to their expected performance

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Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be delivered or provided, considered a liability until the goods or services are delivered.

Double Rule

A method used in accounting to draw attention to totals or end of reports by placing two lines beneath them for emphasis.

Total

The aggregate amount or sum of individual items or elements in a set or group.

Closing Journal Entries

The entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and prepare the company's books for the next period.