Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A) The purpose of investing in a closed-end, exchange-traded fund or open-end mutual fund is to earn a financial return.
• B) Income dividends are the earnings that a fund pays to shareholders from its dividend and interest income.
• C) Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.
• D) The only way to make money on a mutual fund is by selling shares at a higher price than was initially paid for them.
• E) All of these statements are true.

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Definitions:

Indirect Labor

Labor costs not directly tied to the production of goods or services, such as maintenance staff and supervisors.

Work in Process

Goods partially completed in manufacturing, not yet ready for sale.

Raw Materials

The basic materials from which a product is made, used in the early stages of the production process.

Work in Process

Inventory that includes materials that have been partially completed, but not yet ready for sale.