Which One of the Following Is a True Statement

question 40

Multiple Choice

Which one of the following is a true statement?

• A) When choosing a stock advisory service that charges fees for their investment advice, the quality of the information is always excellent.
• B) Mergent's Investors Service only provides information about bonds.
• C) Value Line provides information about bonds and mutual funds, but not common stocks.
• D) The information provided by investors' services consists of simple alphabetical listings only.
• E) Online computer services may be used to research companies and to obtain current stock prices.

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Definitions:

Fair Market Value

The price at which an asset would sell in an open and competitive market where the buyer and seller each have reasonable knowledge of the relevant facts.

Estimated Useful Life

Estimated useful life is the period over which an asset is expected to be usable for its intended purpose, used to calculate depreciation.

Periodic Depreciation

The method of allocating the cost of a tangible asset over its useful life on a periodic basis, usually annually.

Retroactive Change

A change applied to past periods or transactions in financial records or systems, typically to correct errors or implement new information.