You Have $5,000 in an Index Mutual Fund

question 114

True/False

You have $5,000 in an index mutual fund.At an average annual rate of return of 10% per year,this investment should exceed a value of $500,000 by the time you retire in 40 years.

Recognize the types of disclosures required by GAAP and the SEC in financial statements.

Identify and describe the components and format of the balance sheet.

Explain the inclusion and disclosure of post-reporting period events in the financial statements.

Discuss the limitations of the balance sheet in financial reporting.

---

Definitions:

Weekly Wage Rate

The amount of compensation a worker receives on a weekly basis for their labor or services.

Elastic Supply

Describes a market situation where the quantity supplied changes significantly due to changes in price.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Wage Rate

The standard amount of compensation received by employees for services rendered per unit of time, often expressed as an hourly rate or annual salary.