Which One of the Following Statements Is True

question 10

Multiple Choice

Which one of the following statements is true?

• A)Most mutual funds are managed funds.
• B)How long the present fund manager has been managing the fund is irrelevant.
• C)You should ignore fees when comparing mutual funds.
• D)Managed funds are usually index funds.
• E)A team of managers is always better than a single fund manager.

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Definitions:

End-Of-Period Accrual

Accounting adjustments made at the end of accounting periods to record revenues earned and expenses incurred but not yet recorded.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to the reversal of revenue and reduction in sales figures.

Gross Accounts Receivable

The total amount owed to a company by its customers before deducting any allowance for doubtful accounts.

Accrual Accounting

A financial recording approach in which earnings and expenditures are documented upon being accrued, without considering the timing of the associated cash movements.