Although Standard and Poor's Composite Index Contains a Small Number

question 33

Multiple Choice

Although Standard and Poor's Composite Index contains a small number of U.S.publicly traded stocks,the Index represents:

• A) all stocks that prefer to be equally weighted.
• B) all stocks that prefer to be value-weighted.
• C) approximately 50% of U.S. stocks traded, in value.
• D) approximately 75% of U.S. stocks traded, in value.

---

Definitions:

Prepaid Expense Account

An asset account that represents payments made in advance for goods or services to be received in the future.

Expenses

Outflows of resources or incurring of liabilities (or a combination of both) resulting from a company's activities intended to generate income.

Assets

Economic resources owned or controlled by a business or an individual that are expected to produce value.

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for its users.