An Analyst Constructs a Moving Average Line in Order To

question 16

Multiple Choice

An analyst constructs a moving average line in order to:

• A) forecast future cash earnings of a company.
• B) analyse support and resistance lines.
• C) smooth out erratic price movements.
• D) work out the efficiency of the market.

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Definitions:

Capital

The financial resources that businesses use to fund their operations and growth.

Closing Process

The final steps in the accounting cycle used to update the financial records for the period's revenues, expenses, and dividends to prepare for the next accounting period.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, illustrating the company's profit or loss.

Income Summary Account

A temporary account used in closing process to transfer the balances of all revenue and expense accounts to Retained Earnings.