Which of the Following Methods of Picking Stocks Is Not

question 60

Multiple Choice

Which of the following methods of picking stocks is not consistent with fundamental analysis?

• A)doing research such as thoroughly reading and analyzing companies' annual reports
• B)choosing mutual funds that are managed by individuals with good reputations
• C)viewing individual stock prices as unpredictable
• D)relying upon the advice of Wall Street analysts

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Definitions:

Account Receivable

Debts owed by customers to a company for items or services that have been dispatched but not compensated.

Asset

Assets held by a company or person anticipated to yield economic advantages in the future.

Expense Payable

Obligations or liabilities to pay for goods or services received but not yet paid for.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, representing a company's financial position.