The Process of Moving Investments Between Sectors of the Economy

question 43

Multiple Choice

The process of moving investments between sectors of the economy over time is called.

• A)sector rotation
• B)sector selection
• C)rotational investing
• D)sector exchange
• E)sector swapping

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Definitions:

Internal Control Procedure

Processes undertaken by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Reconciliation

The method of aligning and scrutinizing the numbers in financial records with the ones shown on a bank statement.

Aging of Accounts Receivable

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, helping to determine credit and collection policies.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.