The Dow Jones Industrial Average (DJIA) Is Computed by

question 34

Multiple Choice

The Dow Jones Industrial Average (DJIA) is computed by

• A) adding the prices of 30 large "blue-chip" stocks and dividing by 30.
• B) calculating the total market value of the 30 firms in the index and dividing by 30.
• C) adding the prices of the 30 stocks in the index and dividing by a divisor.
• D) adding the prices of the 500 stocks in the index and dividing by a divisor.
• E) adding the prices of the 30 stocks in the index and dividing by the value of these stocks as of some base

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Definitions:

Budgeted Sales

The projected amount of sales, in units or revenue, a company expects to achieve during a specific period, often used for planning and performance evaluation purposes.

Merchandise Inventory

Represents the goods a company has in stock that are available for sale to customers.

Sales on Account

Revenue generated from sales where payment is yet to be collected, often recorded as accounts receivable.

Disbursements Section

A part of cash flow management that records cash outflows or payments made by a business during a specific period.