Time Is an Important Factor When Evaluating a Managed Mutual

question 49

Multiple Choice

Time is an important factor when evaluating a managed mutual fund for which of the following?

• A) The existence of the underlying index.
• B) The life of the companies in the fund.
• C) The length of time that the present fund manager has been managing the fund.
• D) The status of the economy.
• E) None of these.

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Definitions:

Operating Segments

Components of an enterprise that engage in business activities earning revenues and incurring expenses, whose operational results are regularly reviewed by the entity's chief operating decision maker.

External Customers

Individuals or entities that purchase goods or services from a business but are not part of the organization itself.

Revenue Test

A criterion used to determine the recognition of revenue in accounting, which stipulates that revenue can be recognized when it is probable that future economic benefits will flow to the entity and these benefits can be measured reliably.

Profit or Loss Test

A method used to determine the effectiveness and efficiency of a business by comparing its profits or losses over a specific period.