Francesca Withdrew $7,000 from B Shares That She Owned in the Already

question 24

Multiple Choice

Francesca withdrew $7,000 from B shares that she owned in the Already Been Counted mutual fund within one year of her purchase. If she must pay a 5% contingent deferred sales fee, what amount will she actually receive?

• A) $350
• B) $6,650
• C) $7,000
• D) $7,350
• E) $7,500

Understand the purpose and process of making closing entries in accounting.

Comprehend the concept of adjusting entries and their importance in preparing financial statements.

Identify and classify assets as current or long-term within a classified balance sheet.

Recognize and categorize different types of liabilities on a classified balance sheet.

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Definitions:

Shipping Term

Conditions that outline the delivery arrangements and responsibilities between buyers and sellers, often specified in contracts.

FAS

A term in international commerce, standing for "Free Alongside Ship," indicating that the seller is responsible for the delivery of goods to a named port alongside a vessel.

Risk Passes

A term indicating the point in a transaction where the liability for loss or damage to goods transfers from the seller to the buyer.

Buyer's Expense

Buyer's expense refers to costs that the purchaser of goods or services is required to pay, outside of the purchase price, such as shipping or taxes.