A Mutual Fund Has Sales During the Year of $86

question 93

Multiple Choice

A mutual fund has sales during the year of $86 million and purchases of $94 million. If the average daily assets of the fund were $110 million, what was the fund turnover?

• A) 0.82
• B) 0.71
• C) 0.78
• D) 0.74
• E) 0.85

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Definitions:

Year-End Information

Financial and operational data summarizing a company's performance over the course of a fiscal year, often used for analysis and reporting purposes.

Income Statements

A financial report that shows a company's revenue and expenses, resulting in net income or loss over a specific period.

Periodic Inventory System

An inventory accounting system where inventory counts and cost of goods sold calculations are made at set intervals, such as monthly or yearly.

Gross Method

An accounting practice where purchases are recorded at their full invoice amount without deducting any cash discounts.