Which of the Following Are Offered as Possible Causes of the January

question 22

Multiple Choice

Which of the following are offered as possible causes of the January effect?
I. new professional money managers who assume the role at the beginning of the year
II. tax loss selling in December
III. bonus lock-in effect
IV. window dressing

• A)I and II only
• B)III and IV only
• C)I, III, and IV only
• D)II, III, and IV only
• E)I, II, III, and IV

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Definitions:

Cash

Cash refers to company-held currency and bank account balances that are readily available for use.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Accounting Equation

A fundamental principle in accounting that states assets equal liabilities plus owner's equity.