Stock Market Indexes

question 3

Multiple Choice

Stock market indexes:

• A)are all computed using the same methodology.
• B)all react the same to a change in the price of a particular stock.
• C)all cover the same market sectors.
• D)are all price-weighted.
• E)vary in the type of stocks included.

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Definitions:

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period.

Financial Budgets

Detailed plans that outline an organization's financial goals, expected revenues, and expenses for a specific period.

Cash Budget

A budget that estimates the expected receipts (inflows) and payments (outflows) of cash for a period of time.

Capital Expenditures Budget

A plan for a company’s expenditures on large physical assets like property, plant, and equipment that are expected to last more than one year.