Under FASB Statement 117,reclassifications of Net Assets Are Not Made

question 110

Multiple Choice

Under FASB Statement 117,reclassifications of net assets are not made:

• A) For satisfaction of time restrictions.
• B) For satisfaction of program restrictions.
• C) If the governing board decides to permanently place assets in an endowment.
• D) None of the above.

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Definitions:

Expected Return

The average of all possible returns from an investment, weighted by their respective probabilities.

Cyclical Stock

Stocks whose prices are affected by macroeconomic changes in the economy.

Countercyclical Stock

Shares of companies that tend to perform well during economic downturns because they offer goods or services that remain in demand.

Portfolio Weight

The percentage composition of a particular holding or investment relative to the total value of the portfolio.