The Net Asset Value of a Mutual Fund Is

question 53

Multiple Choice

The net asset value of a mutual fund is

• A) determined by subtracting the fund's liabilities from its assets and dividing by the number of shares outstanding.
• B) determined by calculating the net price of the assets owned by the fund.
• C) calculated every 15 minutes and used for transactions occurring during the next 15-minute interval.
• D) calculated as the difference between the fund's assets and its liabilities.

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Definitions:

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB).

Amortized

In finance, to amortize a debt means to reduce or extinguish it by making regular payments over a period of time, effectively decreasing the principal amount along with interest.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets of the business.

Borrowing Costs

Borrowing Costs are the interest and other costs that an entity incurs in connection with the borrowing of funds.