Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)The net asset value equals the total market value of the assets of the fund.
• B)The net asset value equals the total market value of the assets of the fund divided by the number of shares in the funds outstanding.
• C)The net asset value equals the number of shares in the funds outstanding divided by the total market value of the assets of the fund.
• D)The net asset value equals the total market value of the assets of the fund multiplied by the number of shares in the funds outstanding.

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Definitions:

Carrying Amount

The net value of an asset or liability as presented on the balance sheet, accounting for factors like depreciation or amortization where applicable.

Accrual Basis

Accrual Basis is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.

Expenses Recognized

Costs that have been incurred in an accounting period and are matched with revenues in the same period, affecting a company's income statement.