Which of the Following Statements Is False

question 50

Multiple Choice

Which of the following statements is false?

• A) The most familiar stock index in the United States is the Dow Jones Industrial Average (DJIA).
• B) A portfolio in which each security is held in proportion to its market capitalization is called a price-weighted portfolio.
• C) The Dow Jones Industrial Average (DJIA) consists of a portfolio of 30 large industrial stocks.
• D) The Dow Jones Industrial Average (DJIA) is a price-weighted portfolio.

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Definitions:

Patent Amortization Expense

The annual charge to expense over the useful life of a patent, representing the cost allocation of its value as an intangible asset.

Straight-Line Method

The straight-line method is a way of calculating depreciation by evenly spreading the cost of an asset over its useful life.

R&D Costs

Expenditures related to the research and development of company’s products or services.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.