Which of the Following Statements Is NOT a Difference Between

question 23

Multiple Choice

Which of the following statements is NOT a difference between an exchange traded fund (ETF) and an index fund?

• A) An ETF is structured to track a market index using a diversified basket of securities while an IMF focuses on tracking a market index using a portfolio comprising a defined group of securities within the index.
• B) The structure of an ETF provides greater liquidity than an IMF since its market prices change throughout the day while an IMF is valued only one a day.
• C) An ETF offers a daily disclosure of holdings while an IMF typically discloses through quarterly reports.
• D) An IMF will distribute realized capital gains and losses more frequently than an IMF.

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Definitions:

Unearned Gym Memberships

Revenue received from gym memberships that have not yet been earned because the service has not been provided, recorded as a liability on the balance sheet.

Gym Memberships Revenue

Revenue generated from the sale of memberships or subscriptions to a fitness gym.

Prepaid Gym Memberships

Payments made in advance for gym services, representing a future expense for the gym that becomes realized as the service period elapses.

Prepaid Insurance

An asset account on the balance sheet that represents the advance payment of insurance premiums for future coverage periods.