In Calculating the Net Asset Value (NAV), Which of the Following

question 61

Multiple Choice

In calculating the net asset value (NAV) , which of the following is true?

• A) Dividends are subtracted and expenses added.
• B) Interest is subtracted and expenses are added.
• C) Dividends are added and expenses are subtracted.
• D) Interest and other expenses are not included.

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Definitions:

Inventory Accounting

The process of valuing and tracking physical stock and its cost flow from purchase to sale, used to determine cost of goods sold and inventory balance.

FOB Destination

A shipping term indicating that the seller bears the freight charges and retains ownership of goods in transit until they are delivered to the buyer.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer takes ownership and responsibility for goods at the moment they are shipped.

Specific Identification Method

An inventory costing method where each item in inventory is individually identified and valued, suitable for unique or expensive items.