20-117 in Calculating the Net Capital for a Securities Firms,which

question 16

Multiple Choice

20-117 In calculating the net capital for a securities firms,which of the following is NOT an adjustment to the book value of net worth?

• A)The market value of net worth is calculated on a day-to-day basis.
• B)A series of adjustments are made to reflect unrealized profits and losses,subordinated liabilities,deferred taxes,options,and futures.
• C)The amount of securities that cannot be publicly sold are subtracted.
• D)All assets not readily converted into cash are subtracted.
• E)Haircuts to reflect potential market value fluctuations in asset values are deducted.

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Definitions:

Total Amount

The aggregate or final sum of various components, such as the total cost, payment, or investment value.

Exact Interest

A method of calculating interest based on a 365 or 360-day year, often used in banking and finance to determine the amount due on loans or investments.

365-Day Year

A convention used in interest calculations assuming a full year consists of 365 days.

Total Amount

The complete sum or aggregate of quantities, such as the final amount due for payment or the sum total of assets.