Which of the Following Statements About Moving Averages Is NOT

question 199

Multiple Choice

Which of the following statements about moving averages is NOT true?

• A) It gives equal weight to all values in the computation.
• B) It is simpler than the method of exponential smoothing.
• C) It gives greater weight to more recent data.
• D) It can be used to smooth a series.

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Definitions:

GAAP

Widely Recognized Accounting Standards; a set of standard accounting practices and rules routinely adhered to for financial reporting purposes.

Fair Value Accounting

An accounting approach where assets and liabilities are recorded at their current market value, not just historical cost.

Valuation Allowance

An allowance against deferred tax assets indicating that it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Trading Investments

Securities bought and held primarily for selling in the short term to profit from price differences.