A Manager's Superior Returns Could Have Occurred Due To

question 85

Multiple Choice

A manager's superior returns could have occurred due to:

• A) an insightful asset allocation strategy, over weighting an asset class that earned high returns.
• B) investing in undervalued sectors.
• C) selecting individual securities that earned above average returns.
• D) Choices a and c
• E) All of the above

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account, preparing the accounts for the next period.

Adjusted Trial Balance

A record comprising all accounts with their respective balances, updated following adjustment entries, which serves as a foundation for creating financial reports.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the next accounting period.

T Accounts

T accounts are a visual representation of individual accounts used in accounting to depict debits and credits for transaction entries.