The Net Asset Value of a Mutual Fund Increased from $12.03

question 116

Multiple Choice

The net asset value of a mutual fund increased from $12.03 to $13.53, but its price per share increased by only $1.26. This information indicates that the fund

• A) paid out $1 in capital gains.
• B) paid out $1 in dividends.
• C) is a closed-end fund.
• D) is an open-end fund.

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Definitions:

Unearned Service Revenue

Income received by a company for services yet to be performed, treated as a liability until the services are provided.

Supplies Expense

The cost associated with consuming supplies over a specific accounting period, impacting the income statement.

Accrued Interest Expense

The amount of interest that has been incurred but not yet paid during a particular period.

Adjustments

Entries made in accounting records to correct errors or allocate revenues and expenses to the appropriate accounting period.