Which One of the Following Statements Is Correct

question 100

Multiple Choice

Which one of the following statements is correct?

• A) The S&P 500 Index is based on 500 large companies that trade on U.S. exchanges.
• B) Because of mergers and bankruptcies, the S&P 500 Index no longer contains 500 stocks.
• C) The S&P 500 Index is carefully constructed to reflect the values of large, medium and small capitalization companies.
• D) The S&P 500 is based on the 500 largest U.S. companies as measured by market value.

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Definitions:

Research and Development

activities in connection with corporate or governmental innovation. R&D is a component of innovation and is situated at the front end of the innovation lifecycle.

Accumulation of Cash

Accumulation of cash refers to the process of systematically saving and collecting cash within a company for future use, often for investment, operational needs, or as a reserve.

Recognition of Depreciation

The accounting process of systematically allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Acquisition Cost

The total cost incurred to acquire an asset, including the purchase price and related expenses.