Financial Management - Study Mode

[#206] An inventory recording in balance sheet includes
Correct Answer

(D) Both A and B

Explanation

Solution: An inventory recording in balance sheet includes First in first out and Last in first out.

[#207] Values recorded as determined in marketplace are considered as
Correct Answer

(A) market values

Explanation

Solution: Values recorded as determined in marketplace are considered as market values. Market value is the price an asset gets in a marketplace. Market value also refers to the market capitalization of a publicly traded company.

[#208] A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as
Correct Answer

(C) annuity

Explanation

Solution: A type of security payment in which payments are made at equal intervals of time and each payment amount is same is classified as annuity. An annuity is a financial product that pays out a fixed stream of payments to an individual. These financial products are primarily used as an income stream for retirees.

[#209] Greater chance of lower actual return than expected return and greater variation is indicated by
Correct Answer

(B) larger standard deviation

Explanation

Solution: Greater chance of lower actual return than expected return and greater variation is indicated by larger standard deviation. The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance. The greater the standard deviation of securities, the greater the variance between each price and the mean, which shows a larger price range.

[#210] Tendency of measuring correlation of two variables is classified as
Correct Answer

(C) correlation coefficient

Explanation

Solution: Tendency of measuring correlation of two variables is classified as correlation coefficient. The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.