Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as Multiple Choice O O front-end loads direct operating expenses 12b-1 charges back-end loads
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- Under SEC rules, the managers of certain funds are allowed to deduct charges for advertising, brokerage commissions, and other sales expenses directly from the fund assets rather than billing investors. These fees are known as ____________. Group of answer choices front-end loads 12b-1 charges back-end loads direct operating expensesA few charged to compensate sales professionals for the marketing and advertising of funds share is know as a(n)Proprietary fund financial statements are prepared based on which one of the following basis of accounting? a. Cash basis of accounting b. None of the options c. Modified accrual basis of accounting d. Accrual basis of accounting
- Statement 1: ETFs charge relatively low management fees. Statement 2: All open-end funds charge front-end load fees. Statement 3: Some open-end funds do not charge front-end load fees. Statement 4: Closed-end funds do not charge any fees. Which of the above statements are most likely to be correct and incorrect? O Statement 1 is correct, and Statements 2, 3, and 4 are incorrect. None of the statements are correct. Statements 2 and 3 are correct, and Statements 1 and 4 are incorrect. O Statements 1 and 3 are correct, and Statements 2 and 4 are incorrect.Which of the following best describe the flow of funds in a financial market? *a. suppliers of funds to demanders of fundsb. Financial market to suppliers of funds to demanders of fundsc. demanders of funds to suppliers of fundsd. suppliers of funds to financial institutions to demanders of fundsWhich one of the following fund accounting required to prepare a statement of cash flow? a. Proprietary fund b. None of the options c. Fiduciary fund d. General fund
- For each of the following accounts indicate in which fund type it could be found. Select your answer from the following responses: A. Governmental funds only. B. Proprietary funds only. Bond Proceeds Long Term liability for Compensated Absences Deferred Inflows/Outflows of Resources Taxes Receivable Estimated Revenues Operating Revenues12b-1 fees are charged to pay for O management fees, such as the fund's management and transactions. operational expenses, such as printing and mailing, of a mutual fund. O taxes and regulatory fees, such as the SEC and FINRA fees and levies. O distribution expenses, such as sales, marketing, and advertising, of the fund.As of the October 2016 SEC rule changes, which money market fund will have a floating net asset value (NAV), redemption fees and redemption gates? Retail Government Tax-Exempt S. Treasury
- 8 The basis of accounting that should be used in preparing fund financial statements is: Governmental funds Proprietary funds Fiduciary funds A) Modified accrual Accrual Modified accrual B) Modified accrual Modified accrual Modified accrual C) Modified accrual Accrual Accrual D) Accrual Accrual Accrual Multiple Choice Choice A Choice B Choice C Choice DIdentify the letter that best describes the accounting and reporting by the following funds and account groups:1. Enterprise fund fixed assets.2. Capital projects fund.3. General fixed assets.4. Infrastructure fixed assets.5. Enterprise fund cash.6. General fund.7. Agency fund cash.8. General long-term debt.9. Special revenue fund.10. Debt service fund.a. Accounted for in a fiduciary fund.b. Accounted for in a proprietary fund.c. Accounted for in a quasi-endowment fund.d. Accounted for in a self-balancing account group and included in financial statements.e. Accounted for in a special assessment fund.f. Accounts for major construction activities.g. Accounts for property tax revenues.h. Accounts for payment of interest and principal on tax-supported debt.i. Accounts for revenues from earmarked sources to finance designated activities.j. Reporting is optional.Mf3. (a) In relation to the underlying risk insured, explain why the use of funds differs for general insurance companies and life insurance companies. (b) Insurance companies manage funds as a part of the business of providing insurance. Describe another type of managed fund discussed in the course and explain how this differs from an insurance company. In your answer give an example of a source and use of funds for this managed fund.