1. Mutual fund and hedge funds difference 2. Detailed explanation on balance sheet 3. Accrual journal entries 4. Subscription journal entry 4. Performance fee, management fees

Question

Accepted Answer

Mutual funds and hedge funds differ in their investment strategies and regulations. Balance sheet shows a company's financial position. Accrual journal entries record revenues and expenses when they are earned or incurred. Subscription journal entry records new investments in a fund. Performance and management fees are charges for managing a fund's assets.

Mutual funds are regulated investment vehicles that pool money from multiple investors to invest in securities, while hedge funds are typically private investment partnerships that use more complex strategies and are only available to accredited investors.
Balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.
Accrual journal entries record revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.
Subscription journal entry records new investments in a fund, typically debiting cash and crediting the fund's capital account.
Performance fees are charges based on a fund's investment performance, while management fees are ongoing charges for managing the fund's assets.

1. Mutual fund and hedge funds difference 2. Detailed explanation on balance sheet 3. Accrual journal entries 4. Subscription journal entry 4. Performance fee, management fees

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