LCM RULE Definition

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LCM RULE is an abbreviation for lower-of-cost-or-market rule. LCM requires that an asset be reported on the financial statements at the lower of purchase cost or market value.

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MONEY MARKET FUND is a fund that invests in various short-term debt instruments, i.e., commercial paper, negotiable certificates of deposit, bankers acceptances, Treasury bills, etc. Shares seek to maintain a net asset value of $1 but the interest rate changes daily.

PROFIT & LOSS ACCOUNT shows the net profit which is left after all relevant business expenses have been deducted.

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