If there is a shortfall in interest paid to the senior tranches of a CDO, how is the shortfall made up?
What will be an ideal response?
If there is a shortfall in interest paid to the senior tranches, principal proceeds are used to make up the shortfall. However, the principal cash flow is distributed to the senior tranches only after the payment of the fees to the trustees, administrators, and senior managers.
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Management's regular assessment of its internal controls is called risk assessment
Indicate whether the statement is true or false
Which of the following describes the cash budget?
A) It aids in planning to ensure the company has adequate inventory and cash on hand. B) It captures the variable and fixed expenses of the business. C) It depicts the breakdown of sales based on terms of collection. D) It helps in planning to ensure the business has adequate cash.
Extreme dysfunctional thinking (i.e., black and white thinking) at the team level can lead to what type of evaluations?
a. Open-minded b. Ends of spectrum c. All aspects of spectrum d. None of the above
Which of the following is the proper time period in which to record a change in accounting estimate?
a. Current period and future periods b. Current period and retroactively c. Retroactively only d. Current period only