Ordinarily, which of the following procedures should be applied when an independent accountant conducts a review of interim financial information of a publicly held company?
A) Read the minutes of the board of directors' meetings.
B) Perform cutoff tests for cash receipts and disbursements.
C) Inspect the open purchase order file.
D) Verify changes in key account balances.
A) Read the minutes of the board of directors' meetings.
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A portfolio is made up of Stocks A, B, C, and D in the proportion of 20%, 30%, 25%, and 25% respectively. The nondiversifiable risks of the stocks as measured by their betas are 0.4, 1.2, 2.5, and 1.75 for Stock A, B, C, and D respectively. The expected returns of the stocks are 12%, 24%, 30%, and 28% respectively. Measure the beta of the portfolio.?
A. ?1.8 B. ?1.9 C. ?1.5 D. ?1.4 E. ?1.3
Which of the following is a reason for firms not using the payback method as a guideline in capital investment decisions?
A) It gives an explicit consideration to the timing of cash flows. B) It cannot be specified in light of the wealth maximization goal. C) It is a measure of risk exposure and projects the possibility of a calamity. D) It is easy to calculate and has intuitive appeal.
______ accidents are deliberate acts designed to disrupt or destroy systems and organizations.
A. Abnormal B. Deliberate C. Unfortunate D. Realistic
The purchase and sale of commodities for current delivery and consumption is known as dealing in the ____ market
a. Futures b. Spot c. Money d. Capital e. Options