Exam (elaborations) AIAF 114 - Chapter 3 Exam Questions and Answers Exam (elaborations) Advanced Corporate Finance Quiz 1 AIAF114 Exam Test Guide Questions and Answers Exam (elaborations) Advanced Corporate Finance Chapter 1, 4, 8, 9, 5, 6, 10, 11, & 13 Exam Questions with Correct Answers Ex...
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Marcos is investing $5 today at 7 percent interest so he can have $35 later. This $35 is referred to as the: - ANSWER-Future Value Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 six years from now. Which one of the following terms refers to the $5,318 - AN...
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Add to cartMarcos is investing $5 today at 7 percent interest so he can have $35 later. This $35 is referred to as the: - ANSWER-Future Value Katlyn needs to invest $5,318 today in order for her savings account to be worth $8,000 six years from now. Which one of the following terms refers to the $5,318 - AN...
Savings Plan - ANSWER-- Is a strategy for using money to reach important goals and to advance your financial security. Emergency Fund - ANSWER-- Is an amount of money you can easily access in case of a job layoff, illness, or unexpected expense. SMART Goal - ANSWER-- Is something you want to a...
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Add to cartSavings Plan - ANSWER-- Is a strategy for using money to reach important goals and to advance your financial security. Emergency Fund - ANSWER-- Is an amount of money you can easily access in case of a job layoff, illness, or unexpected expense. SMART Goal - ANSWER-- Is something you want to a...
Which section of an insurance policy contains language to assist an insurance company in managing morale and moral hazards - ANSWER-The exclusions The funds assessed to be deposited into the NY Special Disability Fund are deposited with? - ANSWER-The Commissioner of Taxation and Finance Someon...
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Add to cartWhich section of an insurance policy contains language to assist an insurance company in managing morale and moral hazards - ANSWER-The exclusions The funds assessed to be deposited into the NY Special Disability Fund are deposited with? - ANSWER-The Commissioner of Taxation and Finance Someon...
A unique feature in a bailee form is that it covers A. A loss that has no exclusions B. The building occupied by the insured whether it is owned or leased C. Customers property whether or not the insured has been negligent D. Fire and theft losses to the insured stock held for sale without any...
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Add to cartA unique feature in a bailee form is that it covers A. A loss that has no exclusions B. The building occupied by the insured whether it is owned or leased C. Customers property whether or not the insured has been negligent D. Fire and theft losses to the insured stock held for sale without any...
Equation for contribution per unit - ANSWER-Sale price- (variable production costs+variable non-production costs) T or F: Profit = Total contribution - fixed cost - ANSWER-true Total contribution equation - ANSWER-Contribution per unit X units sold The receiving division is charged with the...
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Add to cartEquation for contribution per unit - ANSWER-Sale price- (variable production costs+variable non-production costs) T or F: Profit = Total contribution - fixed cost - ANSWER-true Total contribution equation - ANSWER-Contribution per unit X units sold The receiving division is charged with the...
When uncertainty exists, a conflict can arise between reliability and Select one: A. Completeness. B. Transparency. C. Lack of bias. D. Verifiability. - ANSWER-C. Lack of bias. Because accounting information must allow for comparisons between time periods and among entities, it must be, abov...
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Add to cartWhen uncertainty exists, a conflict can arise between reliability and Select one: A. Completeness. B. Transparency. C. Lack of bias. D. Verifiability. - ANSWER-C. Lack of bias. Because accounting information must allow for comparisons between time periods and among entities, it must be, abov...
What are two major reasons for analyzing financial statements? - ANSWER-Determine credit value and intrinsic value. Trade Creditors - ANSWER-Provide goods or services, bear risk of default, most short-term, and usually implicit interest Non-trade Creditors - ANSWER-Provide major financing, bea...
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Add to cartWhat are two major reasons for analyzing financial statements? - ANSWER-Determine credit value and intrinsic value. Trade Creditors - ANSWER-Provide goods or services, bear risk of default, most short-term, and usually implicit interest Non-trade Creditors - ANSWER-Provide major financing, bea...
Types of Inventory - ANSWER-must be periodically counted, valued, and recorded retail inventory raw materials inventory work in process inventory finished goods inventory Goods and Materials to be included in Inventory - ANSWER-general rule: any goods and materials in which the company has ...
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Add to cartTypes of Inventory - ANSWER-must be periodically counted, valued, and recorded retail inventory raw materials inventory work in process inventory finished goods inventory Goods and Materials to be included in Inventory - ANSWER-general rule: any goods and materials in which the company has ...
Major steps of project development and put them in the correct order from the start of a project to the end. - ANSWER-Planning, Design, Bid, Construction Identify the three key participants in a project team, as well as at least two other project participants. - ANSWER-Owner, designers (architect...
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Add to cartMajor steps of project development and put them in the correct order from the start of a project to the end. - ANSWER-Planning, Design, Bid, Construction Identify the three key participants in a project team, as well as at least two other project participants. - ANSWER-Owner, designers (architect...
A key accounting concept that an organization should be valued as if it will continue to operate indefinitely. This view is known as the - ANSWER-Going Concern Concept Statutory accounting adopts a conservative approach to valuing most assets and liabilities, resulting in a conservative statement...
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Add to cartA key accounting concept that an organization should be valued as if it will continue to operate indefinitely. This view is known as the - ANSWER-Going Concern Concept Statutory accounting adopts a conservative approach to valuing most assets and liabilities, resulting in a conservative statement...
Which of the following categories of principles is most closely related to gathering audit evidence? A.) performance B.) reasonable assurance C.) reporting D.) responsibilities - ANSWER-A Which of the following is not related to ethical requirements of auditors? A.) due care B.) in...
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Add to cartWhich of the following categories of principles is most closely related to gathering audit evidence? A.) performance B.) reasonable assurance C.) reporting D.) responsibilities - ANSWER-A Which of the following is not related to ethical requirements of auditors? A.) due care B.) in...
The purpose of all auditing procedures is to gather sufficient appropriate evidence for an auditor to form an opinion regarding the financial statements taken as a whole. In the table below, identify and describe means or techniques of gathering audit evidence used to evaluate a client's inventory ...
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Add to cartThe purpose of all auditing procedures is to gather sufficient appropriate evidence for an auditor to form an opinion regarding the financial statements taken as a whole. In the table below, identify and describe means or techniques of gathering audit evidence used to evaluate a client's inventory ...
Which one of the following best describes the concept of pooling? - ANSWER-The concept of pooling is that insureds share the cost of each other's losses As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on ins...
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Add to cartWhich one of the following best describes the concept of pooling? - ANSWER-The concept of pooling is that insureds share the cost of each other's losses As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on ins...
The method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching Deferral-Matching: Any prem charged on a policy before its effective date will be: - ANSWER--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for ...
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Add to cartThe method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching Deferral-Matching: Any prem charged on a policy before its effective date will be: - ANSWER--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for ...
The method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching Deferral-Matching: Any prem charged on a policy before its effective date will be: - ANSWER--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for ...
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Add to cartThe method most commonly used by PC insurers to recognize premium is - ANSWER--deferral-matching Deferral-Matching: Any prem charged on a policy before its effective date will be: - ANSWER--Deferred and not recognized as written premium until the effective date Deferral-Matching: Prem rev for ...
When accounting for accident-year losses for year 20X6, which one of the following would be included? - ANSWER-A reserve change in 20X7 for a loss that occurred in 20X6 Correct. When accounting for accident-year losses for year 20X6, a reserve change in 20X7 for a loss that occurred in 20X6 would b...
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Add to cartWhen accounting for accident-year losses for year 20X6, which one of the following would be included? - ANSWER-A reserve change in 20X7 for a loss that occurred in 20X6 Correct. When accounting for accident-year losses for year 20X6, a reserve change in 20X7 for a loss that occurred in 20X6 would b...
When premiums earned during any specific accounting period are less than incurred losses plus underwriting expenses incurred during the period, there will be an - ANSWER-Underwriting loss. A principal liability of insurers is the unearned premium reserve. Which one of the following statements bes...
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Add to cartWhen premiums earned during any specific accounting period are less than incurred losses plus underwriting expenses incurred during the period, there will be an - ANSWER-Underwriting loss. A principal liability of insurers is the unearned premium reserve. Which one of the following statements bes...
Five basic assertions of accounting - ANSWER-complete, valued correctly, exists, belongs to the company, and is properly classified, described, and disclosed Accounting information criteria - ANSWER-Understandability, Relevance, Reliability, Comparability and Consistency, Lack of Bias, and Cost-B...
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Add to cartFive basic assertions of accounting - ANSWER-complete, valued correctly, exists, belongs to the company, and is properly classified, described, and disclosed Accounting information criteria - ANSWER-Understandability, Relevance, Reliability, Comparability and Consistency, Lack of Bias, and Cost-B...
Generally Accepted Accounting Principles (GAAP) - ANSWER-A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation and reported results. Statutory Accounting Principles (SAP) - ANSWER-The accounting principles and pra...
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Add to cartGenerally Accepted Accounting Principles (GAAP) - ANSWER-A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation and reported results. Statutory Accounting Principles (SAP) - ANSWER-The accounting principles and pra...
Loss reserve - ANSWER-An estimate of the amount of money the insurer expects to pay in the future for losses that have already occurred and been reported, but are not yet settled. Loss adjustment expense (LAE) - ANSWER-The expense that an insurer incurs to investigate, defend, and settle claims a...
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Add to cartLoss reserve - ANSWER-An estimate of the amount of money the insurer expects to pay in the future for losses that have already occurred and been reported, but are not yet settled. Loss adjustment expense (LAE) - ANSWER-The expense that an insurer incurs to investigate, defend, and settle claims a...
Non-admitted assets - ANSWER-Types of property, such as office furniture and equipment, that regulators do not allow insurers to show as assets on financial statements because these assets cannot readily be converted to cash at or near their market value Admitted Assets - ANSWER-Assets meeting mi...
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Add to cartNon-admitted assets - ANSWER-Types of property, such as office furniture and equipment, that regulators do not allow insurers to show as assets on financial statements because these assets cannot readily be converted to cash at or near their market value Admitted Assets - ANSWER-Assets meeting mi...
Generally Accepted Accounting Principles (GAAP) - ANSWER-A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation of financial statements and reported results Statutory accounting principles (SAP) - ANSWER-The accoun...
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Add to cartGenerally Accepted Accounting Principles (GAAP) - ANSWER-A common set of accounting standards and procedures used in the preparation of financial statements to ensure consistency of presentation of financial statements and reported results Statutory accounting principles (SAP) - ANSWER-The accoun...
Some premium payment plans may include additional payments that exceed the amount required if the premium was paid in full at the policy inception. Such additional payments that are a function of the amount of premium payment are treated under U.S. regulatory accounting as - ANSWER-Finance charges. ...
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Add to cartSome premium payment plans may include additional payments that exceed the amount required if the premium was paid in full at the policy inception. Such additional payments that are a function of the amount of premium payment are treated under U.S. regulatory accounting as - ANSWER-Finance charges. ...
net income - ANSWER-the difference between total revenue and total expenses when total revenue is greater Assets - ANSWER-Money and other valuables belonging to an individual or business Liabilities - ANSWER-What a company owes expenses - ANSWER-the cost of assets consumed or services used ...
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Add to cartnet income - ANSWER-the difference between total revenue and total expenses when total revenue is greater Assets - ANSWER-Money and other valuables belonging to an individual or business Liabilities - ANSWER-What a company owes expenses - ANSWER-the cost of assets consumed or services used ...
Which of the following management responsibilities often involves evaluating the results of operations against the budget? A. Controlling B. Directing C. Planning D. None of the above - ANSWER-Controlling Which of the following is not one of Caesars Palace® Las Vegas' managers' three p...
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Add to cartWhich of the following management responsibilities often involves evaluating the results of operations against the budget? A. Controlling B. Directing C. Planning D. None of the above - ANSWER-Controlling Which of the following is not one of Caesars Palace® Las Vegas' managers' three p...
What is a partnership? - ANSWER-is an association 2 or more persons to carry on as co-owners of business assets Characteristic of a partnership - ANSWER-Mutual agency, Association of individual, Unlimited liability, limited life, co-ownership Forming a partnership account entry - ANSWER-Debt c...
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Add to cartWhat is a partnership? - ANSWER-is an association 2 or more persons to carry on as co-owners of business assets Characteristic of a partnership - ANSWER-Mutual agency, Association of individual, Unlimited liability, limited life, co-ownership Forming a partnership account entry - ANSWER-Debt c...
The steps of the accounting process are - ANSWER-Identification, recording, and communication Management and employees are - ANSWER-internal users taxing authorities, present creditors, and regulatory authorities are - ANSWER-external users which of the following statements about basic assu...
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Add to cartThe steps of the accounting process are - ANSWER-Identification, recording, and communication Management and employees are - ANSWER-internal users taxing authorities, present creditors, and regulatory authorities are - ANSWER-external users which of the following statements about basic assu...
FOB shipping point - ANSWER-Freight terms indicating that ownership of goods passes to the buyer when the shipping company accepts the goods from the seller. FOB destination - ANSWER-Freight terms indicating that ownership of goods remains with the seller until the goods reach the buyer. Net R...
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Add to cartFOB shipping point - ANSWER-Freight terms indicating that ownership of goods passes to the buyer when the shipping company accepts the goods from the seller. FOB destination - ANSWER-Freight terms indicating that ownership of goods remains with the seller until the goods reach the buyer. Net R...
Financial Accounting Standards Board (FASB). - ANSWER-The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC) - ANSWER-the agency of the U.S. government that oversees U.S. financial markets and accounting standard-setting bodies. In...
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Add to cartFinancial Accounting Standards Board (FASB). - ANSWER-The primary accounting standard-setting body in the United States is the Securities and Exchange Commission (SEC) - ANSWER-the agency of the U.S. government that oversees U.S. financial markets and accounting standard-setting bodies. In...
By examining relationships between items in the statement of cash flows, investors and creditors can do all of the following except: review cash investing and financing transactions during the period. determine reasons for the difference between net income and net cash provided by operating ac...
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Add to cartBy examining relationships between items in the statement of cash flows, investors and creditors can do all of the following except: review cash investing and financing transactions during the period. determine reasons for the difference between net income and net cash provided by operating ac...
Which is true regarding Long-Term Care Incontestability? A. All of the answers listed B. After 2 years the policy is incontestable C. After 6 months to 2 years the insurance company can contest the application only as it pertains to a loss claim D. First 6 months the insurance company can contes...
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Add to cartWhich is true regarding Long-Term Care Incontestability? A. All of the answers listed B. After 2 years the policy is incontestable C. After 6 months to 2 years the insurance company can contest the application only as it pertains to a loss claim D. First 6 months the insurance company can contes...
Goal of a Firm - ANSWER-o The goal of financial management in a for-profit business is to make decisions that increase the value of the stock, or, more generally, increase the value of the equity o Possible financial goals would be to survive, avoid financial distress and bankruptcy, beat the compe...
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Add to cartGoal of a Firm - ANSWER-o The goal of financial management in a for-profit business is to make decisions that increase the value of the stock, or, more generally, increase the value of the equity o Possible financial goals would be to survive, avoid financial distress and bankruptcy, beat the compe...
The treasurer and the controller of a corporation generally report to the: - ANSWER-chief financial officer A firm's capital structure refers to the firm's: - ANSWER-proportions of financing from current and long-term debt and equity Short-term finance deals with: - ANSWER-the timing of cash...
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Add to cartThe treasurer and the controller of a corporation generally report to the: - ANSWER-chief financial officer A firm's capital structure refers to the firm's: - ANSWER-proportions of financing from current and long-term debt and equity Short-term finance deals with: - ANSWER-the timing of cash...
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