Which of the following is not a risk that is generally considered
in evaluating a transfer...
Which of the following is not a risk that is generally considered
in evaluating a transfer price. A market risk. B. Financial risk.
C. Political risk. D. Collections risk
Solutions
Expert Solution
Political risk is not a risk that is generally considered in
evaluating transfer price. Rest all the other risks are considered
while evaluating a transfer price.
Which of the following is generally considered to represent the
risk-free return?
A. common stocks
B. small stocks
C. long-term corporate bonds
D. treasury bills
1. Which of the following is not an example of a risk transfer
technique?
a. the purchase of insurance from a commercial insurance
company
b. the purchase of a futures contract to hedge against an
increase in the price of a commodity
c. a firm’s decision to self-insure the costs of medical expense
benefits owed to workers injured on the job
d. all the above are examples of risk transfer techniques
Accounting Information SystemsWhich of the following is not considered a risk inherent in the
expenditure cycle?A. Collusion between vendor and receiving clerkB. Intentional errors in ordering goods by purchasing clerkC. Unintentionally errors in recording items receivedD. Shipping goods to mailing address and not shipping
addressWhen proper segregation of duties is in place fraud is likely to
occur; however segregation of duties can be thwarted through
..............?A. ReconciliationB. Machine FailureC. ConfidenceD. CollusionContinuous monitoring is the process and technology used to
identify...
12. Which of the following contracts can transfer both credit
risk and market risk to the counterparty?
(a) Credit default swap
(b) Total return swap
(c) a and b of the above
Answer:
Which one of the following statements would generally be
considered as accurate given independent projects with conventional
cash flows?
The profitability index rule cannot be applied in this
situation.
The payback decision rule could override the net present value
decision rule should cash availability be limited.
Business practice dictates that independent projects should have
three distinct accept indicators before a project is actually
implemented.
The internal rate of return decision may contradict the net
present value decision.
The projects cannot...
A taxpayer is considered to be at risk under the at risk rules
for which of the following and under what section of the Code?
a. money borrowed by another for which payment is guaranteed by
the taxpayer; Code Section 469(a).
b. money borrowed by the taxpayer from another who has an equity
interest in the taxpayer’s business; Code Section 61.
c. qualified nonrecourse financing; Code Section 469.
d. qualified nonrecourse financing; Code Section _____(if you
conclude none of a,...
Which of the following is considered a part of
financial risk?
a.
Demand variability
b.
Sales price variability
c.
The extent to which operating costs are fixed
d.
The ability to change prices as costs change
e.
Changes in interest rates on debt
Which of the following assets is considered to be default-risk
free?
Select one:
a one-year municipal bond.
a share of stock issued by Tesla.
a two-year Treasury note.
a ten-year bond issued by Walmart.