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The preparation and fair presentation of the FS requires preparation and fair presentation in accordance with framework inclusion of adequate description of the framework to obtain reasonable assurance

Davis, CPA, accepted an engagement to audit the financial statements of Tech Resources, a nonpublic entity. Before the completion of the audit, Tech requested Davis to change the engagement to a compilation of financial statements. Before Davis agrees to change the engagement, Davis is required to consider the:

The assumption that a company or other entity will be able to continue operating for a time that is sufficient to carry out its commitments and obligations

The acct process for reducing an amount by periodic payments or write downs - Correct AnswerAmortization The change in equity during a period from transactions & other events & circumstances from nonowner sources - Correct AnswerComprehensive income

Demand Curve Shift Upward (direct relationship-positive shift) - Correct AnswerThe price of subsitute goods, expectations of price changes, income for normal goods, and extent of market Demand Curve Shift Downward (inverse relationship-neg. shift) - Correct AnswerThe price of complement good, income for inferior goods, and consumer boycotts

Colonia has 2 political parties, the Wigs and the Wags. If the Wags are elected there is a 32% probability of a tax increase over the next 4 years. If the Wigs are elected there is a 60% probability of a tax increase. There is a 20% probability the that the Wags will be elected. The sum of the (unconditional) probability of a tax increase and the joint probability that the wigs will be elected and there will be no tax increase is closest to:

(4)Shareholders' equity reported on the balance sheet is most likely to differ from the market value of shareholders' equity because: - Correct AnswerB)Some factors that affect the generation of future cash flows are excluded. (8)All of the following are current assets except: - Correct AnswerB)goodwill.

IFRS Measure of Inventory - Correct Answerlower of cost and net realizable value NRV= estimated selling price - estimated costs of sale Interest coverage ratio from EBIT and NI - Correct AnswerEBIT/Interest (NI + Interest pmts + taxes paid) / Interest pmts

Liquidity Risk - Correct AnswerRisk of recieving less than fair value for an investment if it must be sold for cash quickly Required Interest Rate on A Security - Correct Answer= Nominal Interest Rate + Default Risk Premium + Liquidity Premium + Maturity Risk Premium

degress of price discrimination - Correct Answer1st degree-- know price that every consumer is willing to pay. 2nd degree-- price varies according to quanity demanded. sellers aren't able to distinguish classes or consumers. third degree-- charging different prices to different consumer groups. charging kids and adults differently. peak and off peak rates for electricity. disposition bias - Correct Answerloss aversion

Engle- Granger Test - Correct AnswerTest whether 2 variables are cointegrated. Regress 1 data series against the other and check residuals for unit root. Steady State of Growth Formula - Correct Answergrowth = Growth Rate TFP/1-(Labor cost in total factor cost) + labor force growth

Price change based on convexity -Correct Answer -duration(change in yield)+1/2(convexity)(change in yield)^2 Effective Duration -Correct Answer Required if a bond has embedded options: [(v-)-(v+)]/[2V0(change in curve)]

Current Ratio - Correct Answer Current Assets divided by current liabilities Quick Ratio - Correct Answer Cash plus marketable securities plus receivables divided by current liabilities Cash Ratio - Correct Answer Cash plus marketable securities divided by current liabilities

All of the following are among the tasks an underwriter will perform when evaluating a mortgage loan, EXCEPT: - Correct Answerarranging for a buyer's policy of title insurance Which of the following would NOT appear on an individual's credit report? - Correct AnswerUnpaid utility bills two years ago

The necessities, comforts and luxuries we have or desire is what? - Correct AnswerStandard of living Is the standard of living different for different people? - Correct AnswerYes, people have different experiences and different responsibilities. Needs, wants and desires chage as people get older and everyone is at different stages of their lives. Different people enjoy different things.

annual fee - Correct Answerfee charged by a credit card company for the use of their credit card annual percentage rate - Correct Answercost of borrowing money on an annual basis; takes into account the interest rate and other related fees on a loan ATM - Correct AnswerAutomatic Teller Machine-a bank machine that gives out cash from your account and accepts deposits around the clock.

average propensity to spend - Correct Answerthe percentage of each dollar of income, on average that is spent for current needs rather than savings. wealth - Correct Answernet total value of all the items the individual owns financial assets - Correct Answerintangible, paper assets, aka savings accounts and securities. earning assets held for returns.

What is an expense that you can choose to spend or can adjust? - Correct Answer flexible What do you give up when you decide to use credit cards? - Correct Answer You give up the ability to spend in the future in order to spend now

The process of developing and using financial ideas and methods to help you achieve financial success is called - Correct Answer Financial planning Your fundamental beliefs about what is important or worthwhile are - Correct Answer your values

Personal Finance - Correct Answer process of planning, spending, financing, and investing so as to optimize your financial situation Personal Financial Plan - Correct Answer A plan that specifies your financial goals and plans to achieve them