Using a Number of Outcome Estimates to Get a Sense

question 7

Multiple Choice

Using a number of outcome estimates to get a sense of the variability among potential returns is

• A) financial analysis.
• B) post-audit analysis.
• C) sensitivity analysis.
• D) outcome analysis.

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Definitions:

Accredited Investor

An individual or entity recognized as having the financial sophistication and capacity to bear the risk of investment opportunities that demand less regulatory disclosure.

Securities

Tradable financial assets including stocks, bonds, and options, which represent an investment and a means for entities to raise capital.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Accounting Standards

Rules and guidelines set by governing bodies that determine how financial transactions and statements are recorded and reported.