Higher Inherent Risk Traits Are Found Where _______

question 146

Multiple Choice

Higher inherent risk traits are found where _______.

• A)transactions or account balances are derived from significant estimates
• B)transactions or account balances are easily confirmed with reliable sources
• C)the client's industry is thriving
• D)the client's location has minimal risk of being affected by a natural disaster

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Definitions:

NPVGO

NPVGO (Net Present Value of Growth Opportunities) is a financial metric assessing the value of future investment opportunities, calculated as the net present value of projected cash flows from those investments.

Similar Investments

Investments that share comparable characteristics, risk profiles, or potential returns, facilitating the comparison and portfolio diversification.

Annual Dividend

Annual dividend refers to the total dividend payment a shareholder receives per share of stock owned in a company over the course of a year.

Rate of Return

The outcome, whether gainful or not, of an investment throughout an established period, expressed as a percentage of the investment's purchase cost.