Generally Accepted Accounting Principles Are

question 104

Multiple Choice

Generally accepted accounting principles are

• A)Required to make financial statement information relevant and faithfully represented.
• B)Only used by auditors.
• C)Only used for internal reporting.
• D)Not used in the real world.
• E)Only used for reporting to Canada Revenue Agency.

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Definitions:

Yield

The income generated by an investment, often expressed as a percentage of the investment's cost or market value.

Basis Points

A financial measurement unit representing the percentage shift in the value or rate of a financial asset, which is equal to one hundredth of a percent.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, expressed as an annual rate.

Duration

A measure of the sensitivity of a bond's or fixed income portfolio's price to changes in interest rates, often used to manage interest rate risk.