Which of the Following Should the Client Have as Part

question 1

Multiple Choice

Which of the following should the client have as part of its process for estimating fair value?

• A)A systematic process to identify each asset that is subject to realizable value estimation.
• B)A process to identify relevant historical values.
• C)An analysis of transactions that have taken place within the client's organization.
• D)A realistic process to estimate future cash flows to discount back to a present value.

---

Definitions:

Two-tailed Test

A statistical test hypothesis where the area of interest is in both tails of the probability distribution, testing for the possibility of an effect in two directions.

One-tail Area

The probability in the tail of a distribution in a one-tailed test.

P-value

The chance of witnessing outcomes from a test that are as extreme or more extreme than what was actually seen, given the presupposition that the null hypothesis holds.

Confidence Interval

A set of numbers resulting from the statistical examination of a sample, expected to encompass the value of an undetermined parameter of the overall population.