Which of the Following Are Categories of Assumptions Needed When

question 9

Multiple Choice

Which of the following are categories of assumptions needed when making projections of and discounting cash flows in different currencies?
I.Inflation assumptions.
II.Cash flow projections.
III.Forward exchange rates.

• A)I and II.
• B)I and III.
• C)II and III.
• D)I,II,and III.

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Definitions:

Assets

Economic resources controlled or owned by a business, which are expected to produce benefits or value in the future.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing what the owners truly own.

Revenue Recognition

The accounting principle dictating the conditions under which revenue is recognized and can be reported in financial statements.

Fraud

A deliberate deception to secure unfair or unlawful gain, often financial in nature. It can involve various schemes, including embezzlement, identity theft, and forgery.