A Common Reason Why a Government Might Receive a "Modified

question 45

Multiple Choice

A common reason why a government might receive a "modified opinion" from the external auditors is:

• A) A violation of generally accepted accounting principles was noted that does not cause material misstatement of the financial statements.
• B) A fund balance deficit in the General Fund.
• C) Poor internal controls such that the accounting records could not be audited.
• D) Expenditures exceeded appropriations in the General Fund.

Know how to calculate a bond's yield to maturity and yield to call.

Recognize the features and implications of callable bonds and convertible bonds.

Understand the role of bond ratings in assessing default risk.

Describe the impacts of interest rate changes on bonds' market value.

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