The Difference Between Standard Deviation and Value at Risk Is

question 22

Multiple Choice

The difference between standard deviation and value at risk is:

• A)Nothing, they are two names for the same thing
• B)Value at risk is a more common measure in financial circles than is standard deviation
• C)Standard deviation reflects the spread of possible outcomes where value at risk focuses on the value of the worst outcome
• D)Value at risk is expected value times the standard deviation

Calculate inventory turnover and days in inventory.

Understand and apply the lower-of-cost-or-market principle for inventory valuation at year-end.

Explain the consequences of incorrectly recording inventory on financial statements.

Identify the effects of different inventory costing methods on financial statements.

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Definitions:

Ego

The component of the mind in psychoanalytic theory that mediates between the unconscious desires of the id and the moral constraints of the superego.

Present Behavior

The current actions or mannerisms exhibited by an individual, as observed or reported at a given time.

Conscious Plans

Thoughtfully considered actions or decisions one intends to carry out, fully aware and deliberate.

Perseverative Functional Autonomy

A psychological concept referring to repetitive behaviors that continue because they have become habits or have intrinsic value, not because they are driven by the original motives.