According to Gray,Owen and Adams,accountability Involves

question 35

Multiple Choice

According to Gray,Owen and Adams,accountability involves:

• A) The responsibility to provide an account of an entity's actions.
• B) The expectation that entities will undertake responsibility for the financial and economic effects of their actions.
• C) The responsibility to undertake certain actions (or to refrain from taking actions.
• D) The responsibility to provide an account of an entity's actions and the responsibility to undertake certain actions (or to refrain from taking actions.
• E) All of the given answers.

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Definitions:

Future Cash Flows

Future cash flows refer to the estimated amount of money that is expected to be received or paid out by a company in future periods.

Sinking Fund

Facilitates the orderly retirement of a bond issue. This can be achieved in one of two ways: the company can call in for redemption (at par value) a certain percentage of bonds each year or the company may buy the required amount of bonds on the open market.

Equilibrium

The condition under which the intrinsic value of a security is equal to its price; also, its expected return is equal to its required return.

Yield Curve

The curve that results when the yield to maturity is plotted on the y-axis with term to maturity on the x-axis.