Which of the Following Is a Fundamental Principle of NACVA's

question 39

Multiple Choice

Which of the following is a fundamental principle of NACVA's Professional Standards?

• A) Accept all assignments that can reasonably be completed within the time provided by clients.
• B) Always do exactly what a client wants no matter what the circumstances.
• C) Express an opinion with qualification that the member or a firm has financial interest or contemplated interest in the subject business.
• D) Serve the client's interest by seeking to accomplish the objectives established with the client, while maintaining integrity and objectivity.

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Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Payback Period

The time it takes for an investment to generate an amount of income or cash flows enough to cover the initial cost of the investment.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Net Cash Flows

The net amount of cash and cash equivalents moving into and out of a business within a specified period.