In a Direct Reporting Engagement,the Assertions ________

question 39

Multiple Choice

In a direct reporting engagement,the assertions ________.

• A)must be in written form
• B)are expressed verbally
• C)may only be implied
• D)can be in written form or expressed verbally

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Definitions:

Nominal Rate

The stated interest rate of a bond or loan, not adjusted for inflation.

Compounded Annually

A method in which interest is calculated once per year and added to the total sum, affecting the principal for the next period.

Promissory Note

A promissory note is a financial instrument that contains a written promise by one party to pay another party a determinate sum of money either on demand or at a specified future date.

Compounded Semi-Annually

The method of calculating interest on a principal where the interest is computed twice a year and each interest payment is added to the principal for future calculations.