The possibility that errors in projected cash flows can lead to incorrect NPV estimates is called:

A) Forecasting risk.
B) Projection risk.
C) Scenario risk.
D) Monte Carlo risk.
E) Accounting risk.

A subtle communication feature of computer-generated data is that it is relatively easy to convince company officials, such as bankers and credit card officials, that the data are incorrect and you are right.

Decoding can be defined as the process by which messages are put into symbolic form.

The person or company promising to pay the note plus interest when it comes due is known as the

A) drawee.
B) creditor.
C) maker.
D) payee.

Susan has lost her appeal in her state supreme court on a matter concerning a question of pure state law. She wishes to appeal to the U.S. Supreme Court. Susan:

A) Can appeal because her case has already been heard in the court of last resort in her state.
B) Cannot appeal because cases arising in state court can never be heard in federal court.
C) Cannot appeal because cases arising in state court can never be heard in the U.S. Supreme Court.
D) Cannot appeal because her case has not yet been heard in a U.S. District Court.
E) Cannot appeal because the U.S. Supreme Court will not hear cases considering questions of pure state law.

What is the effect on the financial statements when a company fails to accrue wages expense at year-end?

A) Net income is overstated and liabilities are understated.
B) Expenses are understated and stockholders' equity is understated.
C) Expenses and liabilities are both overstated.
D) Net income is overstated and liabilities are properly reported.