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NEW QUESTION: 1
If the annual volatility of returns is 25% what is the variance of the quarterly returns?
A. 0.0156
B. 0.1250
C. 0.0625
D. None of the above
Answer: A

NEW QUESTION: 2
What does designing a country as being of "prime money laundering concern" allow the U.S. government to do?
A. Obtain transactional information from U.S.-owned subsidiary banks located outside the U.S.
B. Ensure the inclusion of that country into the office of Foreign Asset Control country sanctions programs
C. Close some or all correspondent or payable-through accounts
D. Ensure the inclusion of that country onto FATF's Non-Cooperative Country and Territory list
Answer: B

NEW QUESTION: 3
Roadrunner is a large motor-race track construction company. The finance director is working on the published accounts for the year ended 31 March 2013. The following cases have to be resolved before the accounts can befinalized.
(i)One of Roadrunner's customers using the tracks was injured during a race. The customer claims that the accident was Roadrunner's fault due to there being a cleft on track. Roadrunner's lawyers have advised that the customer has a very strong case, but will be unable to estimate the financial outcome until further medical evidence becomes available.
(ii)Roadrunner has recently expanded its overseas market building motor racing tracks in areas with no such activity. It is expected that the tracks will be abandoned in five years' time. At that point the tracks will need to be dismantled and the area restored to its original condition in accordance with current legislation. The estimated cost of restoration is expected to be $4 million. The cost of capital of the company is 10%.
Which of the following options is correct in relation to the above two facts in respect of Roadrunner?
A. (i) Should be treated as a contingent liability and disclosed in a note to the financial statements;
(ii)
A liability for the future costs should berecognizedimmediately
B. (i) A liability for the future costs should berecognizedimmediately;
(ii)
Should be treated as a contingent liability and disclosed in note to the financial statements
C. (i) A liability for the future costs should berecognizedimmediately;
(ii)
Should be treated as contingent liability
D. (i) A provision should be made;
(ii)
Should be treated as contingent liability
Answer: A