QUESTION: 85

list can yield insight into the company's profitability, liquidity and even viability. However, many relatively small companies do not prepare them.

Receivables list
Aged receivables list
Prepaid expense list
Inventory list

Answer(s): B

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QUESTION: 86

The amount of detail desired in the inventory list varies from one appraisal to another, depending upon:

The inventory's importance to the valuation conclusion
The company's write-down value
To the extent to which inventory accounting methods vary within particular industry
The amount of inventory data to be gathered

Answer(s): A,C

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A valuation of the assets can even be important in _ in which a weighted average cost of capital method is used if the analyst uses the asset base as a determinant of the amount of debt that the company can support.

Labor-intensive companies
Capital-intensive companies
Blue chip companies
Growth companies

Answer(s): B

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QUESTION: 88

When it comes to related party transactions, it is important that the analyst gather:

As much information as is available in order to determine the nature of the transactions and their propriety
Related part transactions information
The list prepared that describes the terms of the transactions
Information regarding loans to and from related parties, leases, or purchases

Answer(s): A

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QUESTION: 85

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QUESTION: 88

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