Risks and Uncertainties

Question 1

What are some sources of risk and uncertainty?

Answer 1

The nature of the entity’s ops, use of estimates, market vulnerabilities, going concern issues

Question 2

Management has to continually assess its own ability to continue as a going concern. TF

Answer 2

True

Question 3

Nature of operations risk includes an assessment of a knowledge of the firms products and services, geographical locations, and _____ _____.

Answer 3

Principal markets

Question 4

Material estimates may or may not need to be disclosed. TF

Answer 4

False, must be

Question 5

Significant concentrations are aspects with _______ diversification.

Answer 5

Insufficient, these must be disclosed if they exist at the balance sheet date, make the entity vulnerable, and is “reasonably possible”

Question 6

Government regulations are a source of risk needed in disclosures. TF

Answer 6

False

Question 7

The new and old estimates in quantitative terms are required to be disclosed. TF

Answer 7

False