Junk bonds are bonds rated with a higher rate of default risk 

Daily Survival Kit Which of these (toothpick, eraser, pencil, rubber band) are u currently using or plan to use in the future?  

There are pro’s and con’s related to the Shadown banking system.  Which of the follwing is not a pro characteristic:

Indicate below if the provisions of the 2010 Dodd-Frank Financial Overhauls Act addressed the following players/contributions  to creating the  2008 Financial Crisis? Federal Reserve interest rate policy [a1] TBTF banks systemic risk [a2] Credit rating agencies conlflcit of interest risk [a3] Credit Default Swaps [a4] Abusive lending practices [a5] Financial innovation/liberalization [a6] Principal-agent problem of mortgage lenders/brokers taking advantage of illiterate borrowers [a7]

Investment banking takes on price risk when underwriting a IPO

The clause under the Sarbanes-Oxley Act of 2002 making it unlawful for a registered public accounting firm to provide non-audit services to a client contemporaneously with providing audit services is an example of separation of functions to prevent a conflicit of interest

According to the math PhD’s hired by the investment banks and credit rating agencies, huge amounts of risk disappeared when risky subprime loans were pooled together in a Collateralized Debt Obligation (CDO). The model showed that although some subprime loans would default at the same time, not all of them would default at the same time with the chances of 2/3 of the subprime loans defaulting at the same time being highly improbable, allowing the  CDO to be split into two tranches, a safer AAA rated 2/3 piece and a risky 1/3 piece, which would bear the first losses if and when loans in the pool defaulted. (a) Was this an innocent mistake, which surprised the banks, rating agencies, and investors or was it an intentional ruse, which generated phantom profits and bonuses as it sowed the seeds of financial destruction?  Why or why not? (b) Do U think the events would have unfolded differently if the financial institutions that made these subprime loans, and the Wall Street IB’s that pooled/securitized them and sold them to their clients, had been required to keep them in their portfolio?  Why or why not?

When recording estimated uncollectible accounts using the allowance method, the adjusting entry includes a

A customer charges a treadmill at Annie’s Sport Shop. The price is $4,000 and the financing charge is 6% per annum if the bill is not paid in 30 days. The customer fails to pay the bill within 30 days and a finance charge is added to the customer’s account. (360 days in a year) What is the amount of the finance charge?

Account receivable is recorded under the Liability section of the balance sheet.