CAST Practice Questions

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NEW QUESTION: 1
Which of the following is a typical way for a high-density venue AP overlay? (Multiple Choice)
A. Wall cover
B. Penthouse cover
C. Base cover
D. Ceiling cover
Answer: A,B,D

NEW QUESTION: 2
A has an opportunity to invest $90,000 in a project that is expected to generate annual cash inflows of $60,000 for each of the next three years. The project's beta coefficient implies a discount rate of 12% for this project, based on a risk-free rate of return of 3%.
A is prepared to forego the expected cash flows from this project in return for a guaranteed payment of $50,000 at the end of year 1, $42,000 at the end of year 2 and $30,000 at the end of year 3.
What is the certainty equivalent value of this opportunity to A?
A. $25,606
B. $9,493
C. $115,606
D. $54,120
Answer: A

NEW QUESTION: 3
If X is divisible by 4, is Y odd?
(1) Y = x + 3.
(2) X = 4.
A. Statements (1) and (2) TAKEN TOGETHER are NOT sufficient to answer the question, requiring more data pertaining to the problem.
B. Statements (1) and (2) TAKEN TOGETHER are sufficient to answer the question, even though NEITHER statement BY ITSELF is sufficient.
C. Either statement BY ITSELF is sufficient to answer the question.
D. Statement (1) BY ITSELF is sufficient to answer the question, but statement (2) by itself is not.
E. Statement (2) BY ITSELF is sufficient to answer the question, but statement (1) by itself is not.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
From the question one can conclude that x is even. From statement one: an even number + odd number is an odd number. Thus, y must be odd. Statement two doesn't mention y at all, and is therefore insufficient

NEW QUESTION: 4
A service entity keeps its accounting records on a cash basis. During the recent year the entity collected US $600,000 from customers. The following information is also available:

What was the amount of service revenue for the year on an accrual basis?
A. US $555,000
B. US $645.000
C. US $675.000
D. US $525.000
Answer: B
Explanation:
The amount of service revenue for the year on an accrual basis equals US $645,000$600,000 cash collected - $15,000 unearned revenue + $60,000 increase in accounts receivable).