The certainty equivalent for risk-averse people who buy insurance is the
A) maximum loss they may sustain.
B) expected loss they may sustain.
C) insurance premium they pay.
D) profit the insurance company earns.
C
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Bridget prefers rule-regulated, orderly, and unambiguous activities. She doesn't have a lot of imagination but could be described as conforming and efficient. Which of the following describes Bridget's personality?
A. social B. artistic C. enterprising D. conventional
Which of the following is correct?
a. The fair value of internally generated intangible assets should be estimated and recorded on the books of the entity that developed the assets even in the absence of a business acquisition. b. The fair value of internally generated intangible assets may be estimated but should not be recorded on the books or displayed on the financial statements of the entity. c. Managers may value their own companies and recognize goodwill in the company accounts even though an entity has not been acquired in a business acquisition. d. Goodwill should be recognized in the accounts whenever the value of the firm increases based on current market prices of the firm's common stock.
Which of the following possible measurement bases listed by the IASB in the most prevalent?
a. Present value b. Exit value c. Replacement cost d. Historical cost
What is the meaning of "par value" of stock?
What will be an ideal response?