________ is the uncertainty that some unpredictable event will result in a loss.
A. Voluntary risk
B. Pure risk
C. Secondary risk
D. Speculative risk
Answer: B
You might also like to view...
A donated plant asset for which the fair value has been determined, and for which incidental costs were incurred in acceptance of the asset, should be recorded at an amount equal to its
a. incidental costs incurred. b. fair value and incidental costs incurred. c. book value on books of donor and incidental costs incurred. d. book value on books of donor.
In addition to reacting to customers, you can build goodwill by proactively enhancing customer relationships through social media
Indicate whether the statement is true or false.
In considering what is navigable waters, the Supreme Court ruled that
A. the definition of navigable water must include all ponds and lakes even if they are not connected to open bodies of water. B. waterways confined to one state can be navigable water if pollutants can leak into drinking water. C. the definition of navigable water excludes intermittent streams or wetlands. D. all waterways including wetlands, intermittent streams, and ponds are all navigable waters.
On January 1, 2018, Nichols Company acquired 80% of Smith Company's common stock and 40% of its non-voting, cumulative preferred stock. The consideration transferred by Nichols was $1,200,000 for the common and $124,000 for the preferred. There was no premium in the value of consideration transferred. Any excess acquisition-date fair value over book value is considered goodwill. The capital structure of Smith immediately prior to the acquisition is: Common stock, $10 par value (50,000 shares outstanding)$500,000 Preferred stock, 6% cumulative, $100 par value, 3,000 shares outstanding 300,000 Additional paid in capital 200,000 Retained earnings 500,000 Total stockholders' equity$1,500,000 ?The consolidation entry at date of acquisition will include (referring to Smith):
A. Debit Common stock $500,000, debit Preferred stock $120,000, and debit Additional paid-in capital $200,000. B. Debit Common stock $400,000, debit Preferred stock $300,000, debit Additional paid-in capital $200,000, and debit Retained earnings $500,000. C. Debit Common stock $400,000 and debit Additional paid-in capital $160,000. D. Debit Common stock $500,000 and debit Preferred stock $120,000. E. Debit Common stock $500,000 and debit Preferred stock $300,000.