ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year
The variation between the rate of loss that ABC expects to occur and the rate of loss that actually occurs is called
A) objective probability.
B) subjective probability.
C) objective risk.
D) subjective risk.
Answer: C
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At the date of purchase, materials, equipment, facilities, and intangibles purchased from others that have alternative future uses in research and development should be
A) capitalized B) charged directly to retained earnings C) included in R&D expense immediately D) charged as a loss from continuing operations
It is important to reinforce key information in the text of the report with all of the following EXCEPT:
A) tables. B) graphs. C) pictures. D) maps. E) underlining.
Chancellor Company purchased merchandize worth $900 on credit, terms n/30 . What is the required journal entry to record the transaction under the perpetual inventory system?
a. Accounts Receivable 900 Purchases 900 b. Purchases 900 Merchandize Inventory 900 c. Merchandize Inventory 900 Accounts Payable 900 d. Accounts Payable 900 Merchandize Inventory 900
A translation adjustment resulting from the translation process is disclosed on the financial statements as
a. a separate component of stockholders' equity. b. a below-the-line item on the income statement. c. an adjustment to retained earnings. d. a part of income from operations on the income statement.