Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.
Fill in the blank(s) with the appropriate word(s).
mitigating
Reducing risk is usually the first alternative considered. There are basically two strategies for mitigating risk: (1) reduce the likelihood that the event will occur and/or (2) reduce the impact that the adverse event would have on the project. Most risk teams focus first on reducing the likelihood of risk events since, if successful, this may eliminate the need to consider the potentially costly second strategy.
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The Uniform Commercial Code (UCC) gives the parties great flexibility in deciding between themselves how a contract will be performed.
Answer the following statement true (T) or false (F)
Depreciation and amortization affect both net income reported in the financial statements and taxable income on tax returns. Which of the following is /are true?
a. Taxing authorities in most jurisdictions specify allowable depreciation methods for tax reporting. b. When permitted to do so by the taxing authority, firms often use different depreciation methods for financial and tax reporting. c. The difference between depreciation expense in the financial statements and the depreciation deduction on the tax return leads to an issue in accounting for income taxes. d. all of the above e. none of the above
Firms account for leases using either the operating lease method or the capital (finance) lease method. Which of the following is not true?
a. The operating lease method treats leases as executory contracts. b. The operating lease method does not recognize a leased asset on the lessee's balance sheet. c. The operating lease method does not recognize a lease liability on the lessee's balance sheet. d. Under the operating lease method, the lessor does not recognize rent revenue as the lessee uses the leased asset over time. e. Under the operating lease method, the lessee recognizes rent expense as the lessee uses the leased asset over time.
Principal components of a master budget include which of the following?
A) Production budget B) Sales budget C) Capital expenditures budget D) All of the above