The probability of a loss occurring can be reduced my loss prevention
Answer:
Unfavorable (increases taxable income).
Explanation:
$200,000-$50,000=$150,000Unfavorable (increases taxable income)
Book income would be $150,000 less than taxable income because the company increased its reserve for warranties by $200,000 and then went ahead to deduct $50,000 on its tax return related to warranty payments made during the year which is why the impact on taxable income compared to pretax book income of the book-tax difference that results from these two events will be $150,000 Unfavorable (increases taxable income).
Discrete is a bit more common according to Becker, so if you are torn between the two go with the discrete presentation. Also, if the boards are combined it is more likely to be blended; if they are separate, it is likely discrete (unless the entity only serves the government).
Answer:
B. Consumers
Explanation:
In business, consumers are the most vulnerable groups. Governments have enacted fraud laws to safeguard the rights of consumers. As enterprises seek profits, the laws seek to hold sellers accountable for the products or services they provide.
The laws provide mechanisms for consumers to fight back against abusive business practices. If unchecked, sellers may take advantage of consumers' ignorance and low bargaining power.
