Answer: Moral hazard
Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.
There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.
Thus, from the above we can conclude that the correct option is A .
<span>An expert witness would be the answer you're looking for. </span>
Answer:
The buyer would have a 12-day option to terminate the contract. Otherwise, he or she might not have any other option than to stick to the contract. (That is, the buyer will not have the unrestricted right to terminate the contract again.)
Explanation:
Answer:
B is the correct option, because it indicates that rent expense was only recognized in the books of account when paid for in cash.
Explanation:
Cash basis of accounting simply implies that an organization that adopts it recognizes income when received and expense when paid for in cash.
The above is different from accrual basis,where income is recognized when earned(when obligation is discharged by the seller) and expense when incurred(when the goods involved or services have been received)
All other options except B have something to do with payment on account,hence they are wrong.
Answer: c. Difference in budgeted costs and actual costs of fixed overhead items.
Explanation:
If a company uses a Predetermined rate for Manufacturing Overhead this means that they have budgeted a certain cost of overhead that they believe will be sufficient for production. This is usually possible for fixed overhead items.
The Variance therefore would be the difference between this budgeted figure and the actual figure for the fixed Overhead items.
