If choices are the following,
a. A heuristics
b. An algorithm
c. A mental set
d. Insight
then the choice (a) should be the correct answer. Heuristics is something that someone has already mastered for a long time that even one glance or sight he/she can determine what is the problem and be able to offer a solution. The above question is an example of familiarity heuristics.
Answer:
- Dr Dividends Declared 12,300
- Cr Dividends Payable 12,300
Explanation:
First we must determine how many shares are outstanding:
23,000 shares issued - 5,000 shares held= 18,000 shares outstanding
Then we multiply shares outstanding times dividends per share:
18,000 shares outstanding x $0.70 per share = $12,300
- Dr Dividends Declared 12,300
- Cr Dividends Payable 12,300
Answer:
D.All of the above are correct.
Explanation:
Moral hazard is when people have an incentive to engage in risky behaviours when the person is protected against the consequences of such risky behaviour. Moral hazard can arise in health insurance because once insured, a person has less incentive to adopt a healthy lifestyle.
Adverse selection occurs due to asymmetry of information; when one party in a transaction has more information than the other party. An example of adverse selection In insurance - people who have dangerous jobs are more likely to purchase insurance when compared with people with relatively safer jobs. Adverse selection in health insurance is when healthiest people choose to be uninsured, at least during their younger years and become insured when they are getting older and more sickly.
I hope my answer helps you.
Answer:
Purchase discounts is a contra revenue account. Revenue accounts carry a natural credit balance; purchase discounts has a debit balance as a contra account. On the income statement, purchase discounts goes just below the sales revenue account.
