Answer: ANSWER: Pure
Explanation: Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. ... Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well - even if there is no loss.
Answer:
$14,520 in check-able deposit liabilities and $117,480 in total reserves.
Explanation:
The bank has $132,000 in excess reserves and excess reserves ratio is 11%. The bank will have total reserves of $132,000 * 89% = $117,480. The total liabilities will be equivalent to the excess reserves which is $14,520 [$132,000 - $117,480].
C. Which option will maximize the family’s after-gas wealth?
Answer:
Journal Entry to record the transaction
Dr. Work in Process Department I $280,000
Dr. Work in Process Department II $300,000
Dr. Manufacturing Overhead $8,000
Cr. Material Inventory $588,000
Explanation:
The direct material is charged to the work in process account, because it is an direct expense and all the direct expenses are charged to the work in process account like indirect material, indirect labor etc.
The indirect material is charged to manufacturing overhead account because all the indirect expenses are charged to the manufacturing overhead account like indirect material, indirect labor etc.
These inventories are issued from the material inventory, so to deduct the issued value from the material inventory account, the total value of direct and indirect issuance is credited to record the effect.
