Contra-Accounts

question 89

Multiple Choice

Contra-accounts:

• A)are used to increase the original value of the account they offset.
• B)always appear in the same column of the trial balance as the account they offset.
• C)are used to decrease the original value of the account they offset.
• D)reduce the asset to its fair value.

Grasp the concept of ethical dilemmas and how they challenge moral values.

Acknowledge the influence of cultural perspectives on ethical standards and practices.

Recognize the importance of ethical questioning and reflection in resolving ethical dilemmas.

Understand the basic concepts of retirement planning including the need for savings and the impact of inflation.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.

High Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders, which is considered high relative to other companies or historical payouts.

Moral Hazard

The situation in which an entity has the incentive to take undue risks because the cost of those risks will be borne, at least in part, by others.