Choose the True Statement About Group Accounts and Subgroup Accounts

question 6

Multiple Choice

Choose the true statement about group accounts and subgroup accounts -

• A)the group account is selected when one account is the total for that name
• B)the subgroup selection is required when one account must stand alone
• C)the group accounts types are non- postable accounts
• D)the subgroup accounts are non-postable accounts

---

Definitions:

Unobservable Actions

Actions taken by individuals or entities that cannot be seen or monitored by others, often discussed in the context of economics or game theory.

Moral Hazard

A situation where one party is more likely to take risks because the negative consequences of the risk will be borne by another party.

Unobservable Actions

Actions taken by parties in a contract or agreement that cannot be directly observed or monitored by others.

Adverse Selection

A situation in which sellers have information that buyers do not, or vice versa, leading to an inefficient market outcome.