Uncertainty Based on a Person's Mental Condition or State of Mind

question 19

Multiple Choice

Uncertainty based on a person's mental condition or state of mind is known as

• A)objective risk.
• B)subjective risk.
• C)objective probability.
• D)subjective probability.

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Definitions:

Fiscal Period

A specific duration of time for which a business or government reports its financial performance, could be a quarter, a year, or any other defined period.

Salaries

Payments made to employees typically on a monthly or biweekly basis for their work or services.

Insurance

A contractual arrangement in which a company (insurer) provides compensation or coverage against losses or damages in return for payment of a premium.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditures to the appropriate period.