In Which Country Would IBM Attach the Highest Business Risk

question 20

Multiple Choice

In which country would IBM attach the highest business risk premium?

• A) Iran
• B) Japan
• C) Canada
• D) U.S.A.

---

Definitions:

Utilities Expense

Costs incurred by a business for basic services such as electricity, water, and gas, classified under operating expenses in the income statement.

Owner's Drawings

Funds taken out of a business by the owner in a sole proprietorship or partnership for individual purposes.

Capital Account

An account showing the net worth of a business at a specific point in time, comprised of the owner's equity, investments, and retained earnings.

Correcting Entry

A journal entry made to amend a previously recorded incorrect transaction in the financial records.