Diversification

question 3

Multiple Choice

Diversification:

• A)reduces the likelihood that bad things will happen to you.
• B)reduces the chance that you'll be completely ruined by a single unfortunate event.
• C)increases the likelihood that bad things will happen to you.
• D)None of these are true.

---

Definitions:

Accrued Salaries

This refers to wages that have been earned by employees but have not yet been paid by the company.

Revenue Journal

A specialized accounting journal used to record the sales of goods and services and revenue generated.

Accounts Receivable

This term represents money owed to a business by its clients for goods or services delivered but not yet paid for.

Controlling Account

A general ledger account that summarizes the total amounts listed in a subsidiary ledger.