Which of the Following Is Most Likely to Be a Feature

question 38

Multiple Choice

Which of the following is most likely to be a feature of a state-contingent contract?

• A)The agent pays the principal a higher licensing fee when demand is high compared to when demand is low.
• B)The agent makes the same wage regardless of demand.
• C)The agent, who lives in Nevada, earns more money on out-of-state sales (e.g., sales to California or New York)than in-state sales.
• D)The restaurant owner (principal)pays the waiter (agent)more when it is snowing or raining outside.

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Definitions:

FVTPL Securities

Financial assets designated at fair value through profit or loss, with changes in fair value recognized in the profit or loss as they occur.

Net Income

The company's earnings following the deduction of all costs, taxes, and expenses from the overall income.

FVTOCI Investments

Financial assets classified as fair value through other comprehensive income; adjustments to their fair value don't affect profit or loss but other comprehensive income.

IFRS 9

An International Financial Reporting Standard that deals with the accounting for financial instruments, covering the classification, measurement, and recognition of financial assets and liabilities.