Pat Has Just Graduated from College and Has Two Job

question 125

Multiple Choice

Pat has just graduated from college and has two job offers.One pays $45,000 and requires that Pat supervise employees doing construction work on a busy highway.The other is an office job that pays $40,000.Chris has received the same offers from the same firms.Pat values the added safety of the office job at $6,000 per year and Chris values the added safety of the office job at $3,000 per year.
Pat is more ____ than Chris.

• A)risk averse
• B)vulnerable to adverse selection
• C)careful
• D)rational

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Definitions:

Deposit Method

An accounting approach used for recognizing revenue and expenses related to transactions where payment is received before the delivery of goods or services.

Sales Price

The amount of money for which a product or service is sold in the marketplace.

Significant Production

Significant production describes a level of manufacturing or output that markedly influences a company's overall capacity and inventory levels.

Revenue Recognition

The accounting rule that specifies the particular scenarios in which revenue is acknowledged or recorded.