Northstar Insurance Is About to Begin Using a Program That

question 42

Multiple Choice

Northstar Insurance is about to begin using a program that will change the way its adjusters settle insurance claims.Adjusters will be able to complete an adjustment and issue a check right at the scene of the accident.Although employees are uncertain that the new system will work,other insurance agencies have been successful with this approach.At Northstar Insurance,the new program represents ________ change.

• A)motivated
• B)innovative
• C)adaptive
• D)radically innovative
• E)refusal to

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Definitions:

Pushdown Accounting

An accounting method where the purchase price of an acquired entity is pushed down onto the acquired entity's financial statements.

FASB Accounting Standards

Stands for Financial Accounting Standards Board Accounting Standards, which set the rules for financial accounting and reporting in the U.S.

Business Combinations

The process by which one company acquires control over another, resulting in the consolidation of assets and liabilities under one entity.

Fair Value

An estimate of the market value of an asset or liability, based on the price that two informed and willing parties would agree to in an arm's length transaction.