What Is the Name of the Type of Insurance That

question 2

Multiple Choice

What is the name of the type of insurance that can be purchased in the event a government may move against an exporter?

• A) credit risk insurance
• B) political risk insurance
• C) commercial risk insurance
• D) sovereign risk insurance

Understand and apply the equity method for accounting for investments.

Prepare journal entries related to equity method investments including initial recognition, recognition of investee's net income or loss, and dividends received.

Calculate and defer gross profit on inter-entity inventory sales and recognize it appropriately in subsequent periods.

Determine the fair value of investments and adjustments for excess cost over book value attributable to specific intangible assets and goodwill.

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Definitions:

Error

A mistake in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, or insufficient knowledge.

Judgment

The ability to make considered decisions or come to sensible conclusions based on a comprehensive analysis of available information.

Association Heuristic

A mental shortcut that relies on the immediate connections between two concepts or objects in the mind to make a decision or solve a problem.

Error

A mistake or discrepancy from accuracy or correctness in reasoning, action, or calculation.