Compute the Consolidated Equipment (Net) Account at December 31, 2018

question 15

Multiple Choice

Compute the consolidated equipment (net) account at December 31, 2018.

• A) $2,100.
• B) $3,500.
• C) $3,300.
• D) $3,000.
• E) $3,200.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.

Business Risk

The potential for loss or failure in the operation of a company, often due to external and internal factors.