What Type of Risk Involves Only the Possibility of a Loss

question 205

Multiple Choice

What type of risk involves only the possibility of a loss?

• A) optimal risk
• B) pure risk
• C) risk transfer
• D) insurable risk
• E) speculative risk

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Definitions:

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.

Flow Of Accounting Data

The process by which financial information moves through an organization's accounting system to be documented and reported.

Ledger

A comprehensive collection of all accounts used by an organization, recording all financial transactions through debits and credits.