Which of the Following Is an Example of the "Micro-Macro

question 124

Multiple Choice

Which of the following is an example of the "micro-macro dilemma?"

• A) A homeowner purchases a ladder but falls off it because he didn't set up the ladder according to the safety instructions posted on it.
• B) A person gets a speeding ticket because she was talking on her cell phone while driving and didn't notice a speed limit sign.
• C) A person drives without fastening his seat belt even though a warning light and chime remind him to "buckle up."
• D) A person is injured while using a power lawn mower because of a small stone that is hurled from the discharge chute.
• E) A restaurant owner uses plastic containers to keep "take-out" food warm for customers, but the containers cannot be reused or recycled.

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Definitions:

Book Value Account

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus depreciation or amortization.

Carrying Amount

The recorded book value of an asset or liability in the financial statements, after accounting for depreciation, amortization, and impairment.

Bonds Issued

The total number of bonds that a company or government has sold to investors but has not yet redeemed.

Effective Interest Method

An accounting practice used to amortize bond premiums or discounts over the life of the bond in a way that reflects a constant rate of interest.