In Which of the Following Situations Will a State Make

question 56

Multiple Choice

In which of the following situations will a state make an award of workers' compensation to an injured worker,if the state is using an "increased risk" test to define the relationship between an injury and the nature of employment?

• A)A secretary is assaulted by a trespasser in an accounting firm.
• B)A security guard employed by a software company is assaulted by a trespasser.
• C)Two employees engage in an arm wrestling match and are injured as a result.
• D)An employee attempts to impress his co-worker by placing a lit match close to his hand and is burned as a result.

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Definitions:

Historical Cost Principle

An accounting principle that states all assets should be recorded and accounted for based on their original purchase cost.

Discount on Bonds Payable

An amount by which a bond is sold below its face value, reflecting the difference between the market rate of interest and the bond's coupon rate.

Market Volatile

A description of how significantly and frequently the price of assets, securities, or commodities can change in a market.

Bonds Mature

The point in time when a bond's principal amount is due to be paid back to bondholders, ending the bond's life.