_____ Is an Accounting Approach Based on Specific Accounting Requirements

question 66

Multiple Choice

_____ is an accounting approach based on specific accounting requirements set by governmental taxing agencies.

• A) Tax accounting
• B) Managerial accounting
• C) Benchmarking
• D) Forensic accounting

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Definitions:

Deductibles

The amount paid out of pocket by the policyholder before an insurance policy begins to cover expenses.

Consumer Surplus

The difference between the maximum price a consumer is (or consumers are) willing to pay for an additional unit of a product and its market price; the triangular area below the demand curve and above the market price.

Willing To Pay

The maximum amount an individual is prepared to spend to purchase a good or service or to avoid something undesirable.

Moral Hazard

A situation in economics where one party is willing to take risks because the costs that could result will not be borne by that party.