The income effect of a change in reporting entity is shown separately in the income statement in the year of the change.

Insurance Brokerage Company uses a computer-based method of estimating the losses its clients will suffer if a severe storm or earthquake occurs. This method of estimating losses is called

A) capital budgeting. B) securitization of risk. C) risk mapping. D) catastrophe modeling.

Which of the following statements is true of a dirty float?

A) exchange rates fluctuate with occasional central bank intervention B) beneficial exchange rates are offered in trade with certain nations C) fixed exchange rates are set and maintained by the World Bank D) currency values rise and fall according to the U.S. dollar