In which of the following insurance pools would there be no subsidization?

Holding all other factors constant, a firm that is subject to a greater level of business risk should employ more financial leverage than an otherwise equivalent firm that is subject to a lesser level of business risk

Indicate whether the statement is true or false

Financial information exhibits the characteristic of consistency when

a. accounting procedures are adopted which smooth net income and make results consistent between years. b. extraordinary gains and losses are shown separately on the income statement. c. accounting entities give similar events the same accounting treatment each period. d. expenditures are reported as expenses and netted against revenue in the period in which they are paid.