Lori, who is risk averse, has two pieces of jewelry, each worth $1,000. She plans to send them to her sister's firm in Thailand to be sold there. She is concerned about the safety of shipping them. She believes that the probability that any box shipped will not reach its destination is theta. Is her expected utility higher if she sends the articles together or in two separate shipments? Lori's expected utility is A. the same whether she sends the jewelry to Thailand in one box or in separate boxes. B. higher if she sends the jewelry to Thailand in one box regardless of her preferences for risk. C. higher if she sends the jewelry to Thailand in one box because she's risk averse. D. higher if she sends the jewelry to Thailand in separate boxes regardless of her preferences for risk. E. higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.