Which of the following statements regarding employer liability insurance under the workers compensation insurance coverage form is (are) true? I. Employer liability insurance covers an employee injury that occurs on the job but may not be considered work-related. II. If an injured employee sues a negligent third-party, and the third-party sues the employer for contributory […]
The portfolio beta is simply the sum of the betas of the individual stocks in the portfolio. Indicate whether the statement is true or false ANSWER FALSE
Issuing equity automatically hurts existing shareholders. Indicate whether the statement is true or false ANSWER FALSE
From a budgeting view, which of the following statements is not true concerning variances? A) A favorable expense variance means the budgeted amount was more than actual. B) Cumulative variance = current month’s variance + variances of previous months. C) Ideally, cumulative variances for the year will equal zero. D) Ideally, cumulative variances for the […]
A provision included in a claims-made commercial general liability policy provides coverage for claims filed after the policy has expired. This provision is called a(n) A) extended reporting period provision. B) agreed amount endorsement. C) retroactive date provision. D) per-occurrence limit clause. ANSWER Answer: A
Which of the following is (are) covered under a claims-made policy? I. Claims arising out of occurrences which take place during the policy period, regardless of when the claim is made II. Claims first reported during the policy period, provided the event occurred after a retroactive date stated in the policy A) I only B) […]
Auto Loans R Them loans you $24,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The annual interest rate on the loan is 9 percent. What is the monthly payment? A) $543.79 B) $563.82 C) $597.24 D) $500.92 ANSWER C
The ________ measure a firm’s performance over a specified period of time whereas a ________ provides a snapshot of the firm as of a specific date. A) income and balance sheets; cash flow statement B) balance sheet and cash flow statement; income statement C) income and cash flow statements; balance sheet D) None of the […]
Liability arising out of work performed by independent contractors is referred to as A) contractual liability. B) contingent liability. C) care, custody, and control liability. D) customer’s liability. ANSWER Answer: B
A favorable income variance indicates a monthly income A) equal to the budgeted monthly income. B) greater than budgeted monthly expenses. C) greater than budgeted monthly income. D) greater than accumulated income variances. ANSWER C
