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
Date: September 19th, 2020
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
Date: September 19th, 2020
Examples of uses of cash include A) selling machinery. B) paying cash dividends to stockholders. C) borrowing an additional amount using a secured loan. D) all of the above ANSWER B
Date: September 19th, 2020
Because risk is measured by variability of returns, how long we hold our investments does not matter very much when it comes to reducing risk. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A customer was injured when a furnace exploded following its faulty installation by a heating and cooling business. For the heating and cooling business, this is an example of A) contingent liability. B) completed operations liability. C) products liability. D) contractual liability. ANSWER Answer: B
Date: September 19th, 2020
Which of the following exposures is covered under a Commercial General Liability Policy with no endorsements? A) liability arising out of seepage of pollutants B) employment-related practices liability C) personal injury liability D) aircraft liability ANSWER Answer: C
Date: September 19th, 2020
Which of the following are characteristics of a limited partnership? A) General partners have unlimited liability. B) There must be one or more general partners. C) Limited partners may not participate in the management of the limited partnership. D) all of the above ANSWER D
Date: September 19th, 2020
Your firm’s sales are estimated to decrease by 10% in the next year. However, soon after the beginning of the year it becomes apparent that the reduction in sales is more likely to be 20%. If your cost of good sold consists of only fixed expenses, which of the following situations would you expect to […]
Date: September 19th, 2020
You sell valuable artifacts from your household estate for $200,000 and want to use the money to supplement your retirement. You receive the money on your 60th birthday, the day you retire. You want to withdraw equal amounts at the end of each of the next 25 years. What constant amount can you withdraw each […]
Date: September 19th, 2020
The Commercial General Liability (CGL) Policy covers liability for which of the following loss exposures? I. Bodily injury of an employee of the insured arising out of and in the course of employment II. Bodily injury of a customer injured by a defective product manufactured by the insured A) I only B) II only C) […]
Date: September 19th, 2020
