The business income and extra expense coverage form covers loss of business income and continuing normal operating expenses. How is business income (revenue) defined? A) total sales B) total sales less cost of goods sold C) pre-tax net profit D) after-tax net income ANSWER Answer: C
Date: September 19th, 2020
S-type corporations and limited liability companies are taxed like partnerships, but have the advantage of limited liability for their owners. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An Inter-Ocean Transfer cargo ship was forced to jettison some cargo in heavy seas. The various interests in the voyage at the time the property was jettisoned were If $400,000 worth of iron ore was jettisoned, for how much of this amount would Inter-Ocean Transfer be responsible under general average? A) nothing B) $160,000 C) […]
Date: September 19th, 2020
Based on the information in Table 4-2, the average collection period is A) 127 days. B) 70 days. C) 89 days. D) 81 days. ANSWER D
Date: September 19th, 2020
Rick is risk manager of Herald News, a daily newspaper in a competitive market. Rick wants to make sure that if Herald’s printing facility is damaged or destroyed, the paper will continue to be published. What type of insurance can Rick purchase to cover the added cost of continuing to print the paper after a […]
Date: September 19th, 2020
Based on the information in Table 4-2, the acid-test ratio is A) 2.15. B) 1.39. C) 1.33. D) 1.17. ANSWER D
Date: September 19th, 2020
It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest […]
Date: September 19th, 2020
Which of the following statements about the businessowners policy is (are) true? I. It is designed to meet the insurance needs of large manufacturing firms. II. It is a package policy designed to meet the basic property and liability needs of an insured in a single contract. A) I only B) II only C) both […]
Date: September 19th, 2020
Use the following information to calculate the change in the company’s cash balance for the year. Credit Sales $800,000 Cash Sales $500,000 Operating Expenses on Credit $200,000 Cash Operating Expenses $700,000 Accounts Receivable (Beg. of Year) $50,000 Accounts Receivable (End of Year) $80,000 Accounts Payable (Beg. of Year) $50,000 Accounts Payable (End of Year) $100,000 […]
Date: September 19th, 2020
Ultimate ________ of a firm depends on who owns the major portion of the common shares and thus controls the direction of the firm through voting power. A) managerial control B) creditor control C) shareholder control D) government control ANSWER C Explanation: A)
Date: September 19th, 2020
