Which of the following statements describes a Difference in Conditions (DIC) Policy? A) It is a type of commercial umbrella liability policy. B) It is an open perils policy that covers perils not insured by basic property insurance contracts. C) It is designed to cover indirect losses for which the insured has direct damage coverage. […]
Portfolio performance is determined mainly by stock selection and market timing, with less emphasis on asset allocation. Indicate whether the statement is true or false ANSWER FALSE
Which of the following is an advantage of the sole proprietorship? A) limited liability for its owners B) no significant legal requirements for starting the business C) double taxation for its owners D) easily transferred ownership ANSWER B
The Sarbanes-Oxley Act of 2002 holds all of the following groups strictly accountable in a legal sense for any instances of misconduct EXCEPT A) investors. B) outside members of the board of directors. C) company officers. D) lawyers. ANSWER A
Accounting supports financial managers by providing all of the following EXCEPT: A) identifying relevant data related to the activities of the firm. B) presenting data in an agreed-upon and standardized form known as generally accepted accounting practices. C) summarizing the firm’s economic activity in the form of financial statements. D) generating revenue for the firm. […]
Based on the information in Table 3-1, calculate the after-tax cash flow from operations for 2008 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable). A) $1,450 B) $5,500 C) $4,300 D) $6,250 ANSWER C
Based on the information in Table 4-1, the inventory turnover ratio is A) 1.3 times. B) 2.5 times. C) 2.0 times. D) 2.9 times. ANSWER C
Which of the following would NOT normally be considered a “flotation cost”? A) printing and engraving expenses B) dividends C) legal fees D) underwriter’s spread ANSWER B
A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year […]
XYZ, Inc. would suffer serious financial consequences if either of its two major customers were shut down and could not purchase XYZ products. Which of the following types of consequential loss protection would provide protection against this exposure? A) leasehold interest B) extra expense C) marine insurance D) business income from dependent properties […]
