The Sarbanes-Oxley Act of 2002, in order to protect investors, requires a higher level of accountability for which of the following groups? A) public accountants B) boards of directors C) corporate officers D) all of the above ANSWER D
Date: September 19th, 2020
A company borrows $2,000,000 and uses the money to purchase high technology machinery for its operations. These are examples of A) cash flow from financing and cash flow from operations. B) cash flow from financing and cash flow from investing. C) cash flow from investing and cash flow from operations. D) cash flow from investing […]
Date: September 19th, 2020
Which of the following statements about ocean marine insurance coverages is (are) true? I. Hull insurance limits coverage to the breakdown of a ship’s machinery and equipment. II. Protection and indemnity insurance provides liability insurance to the ship owner for bodily injury and property damage to third parties. A) I only B) II only C) […]
Date: September 19th, 2020
The generation of cash budgets and and pro forma financial statements are equivalent ways of forecasting financial needs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
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. […]
Date: September 19th, 2020
You are 21 years old today. Your grandparents set up a trust fund that will pay you $25,000 per year for 20 years, starting on your 65th birthday to supplement your retirement. If the trust can earn 7.5% per year, how much will your grandparents need to put in the trust fund today (rounded to […]
Date: September 19th, 2020
Based on the information in Table 4-1, and assuming the company’s stock price is $30 per share, the P/E ratio is A) 9.85. B) 10.99. C) 3.09. D) 4.83. ANSWER B
Date: September 19th, 2020
All of the following statements about business income insurance are true EXCEPT A) Business income is defined as total sales that would have been made if the loss had not occurred. B) Payroll is considered a continuing normal operating expense. C) Business income insurance does not cover the physical damage caused by a peril which […]
Date: September 19th, 2020
Which of the following statements about the business income coverage form is true? A) Business income is defined as gross earnings before taxes. B) Payroll is excluded unless it is specifically added. C) The form covers loss of business income and extra expenses incurred during restoration. D) The form can be used by a manufacturing […]
Date: September 19th, 2020
Which of the following statements about the equipment breakdown protection coverage form is (are) true? I. The covered cause of loss is a breakdown of covered equipment, including boilers, machinery, and electrical and mechanical equipment. II. It provides coverage for the reasonable cost of expediting permanent repair or replacement of damaged property. A) I only […]
Date: September 19th, 2020
