You can buy a $50 savings bond today for $25 and redeem the bond in 10 years for its full face value of $50. You could also put your money in a money-market account that pays 7% interest per year. Which option is better, assuming they are of equal risk? A) The money-market account is […]
Date: September 19th, 2020
Unique security risk can be eliminated from an investor’s portfolio through diversification. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following types of forms is used to insure fluctuations in business personal property, such as inventory and finished goods? A) accounts receivable coverage form B) a value reporting form C) difference in conditions insurance D) business income insurance ANSWER Answer: B
Date: September 19th, 2020
A cash budget is often more valuable as a SHORT-term rather than a LONG-TERM financial forecasting vehicle. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following perils is not included in the causes-of-loss basic form of the ISO commercial package policy? A) fire B) lightning C) explosion D) flood ANSWER Answer: D
Date: September 19th, 2020
Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest compounded annually. How much will you have in the account on your 21st birthday, just after your grandparents make their deposit? A) $79,640 B) $101,802 C) $98,016 D) $86,058 ANSWER C
Date: September 19th, 2020
Which of the following statements about the building and personal property coverage form is (are) true? I. A limited amount of coverage is provided for pollutant cleanup and removal at the described premises if the release or discharge of the pollutant results from a covered cause of loss. II. Fire department service charges are specifically […]
Date: September 19th, 2020
Some fundamental concepts that nonfinancial managers need to understand include: A) the ability to assess day-to-day cash management. B) the ability to assess future financing requirements. C) the ability to understand the role of capital markets in raising long-term funds. D) All of the above. ANSWER D
Date: September 19th, 2020
On an accrual basis income statement, revenues equal cash receipts and expenses equal cash expenditures. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
All of the following are extensions of coverage under the building and personal property coverage form EXCEPT A) newly acquired or constructed property. B) valuable papers and records. C) personal property temporarily off the premises. D) currency and securities. ANSWER Answer: D
Date: September 19th, 2020
