In order to be conservative, accrual accounting requires that expenses be recorded when incurred, but revenues are recorded only after the cash has been received. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
All of the following are characteristics of inland marine floater policies EXCEPT A) Coverage can be specifically tailored to the specific type of personal property insured. B) Coverage applies only when the property is at a specified location, such as the insured’s home. C) The amount of insurance can be selected by the purchaser. D) […]
Date: September 19th, 2020
Based on the information in Table 4-1, assuming that no preferred dividends were paid, the return on common equity is A) 55.15%. B) 17.56%. C) 38.83%. D) 44.86%. ANSWER A
Date: September 19th, 2020
Under the ISO program, a mobile home can be insured by A) adding the appropriate endorsement to the ISO personal auto insurance policy. B) using an ISO floater policy. C) adding the appropriate endorsement to an ISO Homeowner 2 or Homeowners 3 form. D) using an ISO inland marine form. ANSWER Answer: C
Date: September 19th, 2020
Based on the information in Table 4-1, the times interest earned ratio is A) 12.33 times. B) 23.75 times. C) 32.33 times. D) 19.00 times. ANSWER B
Date: September 19th, 2020
Day-to-day cash management is one of the fundamental concepts that a nonfinancial manager should understand in order to: A) better assess the e current environment in which the firm operates. B) better assess future financing requirements. C) better understand the role of capital markets in raising long-term funds. D) better measure and create value for […]
Date: September 19th, 2020
Which of the following is the primary source of cash inflows in a pro forma cash budget? A) anticipated dividends B) anticipated sales C) anticipated equity D) anticipated net earnings ANSWER B
Date: September 19th, 2020
Congressional action in 2012 extended the National Flood Insurance Program (NFIP) until 2017. Which of the following is a key provision of the Biggert-Waters Flood Insurance Reform and Modernization Act of 2012? A) elimination of the waiting period for coverage to start B) elimination and phase-outs of several rate subsidies C) write-off of the multi-billion […]
Date: September 19th, 2020
Which statement is true about medical expense coverage under the boatowners package policy? A) It pays the medical expenses of a covered person who is injured while in the boat. B) It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured. […]
Date: September 19th, 2020
Which of the following statements is MOST correct concerning flotation costs? A) Flotation costs are the same for common stock, preferred stock and bonds because they reflect mainly printing costs and legal fees. B) Flotation costs are higher for common stocks than for preferred stocks and bonds due to the higher level of risk associated […]
Date: September 19th, 2020
