Based on the information in Table 4-1, the debt ratio is A) 32.6%. B) 24.1%. C) 55.2%. D) 45.0%. ANSWER D
Date: September 19th, 2020
Generally accepted accounting principles (GAAP) require finance statements prepared on a cash basis because these statements are most useful for investors and managers. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Frank purchased a building in a run-down area of a city. When Frank was unable to obtain property insurance in the voluntary insurance market, an agent suggested that he contact a state pool created in the 1960s that makes property insurance available in riot-prone areas. The state pool the agent referred to is called a(n) […]
Date: September 19th, 2020
Which of the following are fundamental concepts that nonfinancial managers need to understand? A) How current business conditions can affect the firm’s performance. B) How to project financial statements and future investment needs. C) How capital markets work to raise long-term capital. D) All of the above. ANSWER D
Date: September 19th, 2020
Which of the following is an advantage of using private placements for debt? A) fewer and less burdensome restrictive covenants B) reduced costs from the elimination of the registration statement for the SEC, investment-banking underwriting fees and distribution costs C) lower interest costs D) the possibility of future SEC registration ANSWER B
Date: September 19th, 2020
Tina purchased a personal umbrella policy with a $1 million limit. Her insurer required her to carry liability limits of 250/500/50 under her auto insurance policy. The personal umbrella policy was written with a $1,000 self-insured retention. Tina was responsible for an auto accident in which the other driver was severely injured. The other driver’s […]
Date: September 19th, 2020
Len is considering the purchase of a home. As a home is a large investment, Len wants to make sure that there are no liens, easements, or other encumbrances preventing him from an unchallenged right to possess and enjoy his property. Len can protect this right through the purchase of A) extended coverage insurance. B) […]
Date: September 19th, 2020
Based on the information in Table 4-1, the accounts receivable turnover is A) 10.00. B) 9.50. C) 8.11. D) 11.11. ANSWER D
Date: September 19th, 2020
The procedure by which significant changes may be made to a partnership, such as admission of a new partner or termination of the partnership, are governed by each state so no partnership agreement is needed. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Martin would like to insure valuable personal property limited in coverage by his homeowners policy. Martin has two options. He can purchase the coverage through a separate personal articles floater policy or he can add an endorsement to his homeowners policy. The endorsement is called the A) extended coverage endorsement. B) scheduled personal property endorsement. […]
Date: September 19th, 2020
