Which of the following accounts does NOT belong in the liability section of a balance sheet? A) short-term debt B) additional paid-in capital C) long-term debt D) accruals ANSWER B
Date: September 19th, 2020
Bill saves $3,000 per year in his IRA starting at age 25 and continuing to age 65, when he retires. The amount Bill has in his IRA at age 65 can be characterized as the future value of an annuity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following losses would be covered under the personal liability coverage (Coverage E) of an unendorsed Homeowners 3 policy? A) liability arising out of the manufacture and sale of illegal narcotics B) liability arising out of damage to a neighbor’s property that occurred over time C) liability arising out of a business operated […]
Date: September 19th, 2020
Of the following different types of securities, which is typically considered most risky? A) common stocks of small companies B) long-term government bonds C) common stocks of large companies D) long-term corporate bonds ANSWER A
Date: September 19th, 2020
Cash flows and profits are synonymous, in other words, higher cash flows equal higher profits Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Activities of the investment banker include A) assuming the risk of selling a security issue. B) providing advice to firms issuing securities. C) selling new securities to the ultimate investors. D) all of the above ANSWER D
Date: September 19th, 2020
A general partnership, unlike a limited partnership, is an entity that legally functions separate and apart from its owners. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Investment A has an expected return of 15% per year, while Investment B has an expected return of 12% per year. A rational investor will choose A) Investment A if A and B are of equal risk. B) Investment A because of the higher expected return. C) Investment B because a lower return means lower […]
Date: September 19th, 2020
Which of the following losses would be covered under the medical payments coverage of the Homeowners 3 policy? A) injuries to another person arising out of the insured’s negligent operation of an automobile B) medical payments resulting from the transmission of a communicable disease C) injury to a resident employee at the insured’s home D) […]
Date: September 19th, 2020
Which of the following statements about the scheduled personal property endorsement to the homeowners policy is (are) true? I. It provides named-perils coverage on scheduled items. II. It can be used to insure valuable items such as jewelry, silverware, and coin collections. A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
