In constructing a pro forma balance sheet, which of the following fills the role of being the “plug” figure to balance the balance sheet? A) external financing B) the change in retained earnings C) accounts payable D) accounts receivable ANSWER A
Date: September 19th, 2020
Factors that affect the cost of homeowners insurance include which of the following? I. Construction material II. Deductible amount A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
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
Which of the following statements about the personal property replacement cost endorsement used with the homeowners policy is (are) true? I. The damaged or destroyed property must be repaired or replaced, no matter the size of the loss. II. It is designed primarily for antiques and fine art. A) I only B) II only C) […]
Date: September 19th, 2020
A firm whose debt to equity ratio ________ the industry average will ________ future financing flexibility by financing with equity at the next opportunity but doing so may sacrifice earnings per share. A) is less than; maximize B) exceeds; minimize C) exceeds, maximize D) None of the above. ANSWER C
Date: September 19th, 2020
Which of the following losses would be covered under Section II of an unendorsed Homeowners 3 policy? A) The homeowner accidentally dropped a bowling ball, injuring another bowler’s foot. B) The homeowner’s nanny was injured on her day off while hiking at a state park. C) The insured slandered a city council member at a […]
Date: September 19th, 2020
Tom is planning to build a home. He is weighing many factors, including construction materials, location, and other considerations. Which of the following statements is true with regard to homeowners insurance and Tom’s new home? A) The higher the construction costs are in the area, the lower Tom’s homeowners insurance premiums will be. B) The […]
Date: September 19th, 2020
What are the duties of a treasurer? Of a controller? What will be an ideal response? ANSWER The treasurer generally handles the firm’s financial activities, including cash and credit management, making capital expenditure decisions, raising funds, financial planning, and managing any foreign currency received by the firm. The controller is responsible for managing […]
Date: September 19th, 2020
To generate cash to invest in fixed assets, a firm can issue equity or obtain a loan from a bank. This is an example of which cash-related activity in cash flow management? A) Operating activity B) Profitability activity C) Investing activity D) Financing activity ANSWER D
Date: September 19th, 2020
To evaluate or compare investment proposals, we must adjust the value of all cash flows to a common date. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
