Finance

John has to pay $1,000 per month for his mortgage for another 5 years,

John has to pay $1,000 per month for his mortgage for another 5 years, but he is considering paying the mortgage off in one lump sum. John cannot calculate the present value of the payments using the annuity formulas because his payments are monthly and not once per year. Indicate whether the statement is true […]

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Date: September 19th, 2020

All of the following statements about balance sheets are true EXCEPT

All of the following statements about balance sheets are true EXCEPT A) Assets – Liabilities = Shareholders’ Equity. B) balance sheets show average asset balances over a one-year period. C) a balance sheet reports a company’s financial position at a specific point in time. D) assets are reported at historical cost.     ANSWER B

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Date: September 19th, 2020

What information does a firm’s balance sheet provide to the viewing pu

What information does a firm’s balance sheet provide to the viewing public? A) a complete listing of all of a firm’s cash receipts and cash expenditures for a defined period of time B) an itemization of all of a firm’s assets, liabilities, and equity as of the balance sheet date C) a report of investments […]

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Date: September 19th, 2020

Which of the following statements about the insurer’s obligation to pr

Which of the following statements about the insurer’s obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true? I. The insurer agrees to defend the insured only if the suit is not groundless, false, or fraudulent. II. The insurer’s obligation to defend the insured ceases […]

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Date: September 19th, 2020

When comparing inventory turnover ratios, other things being equal, A

When comparing inventory turnover ratios, other things being equal, A) higher inventory turnover results from old or obsolete inventory increasing the inventory balance on the balance sheet. B) a higher inventory turnover is preferred to improve liquidity. C) higher inventory turnover results from an increase in the selling price of the product. D) a lower […]

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Date: September 19th, 2020

Following catastrophic hurricane losses, South Coast Insurance Company

Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision. Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n) A) calendar-year deductible. B) aggregate deductible. C) straight […]

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Date: September 19th, 2020