If the interest rate is positive, then the present value of an annuity due will be less than the present value of an ordinary annuity. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A fire destroyed the home next door to Brad’s home. The fire department chief was concerned that the damaged home would collapse on to Brad’s home, so he ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad’s hotel room while he is complying with the fire […]
Date: September 19th, 2020
If there is a conflict between state law and a provision in a homeowners policy, A) the policy wording takes precedence. B) the state law takes precedence. C) the policyholder is entitled to whichever provides broader coverage. D) the policy is null and void. ANSWER Answer: B
Date: September 19th, 2020
One additional coverage under the homeowners policy makes available up to 10 percent of the Coverage A limit to cover increased repair costs after a loss in order to comply with a stricter building code. This additional coverage is called A) ordinance or law. B) reasonable repairs. C) concurrent causation. D) debris removal. […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
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 […]
Date: September 19th, 2020
Cash and credit management are typically the responsibility of the A) treasurer. B) vice president of production and operations. C) controller. D) chief executive officer, or CEO. ANSWER A
Date: September 19th, 2020
Cantanna Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that fixed assets are $70,000,000 and that sales will be $300,000,000. If depreciation is historically 20% of fixed assets, what is the expected amount of depreciation for the upcoming year (in dollars)? A) $14,000,000 B) $20,000,000 C) […]
Date: September 19th, 2020
Jose and Maria would like “open-perils” coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage? A) Homeowners 2 B) Homeowners 3 C) Homeowners 4 D) Homeowners 5 ANSWER Answer: D
Date: September 19th, 2020
Financing activities are concerned with: A) determining whether a company’s assets should be financed with debt or equity. B) managing a firm’s cash management procedures. C) managing a firm’s working capital. D) planning sales of a corporation’s equity capital. ANSWER A
Date: September 19th, 2020
