If the future value of annuity A is greater than the future value of annuity B, then the present value of annuity A must also be greater than the present value of annuity B. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Determining how a firm should raise money to fund its long-term investments is referred to as capital structure decisions. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
All of the following are equity accounts on a balance sheet EXCEPT A) retained earnings. B) paid-in capital. C) cash. D) common stock. ANSWER C
Date: September 19th, 2020
Baker Corp is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker’s current ratio now is 3. Baker wants to purchase additional inventory for its upcoming Christmas season, and will pay for the inventory with short-term debt. How much inventory can Baker purchase without violating its debt agreement […]
Date: September 19th, 2020
Which of the following statements about the replacement cost provision of the Homeowners 3 policy is true? A) It applies to personal property losses only. B) Except for small losses, the insured must repair or replace the damaged property in order to receive full replacement cost. C) The insured is required to carry an amount […]
Date: September 19th, 2020
Which of the following statements about covered perils under the personal property coverage (Coverage C) of the Homeowners 3 policy is true? A) Theft losses to boats and watercraft are covered only if they occur at the insured’s residence. B) Damage from an explosion is covered only if the explosion is the result of fire […]
Date: September 19th, 2020
Which of the following is NOT a potential source of outside financing for a corporation? A) new bank loans B) new long-term debt C) sale of new equity D) additions to retained earnings ANSWER D
Date: September 19th, 2020
All of the following would result in an increase in stockholders equity EXCEPT A) the company had positive net income greater than dividends paid. B) the company sold common stock above par value. C) the company sold common stock at par value. D) the company purchased treasury stock. ANSWER D
Date: September 19th, 2020
Which of the following property is covered under the personal property coverage (Coverage C) of the Homeowners 3 policy? A) a pet dog owned by the named insured B) a bicycle owned by a foster child living with the named insured C) a motor vehicle owned by the named insured D) a stamp collection insured […]
Date: September 19th, 2020
Which of the following statements about coverage for loss of use (Coverage D) under the Homeowners 3 policy is true? A) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss. B) The duration of payments for additional living […]
Date: September 19th, 2020
