The December 31, 2009 balance sheet shows net fixed assets of $150,000 and the December 31, 2010 balance sheet shows net fixed assets of $250,000. Depreciation expense for 2009 is $25,000 and depreciation expense for 2010 is $35,000. Based on this information, the cost of fixed assets purchased during 2010 is A) $100,000. B) $160,000. […]
All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT A) theft of firearms. B) destruction by fire of property used for business purposes. C) storm damage to a boat at a marina. D) furniture destroyed by a fire. ANSWER Answer: D
You just invested $50,000 into an account that earns 7 percent compounded annually. At the end of each year you can withdraw $4,971. How many years can you continue to make the withdrawals? What will be an ideal response? ANSWER 18 years
You are considering investing in a project with the following possible outcomes: States Probability of Occurrence Investment Returns State 1: Economic boom 18% 20% State 2: Economic growth 42% 16% State 3: Economic decline 30% 3% State 4: Depression 10% -25% Calculate the expected rate of return and standard deviation of returns for this investment, […]
Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true? A) The coverage applies to a detached garage or tool shed on the residence premises. B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling […]
A corporate treasurer is typically responsible for cash management, credit management, and raising capital. Indicate whether the statement is true or false ANSWER TRUE
Assume that an investment is forecasted to produce the following returns: a 20% probability of a 12% return; a 50% probability of a 16% return; and a 30% probability of a 19% return. What is the standard deviation of return for this investment? A) 5.89% B) 16.1% C) 15.7% D) 2.43% ANSWER D
The three basic types of cash-related activities that every business faces are: A) investing, working capital management, and financing. B) financing, operations, and investing. C) working capital management, financing, and budgeting. D) capital budgeting, investing, and cash management. ANSWER B
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
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 […]
