The retained earnings balance on IBM’s balance sheet at the end of 2010 is equal to IBM’s 2010 net income minus dividends paid in 2010. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
If the value of a vehicle is increased after repairs, such as repainting an entire auto when only one fender or door is damaged, the insurer will not pay for the increase in value. Another name for the increase in value is A) diminution. B) betterment. C) appraisal. D) subrogation. ANSWER Answer: B
Date: September 19th, 2020
The insurance company’s options for settling a collision loss to a covered auto under the PAP include which of the following? I. Pay the loss in money. II. Repair or replace the damaged auto. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
Date: September 19th, 2020
In addition to providing coverage in the United States, its territories and possessions, and Puerto Rico, where else does the PAP provide coverage? A) in Mexico B) in Canada C) in both Mexico and Canada D) anywhere in the world ANSWER Answer: B
Date: September 19th, 2020
All of the following losses are excluded under Part D (coverage for damage to your auto) of an unendorsed PAP EXCEPT A) vandals damaged a portable cell phone kept in the car. B) theft of a compact disc player which was permanently installed in the auto. C) damage caused to a car’s engine because the […]
Date: September 19th, 2020
Prices of securities that are traded on the organized exchanges are determined by A) a “bid” and “ask” negotiation process amongst brokers who hold these securities in their own account. B) the sellers of the securities. C) a continuous auction process reflecting the sentiments of buyers and sellers. D) the Securities Exchange Commission. […]
Date: September 19th, 2020
The current ratio and the acid test ratio both measure financial leverage. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Stock A has the following returns for various states of the economy: State of the Economy Probability Stock A’s Return Recession 9% -72% Below Average 16% -15% Average 51% 16% Above Average 14% 35% Boom 10% 85% Stock A’s expected return is A) 13.8%. B) 9.9%. C) 12.7%. D) 16.5%. ANSWER C
Date: September 19th, 2020
Ethical behavior A) is the fifth basic principles of finance. B) in the corporate world means not breaking any laws. C) is essential in business because unethical behavior destroys trust and business relationships. D) cannot be a concern to managers who are expected to maximize shareholder value. ANSWER C
Date: September 19th, 2020
Which of the following statements about the Miscellaneous-Type Vehicle Endorsement to the PAP is (are) true? I. It provides bodily injury liability coverage for any vehicle rented by the insured. II. It can be added to PAP to insurance motorcycles and motor scooters. A) I only B) II only C) both I and II D) […]
Date: September 19th, 2020
