Explain how an annuity 10 years certain would work
What will be an ideal response?
An annuity 10 years certain would pay rent to the annuitant or a beneficiary for at least 10 years. If the annuitant outlives the 10-year period, the annuity will continue to pay until the annuitant dies.
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If the replacement cost of a unit of inventory has declined below original cost, but the replacement cost exceeds net realizable value, the amount to be used for purposes of inventory valuation is
a. net realizable value. b. original cost. c. market value. d. net realizable value less a normal profit margin.
Which is an example of a Cost incurred in an exchange?
a. loss of self-respect (from the perspective of the "client" of a nonprofit) b. the values received (from the perspective of the "client" of a nonprofit) c. acquiring a new idea (from the perspective of the "client" of a nonprofit) d. the nonprofit acquiring a new volunteer (from the nonprofit's perspective) e. quitting smoking – from the point of view of smoking cessation program
Which of the following statements is false?
A) IRS publications provide helpful advice on filing the federal personal income tax return. B) The statute of limitations gives the IRS three years from the time the return is filed to impose additional tax liabilities. C) Most tax service companies can provide the expert advice that high-income individuals with complex tax situations need. D) Many financial planners do not specialize in tax advice. However, they may refer you other professionals who do.
The accounting firm of Gray & Co did accounting work for both Regional Bank and Carter Electronics. Without Carter's knowledge or approval, Gray & Co discussed Carter's financial problems with Regional Bank. In this situation, Gray & Co
a. breached a legal obligation to keep all client information confidential. b. breached a moral, but not a legal, obligation of confidentiality. c. did not breach any obligations to its clients. d. acted properly because it was protecting its client, Regional Bank, from possibly making an unwise loan to Carter Electronics.