Payments from an annuity purchased from an insurance company are not taxable until the taxpayer has recovered the purchase price of the annuity.
Answer the following statement true (T) or false (F)
False
The recovery of the purchase price is spread over the payment period of the annuity.
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________ releases a partner from liability for having exceeded his or her authority and binds the partnership to the contract as if it had been authorized all along.
A. Rescission B. Emancipation C. Ratification D. Devolution
QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Alternative A Alternative BProjected revenue$62,500 $75,000 Unit-level costs 12,500 18,000 Batch-level costs 6,250 12,000 Product-level costs 7,500 8,500 Facility-level costs 5,000 6,250 What is the differential revenue for this decision?
A. $75,000 B. $62,500 C. $12,500 D. $25,000
All of the following are heuristics that would bias the evaluation of the financial statements except
a. The halo effect b. Selective perception c. Plausible deniability d. Escalation of commitment
A company sells a software package to a purchaser. The package contains a licence agreement, which the purchaser does not see until she has paid for and received the package
The agreement, however, states that the purchaser may return the package if she does not accept the terms of the licence. If the purchaser keeps the software, is she bound by the terms of the licence agreement? A) No. The seller has not given any consideration for the buyer's promise to be bound by the agreement. B) Yes. Although there has been no consideration, the provision allowing return of the goods creates an exception recognized by the law to the requirement for consideration. C) No. The seller cannot unilaterally impose terms on the purchaser. The seller did not agree to the licence agreement when she purchased the package. D) The answer depends on the adequacy of the consideration which a court would find was given. E) The answer depends on whether the case is characterized as governed by the skrink-wrap rule or the click-wrap rule.