The earnings on an deferred annuity are
A)
subject to ordinary income taxes when earned.
B)
subject to capital gains taxes when earned.
C)
tax exempt.
D)
tax-deferred until they are distributed.
D
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A customer agrees to pay a seller over time with a promissory note. Which of the following statements related to this situation is false?
A) The transaction price is determined by adjusting the promised amount of future consideration to reflect the time value of money. B) The objective for the adjusting for time value of money is to separate the contract into a revenue element and a financing element. C) When adjusting for the time value of money, the seller should use the current prime lending rate as the discount rate. D) Sellers are not required to adjust for the time value of money if the time period between the customer's payment and the company's transfer of goods or services is less than one year.
A company's required rate of return, typically its cost of capital is called the:
A. Hurdle rate. B. Payback rate. C. Average rate of return. D. Internal rate of return. E. Maximum rate.
With regard to the social-business letter format, which of the following statements is NOT true?
A. The inside address is placed last, at the bottom left of the page. B. The salutation ends with a comma rather than a colon. C. The baronial letterhead cannot be used. D. Reference initials and copy notations are not included.
The communication process begins when the sender A) determines the appropriate communication channel
B) has an idea. C) encodes an idea into a message. D) plans for feedback.