All of the following statements about the independent agency system are true EXCEPT
A) Agents are often authorized to adjust small claims.
B) Agents are compensated on the basis of commissions.
C) The insurer rather than the agent owns the renewal rights to the business.
D) The agent is an independent business person who represents several insurers.
Answer: C
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Rafael and Rachel met in grad school. Their relationship started getting more serious, and Rachel decided to bring Rafael to her family gathering for Passover. Rafael was not raised Jewish, and Rachel was concerned her family would not approve of their relationship. To her surprise, Rachel’s family embraced Rafael with open-mindedness. This is an example of a(n) ______ turning point.
a. interpersonal/normative b. dyadic c. social network d. circumstantial
Which of the following is a TRUE statement regarding the effect of a stock split and stock dividend on total assets or liabilities?
A) Both a stock split and a stock dividend will decrease total assets. B) Both a stock split and a stock dividend will increase total liabilities. C) A stock split will increase total assets, but a stock dividend will not. D) Neither a stock split nor a stock dividend will affect total assets or total liabilities.
Gull Corp is considering selling its old popcorn machine and replacing it with a newer one. The old machine originally cost $5,000 and has been fully depreciated. Annual costs are $4,000. A high school is willing to buy it for $2,000. New equipment would cost $18,000 and annual operating costs would be $1,500. Both machines have an estimated useful life of 5 years
A) Stay with the old equipment $3,500 less in net costs B) Purchase the new equipment $3,500 cost savings C) Purchase the new equipment - deduction in costs $14,500 D) Stay with the old equipment - cost savings of $2,000
The adjusting entry for overallocated or underallocated manufacturing overhead is usually prepared at the beginning of the accounting period
Indicate whether the statement is true or false