Why is it critically important to check out the financial health of a Life Insurance Company through a ratings company like A.M. Best before you purchase the insurance?
What will be an ideal response?
Answer: When you purchase a life insurance policy, you are basically entering into a partnership with the Insurance Company that may last for 40+ years or more. You want to make certain that this company or partner will be there when your beneficiaries desperately need the death benefit of the policy. It is not unusual for Insurance companies to become insolvent and fail. It is not unusual for Insurance scams to happen, especially via the internet. Ratings companies evaluate the financial health of the Insurance company and their ratings are a good predictor of the ability of the Insurance company to remain solvent for many years into the future. There would be nothing worse than for your Insurance company to fail after you have paid premiums for many years and you have developed a pre-existing health condition during this time. Now you may have a hard time finding a new Insurance company or the premium may be cost prohibitive due to age and health.
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In the sentence Yesterday we had to work overtime, the word Yesterday functions as an adverb because it answers which question?
A) How? B) Where? C) Why? D) When?
All project terminations are due to failure
Indicate whether the statement is true or false
Claymore Corp. has the following information about its standards and production activity for September. The controllable variance is: Actual total factory overhead incurred$28,175 Standard factory overhead: Variable overhead$3.10 per unit producedFixed overhead ($12,000/6,000 estimated units to be produced)$2 per unitActual units produced 4,800 units
A. $2,400U. B. $3,695U. C. $1,295U. D. $1,295F. E. $2,400F.
On April 1, Griffith Publishing Company received $1,548 from Santa Fe, Inc. for 36-month subscriptions to several different magazines. The company credited Unearned Fees for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, What is the adjusting entry that should be recorded by Griffith Publishing Company on December 31 of the first year?
A) debit Unearned Fees, $1,548; credit Fees Earned, $1,548. B) debit Unearned Fees, $516; credit Fees Earned, $516. C) debit Unearned Fees, $1,161; credit Fees Earned, $1,161. D) debit Unearned Fees, $129; credit Fees Earned, $129. E) debit Unearned Fees, $387; credit Fees Earned, $387.