Which of the following statements about term life insurance is correct??
A. It is administered primarily by the trust departments of commercial banks.?
B. ?The premiums associated with a term insurance policy are fixed payments computed as an average of the premiums required over the expected life of the insured person.
C. ?It offers both insurance coverage and a savings feature.
D. ?It is a relatively short-term contract that provides financial protection for a temporary period.
E. ?Investors who prefer to receive current income can invest in income policies, and investors who are willing to accept higher risks in hopes of obtaining higher returns can invest in growth funds.
Answer: D
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Which one of the following statements is false regarding the gross profit ratio?
a. The gross profit ratio is a measure of profitability. b. The gross profit ratio is calculated by dividing net sales by gross profit. c. The gross profit ratio can help investors decide whether or not to buy a company's stock. d. The gross profit ratio should be compared with both a company's prior years' ratios and also competitor ratios.
Exhibit 14-16 Harry's Inc issued a four-year, $75,000, non-interest-bearing note to a customer on January 1, 2016. Harry also agrees to sell inventory to the customer at reduced rates over a five-year period. Sales are to be evenly spread over the five-year period. Harry's incremental interest rate is 8%, and the present value of the note is $55,125. ? Refer to Exhibit 14-16.What is Harry's
sales revenue connected with the note in 2018 ? A) $4,974 B) $15,000 C) there is no sales revenue on a note payable D) $3,975
If a report is urgently needed, some accuracy may have to be sacrificed in the interest of timeliness
Indicate whether the statement is true or false
Which of the following errors will not cause the debit and credit columns of the trial balance to be unequal?
A) A debit entry was recorded in the wrong account. B) A debit was entered in an account as a credit. C) The account balance was carried to the wrong column of the trial balance. D) The balance of an account was incorrectly computed.