All of the following are reasons for a primary insurer to use reinsurance EXCEPT
A) to increase the unearned premium reserve.
B) to increase underwriting capacity.
C) to protect against catastrophic losses.
D) to stabilize profits.
Answer: A
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From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1 of the current year, Victoria Garza, the sole stockholder, began Garza Décor with an initial investment of $50,000 cash. On November 30, her records showed the following (alphabetically arranged) items and amounts.Accounts payable…………….$12,000Notes payable………………4,250Accounts receivable………. 19,000Office furnishings………..$40,000Cash………………………21,200Rent expense……………9,600Dividends………………. 6,000Salaries expense……….4,200Fees earned……………….34,000Telephone expense…….250
What will be an ideal response?
A company had beginning inventory of 10 units at a cost of $20 each on March 1. On March 2, it purchased 10 units at $22 each. On March 6 it purchased 6 units at $25 each. On March 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?
A. $450 B. $520 C. $490 D. $570 E. $470
Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the state. Which of the following best describes this contract clause?
A) Void as an illegal primary restraint B) Valid as a reasonable restraint on trade C) An unenforceable restraint of trade contrary to public policy D) Binding as fair protection
When following smart buying to purchase a home you should
A) create a budget and determine what PITI you can afford. B) check out your FICO score and get a copy of your credit report. C) look at your overall financial plan to determine how big a loan you should take on. D) determine how much of a down payment you can afford. E) all of the above.