What effect does "recognizing revenue at the end of the accounting period for rent previously received in advance" have on the accounting equation for an insurance company?
a. Stockholders' equity increases and liabilities increase.
b. Assets increase and stockholders' equity increases.
c. Assets decrease and liabilities decrease.
d. Liabilities decrease and stockholders' equity increases.
d
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________ companies get a tax advantage; most new insurance companies organize as ________ companies
A) Mutual insurance; mutual insurance B) Mutual insurance; stock C) Stock; stock D) Stock; mutual insurance
Identifying and developing options requires strong conceptual skills by managers
Indicate whether the statement is true or false.
Which of the following is true about an integrity-based culture?
a. It reinforces a particular set of rules. b. It reinforces a particular set of values. c. It empowers legal bodies to monitor compliance. d. It emphasizes rules as the primary responsibility of ethics.
Paid-in capital in excess of par represents the amount of proceeds ________
A) in deficit of the par value from the original sale of common stock
B) in excess of the par value from the original sale of common stock
C) in excess of the par value from the current value of common stock
D) in excess of the par value from the intrinsic value of common stock