Most family heads need substantial amounts of life insurance. However, with limited income, money spent on life insurance reduces the amount of discretionary income available for other high-priority needs
What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the
A) estimated cost of life insurance.
B) net cost of life insurance.
C) real (inflation-adjusted) cost of life insurance.
D) opportunity cost of buying life insurance.
Answer: D
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Answer the following statement true (T) or false (F)
If there are 20 manufacturers and 500 retailers, and 15 transactions are made per year at a cost of $200 per transaction, calculate the total number of transactions
A) 150,000 transactions per year B) 200,000 transactions per year C) 250,000 transactions per year D) 300,000 transactions per year E) 350,000 transactions per year
Nick is admitted to an existing partnership by investing cash. Nick agrees to pay a bonus for his ownership interest because of the past success of the partnership. When Nick's investment in the partnership is recorded
A) his capital account will be credited for more than the cash he invested B) his capital account will be credited for the amount of cash he invested C) a bonus will be credited for the amount of cash he invested D) a bonus will be distributed to the old partners' capital accounts.
On the income statement, Freight-In is:
a. deducted from net sales. b. added to net sales. c. deducted from net purchases. d. added to net purchases.