What is the purpose of or the reason for purchasing insurance?
What will be an ideal response?
The purpose of insurance is to protect against financial catastrophe. The goal is to guard you and those you care about from financial hardship. You want to be able to replace your car or home should it be destroyed. You want to replace your income should you become disabled. You want to be able to pay large medical bills should you become ill. You want to protect your most valuable assets from loss. You buy insurance to protect against financial catastrophe, not to smooth our the every day bumps in life.
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For some products, affective ads are an effective approach because there are no real tangible differences among the brands
Indicate whether the statement is true or false
The comment that "items that are not material may be recorded in the financial statements in the most economical and expedient manner possible" is representative of:
a. matching. b. conservatism. c. realization. d. materiality. e. None of the answers are correct.
Honig Corporation had the following shares of stock outstanding on December 31, 2010: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding Dividends were in arrears for 2008 and 2009 . On December 31, 2010, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and
common stockholders, respectively, are a. $200,000 and $200,000. b. $160,000 and $240,000. c. $240,000 and $160,000. d. $80,000 and $320,000.
When equal work does not produce equal outcomes, or when one employee is paid disproportionately to another for doing the same job, then there is a lack of
a. Operational justice b. Distributive justice c. Procedural justice d. Mechanical justice