Which of the following is a true statement about the first payment received from a purchased annuity?
A. The payment can only be taxed in the year after the annuity was purchased.
B. The payment is included in gross income.
C. The payment is not taxed until the annuity payments cease altogether.
D. A portion of the payment is a return of capital.
E. None of these are true statements.
Answer: D
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Which of the following is an example of postpurchase communication?
a. An airline hires an actor to film a series of commercials touting the airline's service. b. An insurance company designs a new "umbrella" logo to indicate that its customers are well protected. c. A tax return preparer offers a 20% discount for any customers who use the service in January. d. A hotel sends an email survey to its guests a week after their stay, asking them to comment on the quality of the service they received.
Which of the following statements is true of the writing requirement of contracts, according to the Statute of Frauds?
A) Contracts for the sale of goods for $500 need not be in writing. B) Contracts for the lease of goods with payments of $101 must be in writing. C) Finder's fee contracts need not be in writing. D) Promises made in consideration of marriage must be in writing.
Only product costs are recorded on job cost sheets.
Answer the following statement true (T) or false (F)
Which of the following most exemplifies the value-added principle?
A. A competitive management program that emphasizes quality B. Information gathering and reporting activities should be restricted to those activities that add value in excess of their cost C. Managerial accounting information is measured in economic, physical, and financial terms D. An ongoing process where continuous improvement is the goal