Which of the following is not a currently allowed practice related to pensions?
a. The use of cash balance plans
b. Redistributing benefits away from older employees and shifting them to younger employees
c. The raiding of overfunded pension plans by acquiring corporations
d. Discretionary funding of defined benefit plans
ANSWER: D
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Which of the following statements is true about cancellation of an insurance policy?
A. Insurance contracts contain a reinstatement clause that allows an insured to reinstate a cancelled policy. B. Insurers that cancel a contract need not return the unearned portion of any premiums paid by the insured. C. Insureds who terminate a contract are entitled to a return of the premium on a short-rate basis. D. Insurers can cancel insurance contracts by surrendering the policy to the insured.
The more loyal a firm's profitable customers, the lower its customer equity
Indicate whether the statement is true or false
Joan Miller is the President of an advertising agency. One of the adjustments a staff accountant made at the end of July was $360 for unpaid wages of the secretary. Joan Miller might ask, "Why go to the trouble of making this adjustment? Why worry about
it? Doesn't everything come out in the end, when the secretary is paid in August? Because wages expense in total is the same for the two months, isn't the net income in total unchanged?" Give three reasons why adjusting entries can help Joan Miller assess the performance of the business. (Net income was $1,600.)
Which of the following is the appropriate general journal entry to record the declaration of a cash dividends?
A) Retained EarningsCash B) Dividends PayableCash C) Additional Paid-in CapitalDividends Payable D) Retained EarningsDividends Payable