To level a net single premium (NSP), the NSP is divided by
A) the maximum number of years the premium could be paid.
B) the ordinary life annuity factor for the premium payment period.
C) the present value of a life annuity due of $1 for the premium payment period.
D) the deferred life annuity factor for the premium payment period.
Answer: C
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In the payroll subsystem, which function should distribute paychecks?
a. personnel b. timekeeping c. paymaster d. payroll
Extraordinary gains and losses arise from events that have all the following characteristics except:
a. They are unusual given the nature of the firm's activity. b. They are nonrecurring. c. They are material in amount. d. They result from terminated involvement in a line of business.
Answer the following statement(s) true (T) or false (F)
1. Dividends are required by law to all shareholders. 2. Working capital is the amount of capital available for the day-to-day running of the firm. 3. If you have a checking account and have written checks for $1000 but only $100 of checks have cleared, the $100 of checks that have cleared are referred to as float. 4. Trade credit and factoring are good sources of capital investments. 5. Capital budgeting involves comparing and evaluating the revenues and expenses for one year and determining what portion must be invested in order to ensure an adequate rate of return for the firm.
Jack is a guest at Harry's home. While there, he goes into the library and picks up a music box that is part of Harry's collection. Jack overwinds the stem and it breaks. Hoping Harry won't notice, Jack takes the music box for repair to a jeweler who sells similar ones. The jeweler fixes it, but forgets to tag it and an unsuspecting clerk sells it to Robert. Jack is frantic. Can Harry get the
music box from Robert? a. No, the jeweler gives good title to a bona fide purchaser for value. b. No, the jeweler was not a merchant with regard to music boxes. c. Yes, Robert was not a buyer in the ordinary course of business. d. Yes, Robert has assumed only Jack's title, which is no title at all.