What is an annuity contract? Who are the parties to an annuity contract?
What will be an ideal response?
An annuity contract is a series of payments made pursuant to a contract. The contract is usually between an individual and an insurance company, a financial services company, or an employer.
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Using ethnocentrism when dealing with coworkers from other cultures is most appropriate in a U.S. based environment
Indicate whether the statement is true or false.
[The following information applies to the questions displayed below.] Riley Company borrowed $36,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,700 during Year 1 and $1,400 during Year 2. Assume no other transactions.Based on this information alone, what are the amounts of total liabilities that would appear on Riley's December 31 balance sheets for Year 1 and Year 2, respectively?
A. $36,000 and $0 B. $1,890 and $630 C. $37,890 and $0 D. $37,890 and $38,520
According to signaling theory, Chapter 11 is a useful mechanism for screening inefficient firms out of debt renegotiation. Inefficient firms voluntarily choose Chapter 11 because:
a. the firm can be liquidated more quickly. b. negotiations therein generally result in some value retained by shareholders. c. creditors are protected from violations of the absolute priority rule (APR). d. management can better signal a higher firm value within Chapter 11.
For companies that have little change in the characteristics of their inventory items, the most appropriate method for computing a cost index for dollar-value LIFO is the
A. inventory pool method B. double-extension method C. weighted average method D. link-chain method