Rigoberto's family would need $30,500 for annual living expenses if he should pass away. His wife earns $13,300 per year and the family has additional yearly income of $6,200 from investments. If the prevailing interest rate is 8.6%, how much life insurance is needed to cover the family's income shortfall? (Round to nearest $1,000)
$128,000
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Which of the following statements concerning internally developed goodwill is true?
A) It is a separately identifiable asset. B) It is capitalized at its cost. C) The costs associated with its development are expensed as incurred. D) Measuring its value is relatively easy and faithfully represented.
Quotas are a quantitative barrier that sets
A. limits, established by the importer. B. precise quantities of imports or exports, based on price. C. expectations on domestic and foreign sales. D. goals, established by the exporter.
Which of the following is not true regarding the accounting for defined contribution plans?
a. When pension assets equal pension liabilities and the expected rate of return on pension investments equals the discount rate used to compute the projected benefit obligation, the amounts offset each other. b. When the interest cost exceeds the expected return on pension investments, either employer contributions or future earnings on pension plan investments must make up the difference. c. Computing pension expense (or credit) using the expected return (not the actual return) rests on the view that pension plans should take a long-term perspective and generate earnings from investments based on a long-term expected rate of return. d. Annual deviations from the long-term expected rate of return should flow through to net income as they occur. e. Recognizing service cost as an increase in the pension expense parallels inclusion of wage and salary costs as an expense.
Generic products are popular in the U.S. and other developed nations, but not in less-developed nations.
Answer the following statement true (T) or false (F)