James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B
Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay?
A) Insurer A will pay $10,000 and Insurer B will pay $50,000.
B) Insurer A will pay $20,000 and Insurer B will pay $40,000.
C) Insurer A will pay $24,000 and Insurer B will pay $36,000.
D) Insurer A will pay $40,000 and Insurer B will pay $20,000.
Answer: C
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Dobson Company expects to begin operating on January 1. The company's master budget contained the following operating expense budget: JanuaryFebruaryMarchSalary expenses$40,000 $36,000 $36,000 Sales commissions, 5% of sales 24,000 30,000 28,000 Utilities 2,800 2,800 2,800 Depreciation on store equipment 1,800 1,800 1,800 Rent 7,200 7,200 7,200 Miscellaneous 1,800 1,800 1,800 Total operating expenses$77,600 $79,600 $77,600 Sales commissions are paid in cash in the month following the month in which the expense is recognized. All other expense items requiring cash payment are paid in the month in which they are recognized. The amount of cash to be paid for operating expenses during the month of January is:
A. $77,600. B. $51,800. C. $53,600. D. None of the choices.
ROI is a performance measure mainly connected with a company's income statement
Indicate whether the statement is true or false
On January 2, 2014, Nora Co acquired 2,000 shares of Stonewall Co common stock for $8,000 and classified these shares as available-for-sale securities. During 2014, Nora received $6,000 of cash dividends. Nora's share of Stonewall's 2014 earnings (net income) was $5,000 . The fair value of Stonewall's stock on December 31 . 2014, was $7 per share. Nora should report what amount in 2014 related to
Stonewall Co? a. Revenue of $6,000 b. Revenue of $12,000 c. A $1,000 decrease in the investment account d. A $1,000 increase in the investment account
The information in the body of a press release should be presented ________
A) with embedded HTML B) from general to specific C) without any quotations D) in all uppercase letters E) as a list of bulleted facts