Which of the following is not a qualified 1035 exchange?
A. A whole life policy exchanged for a variable life policy.
B. A variable annuity exchanged for a variable universal life policy.
C. A variable annuity exchanged for a fixed annuity.
D. A universal life policy exchanged for a whole life policy.
Answer: B. A variable annuity exchanged for a variable universal life policy.
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A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 2/15, n/45. Defective inventory of $70,000 was returned 3 days later, and the accounts were appropriately adjusted
If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A) $550,000 debit to Accounts Payable and $550,000 credit to Cash B) $480,000 debit to Accounts Payable and $480,000 credit to Cash C) $550,000 debit to Accounts Payable, $540,400 credit to Cash, and $9,600 credit to Merchandise Inventory D) $540,400 debit to Accounts Payable, $9,600 credit to Merchandise Inventory, and $480,000 credit to Cash
The four basic sources of long-term funds for a firm are ________
A) current liabilities, long-term debt, common stock, and preferred stock B) current liabilities, long-term debt, common stock, and retained earnings C) long-term debt, paid-in capital in excess of par, common stock, and retained earnings D) long-term debt, common stock, preferred stock, and retained earnings