Generally, the higher the small firm's average collection period ratio, the lower the chance of bad debt losses

Jade Larson Antiques owes $20,000 on a truck purchased for use in the business. Assume the company makes timely principal payments of $5,000 each year at December 31 plus interest at 8%. Which of the following is true?

A. After the first payment is made, the company owes $15,000 plus three years' interest. B. After the first payment, $15,000 would be shown as a long-term liability. C. After the first payment is made, $5,000 would be shown as the current portion due on the long-term note. D. Just before the last payment is made, $5,000 will appear as a long-term liability on the balance sheet

Janet is the beneficiary of her uncle's $200,000 life insurance policy. When her uncle died, Janet selected a settlement option that pays monthly benefits for as long as she lives

If Janet dies before receiving $200,000, payments will continue to a contingent beneficiary until a total of $200,000 has been paid. What settlement option did Janet select? A) joint-and-survivor annuity B) life income with guaranteed total amount C) life income with guaranteed period D) fixed amount option