Annuities offered by life insurance companies are a financial contract that
A. is used to build up a fund.
B. pays only fixed returns to groups of employees.
C. is used to liquidate a fund.
D. pays only variable returns to individuals.
E. None of the above are correct.
Ans: C. is used to liquidate a fund.
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The applicant works 2 different jobs. The underwriter will rate him according to which job?
A. The job with the most hours worked each week on average. B. The job with the highest income. C. The job the insured is most closely trained for professionally. D. The job that is most hazardous.
On January 1, 2015, Hernandez Corporation issued $2,000,000, 8%, 10-year bonds at 98. The journal entry to record the issuance will show a
A. debit to Cash of $2,000,000 B. credit to Bonds Payable for $2,040,000 C. credit to Discount on Bonds Payable for $40,000 D. debit to Cash for $1,960,000