Which of the following dividend options produces a result similar to taking dividends in cash and depositing them in a bank savings account?
A) Applying dividends against premium payments
B) Using dividends to buy 1-year term insurance
C) Taking dividends in cash
D) Leaving dividends to accumulate at interest"
Ans: D) Leaving dividends to accumulate at interest"
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The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of
a. Transactions b. Authorizations c. Costs d. Cutoffs
Firms with high power distance are most likely to be characterized by ________
A) concentrated power among executives and little autonomy for subordinates B) an equal distribution of power among executives, managers, and lower-level employees C) a minimal gap between the powerful and the weak D) a highly flexible work environment