Mary is interested in comparing life insurance policies. Rather than looking at the cost per thousand, she would like to compare the rate of return earned on the savings portion of the policy. Which of the following would be of the most interest to Mary?
A) the policy's Linton Yield
B) the policy's surrender cost
C) the policy's traditional net cost
D) the policy's net payment cost
Answer: A
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Danube Corp. purchased a used machine for $17,000. The machine required installation costs of $7,000 and insurance while in transit of $600. At which of the following amounts would the be recorded?
A) $17,000 B) $24,000 C) $17,600 D) $24,600
Which of the following statements pertaining to tax-sheltered annuities (TSAs) is CORRECT?
A) TSAs are available to any worker not covered by an employer-sponsored retirement plan. B) TSAs are available to employees of certain nonprofit organizations. C) Alice, the vice president of a computer software company, can invest in a tax-sheltered annuity. D) Fred, a schoolteacher participating in a tax-deferred annuity, will receive his benefits tax-free.