Of the following dividend options, which of these is taxable?
A) Reduction of premium
B) One year term
C) Paid-up additions
D) Accumulation at interest
Ans: D) Accumulation at interest
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Marla Company borrowed $100,000 on a 10-year, 7% installment note payable on January 1, 2005. The terms of the note require Marla to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the first payment on the note on December 31, 2005 will involve:
A) a debit to Notes Payable of $10,000 B) a debit to Cash of $14,238 C) a debit to Interest Expense of $14,238 D) a debit to Notes payable of $14,238 E) a debit to Notes Payable of $7,238
In All Men Are Brothers, Mahandas Gandhi wrote, "I must confess that I do not draw a sharp line or any distinction between economics and ethics." This means that:
a. Economic activity is devoid of ethics. b. The study of economics cannot include the study of ethics. c. Human values and commercial activity cannot be separated. d. Gandhi could not draw a straight line.