Fixed costs divided by contribution margin per unit equals the breakeven point in unit sales

Insurance policy benefits are classified on an insurance company's balance sheet as

A. liabilities, because the insurance company may have to pay out the benefits. B. assets, because policy benefits are valuable to the company. C. liabilities, because customers may fall behind on their premium payments. D. assets, because policy benefits are fully covered by premium payments. E. liabilities, because insurance companies must maintain a capital base to cover the payments of benefits.

In large companies, the independent internal verification procedure is often assigned to

A. outside CPAs B. management C. computer operators D. internal auditors