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3 years ago

Disability income plans which require that the insurer can never change or alter premium rates are usually considered

1 answer:

8 0

<span>Disability income plans which require that the insurer can never change or alter premium rates are usually considered </span>noncancellable.
Noncancellable means an insurance policy that can not be canceled as long as the customer makes their premium payments. They can not cancel or change the service agreement for any reason if payments are made.

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Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to c

romanna [79]

Answer:

the journal entries:

to record the contract

Dr Accounts receivable 96,000

Dr Bonus receivable 2,400

Cr Service revenue 98,400

to record adjustment of bonus receivable at month 5:

Dr Service revenue 6,400

Cr Bonus receivable 6,400

to record service revenue for the fifth month:

Dr Accounts receivable 96,000

Dr Bonus receivable 800

Cr Service revenue 96,800

to record getting the bonus:

Dr Cash 32,000

Cr Bonus receivable 6,400

Cr Service revenue 25,600

Explanation:

total value of the contract:

[($96,000 x 8) + $32,000] x 0.8 = $640,000

[($96,000 x 8) - $32,000] x 0.2 = $147,200

total expected value = $787,200

expected value of the bonus = $787,200 - ($96,000 x 8) = $19,200, monthly bonus receivable $19,200 / 8 = $2,400

the adjustments required during the fifth month:

[($96,000 x 8) + $32,000] x 0.6 = $480,000

[($96,000 x 8) - $32,000] x 0.4 = $294,400

total expected value = $774,400

expected value of the bonus = $774,400 - ($96,000 x 8) = $6,400, monthly bonus receivable $6,400 / 8 = $800

5 0

3 years ago

Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog’s ancestry, but Alyssa

lisabon 2012 [21]

Answer:

Probably not, because Alyssa made a mistake about the dog's value, not a mistake about material fact.

Explanation:

When Sierra offered to sell the dog to Allysa, Allysa failed to discuss the ancestry of the puppy. She wrongly believed the dog came from a line of champions.

On finding out the dog is only worth $200, she will not be able to rescind the contract because the onus to ask all relevant questions about the purchase before accepting is on her.

She made the mistake of assuming the dog was worth $800. She made a mistake about the dog's value and not the material fact.

7 0

3 years ago

Read 2 more answers

Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenu

Volgvan

Answer:

A's segment profit margin is: $151,000

Explanation:

<u>Calculation of A's segment profit margin</u>

Sales revenue $ 810,000

Less Variable operating expenses ($319,000)

Controllable Contribution $491,000

Less Fixed expenses:

Traceable to A and controllable by A ($230,000)

Traceable to A and controllable by others ($111,000)

Profit Margin $151,000

8 0

3 years ago

Nico wants to buy a new digital camera for his semester studying abroad but he knows very little about cameras, having never own

Darina [25.2K]

Answer: External research

Explanation:

External research is referred to as or known as a research conducted when an individual does not have any prior knowledge or information about a commodity or product, which further leads the individual to seek data and information from the personal sources such as friends or family and also the public sources i.e. online forums or in other cases the marketer dominated source i.e. sales persons especially at times when an individual’s previous experience is known to be limited.

3 0

3 years ago

Which of the following is a correct description of the crowding-out effect of deficit spending?

borishaifa [10]

Answer:

the options are missing, so I looked for them:

a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.

d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.

the answer is:

b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.

Explanation:

The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.

5 0

3 years ago