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Brut [27]
3 years ago
13

An agent is discussing an equity index annuity purchase with a client. The agent explains that there are several which she feels

are equally suitable for the client, but one of the companies is offering a trip for 2 to Las Vegas for reaching certain sales goals. She continues by stating that this sale will put her over the goal and win her the trip. If the client purchases that annuity, the agent
A) will probably be disciplined for failure to disclose the potential conflict of interest
B) should pack her bags for the trip; she earned it
C) should only sell what is suitable for the client based on all available information
D) should pack her bags and leave the firm before the compliance department learns of her actions
Business
1 answer:
Vesna [10]3 years ago
4 0

Answer:

B) should pack her bags for the trip; she earned it

Explanation:

In this scenario, it can be said that if the client purchases that annuity, the agent should pack her bags for the trip; she earned it. Since the annuity that has been recommended by the agent is offering her an incentive, and the agent fully disclosed that fact to the client, then she did her duty correctly. In the case that the client decides to purchase the annuity, they do so with full knowledge of the potential conflict of interest.

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Bob is training for a triathlon, a timed race that combines swimming, biking, and running.Consider the following sentence: Bob h
madam [21]

Answer:

B) People face trade-offs

Explanation:

A trade-off happens when you have to balance two (or three in this case) opposing situations. In economics all resources are scarce, and time is the only resource that everyone shares equally. Bob is facing opportunity costs, i.e. if he chooses to train one activity he cannot train the other.

Bob has to decide how to divide the time he can spend training. If he chooses running, he can´t swim or ride a bike. So he has to balance the time spent on each activity, probably depending on which sport he needs to train the most.

6 0
3 years ago
Prepare the journal entry to record bad debt expense assuming Novak Company estimates bad debts at (a) 4% of accounts receivable
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Additional information:

Novak Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $155,400 Allowance for Doubtful Accounts $3,890 Sales Revenue (all on credit) 800,700 Sales Returns and Allowances 50,330

Answer:

net credit sales = total sales revenue - sales returns and allowances = $800,700 - $50,330 =  $750,370

accounts receivables = $155,400

allowance for doubtful accounts = $3,890 (credit balance)

A) estimated bad debts = 4% of accounts receivables = 4% x $155,400 = $6,216

since the current balance of allowance for doubtful accounts is $3,890, then the adjusting entry should be = $6,216 - $3,890 = $2,326:

Dr Bad debt expense 2,326

    Cr Allowance for doubtful accounts 2,326

B)  estimated bad debts = 4% of accounts receivables = 4% x $155,400 = $6,216

since the current debit balance of allowance for doubtful accounts is $1,470, then the adjusting entry should be = $6,216 + $1,470 = $7,686:

Dr Bad debt expense 7,686

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8 0
3 years ago
Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income​ statement: Ke
prohojiy [21]

Answer:

<em>Cash flow from operating activities:</em>  35,400‬

Explanation:

Net Income                 48,900

<u>non-monetary terms</u>

gain on sale of plant assets (5,300)

depreciation expense          14,000

changes in working capital:

current assest increase:     (21,000)

current liabilities decrease   (1,200)

<em>Cash flow from operating activities:</em>  35,400‬

Increase of current assets mean cash was used to acquired.

Decrease in current liabiltiies represnt cash erogation to settle them.

4 0
3 years ago
Of the following occupations, which is predicted to have the greatest job growth?
d1i1m1o1n [39]
Hello
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have a nice day
8 0
3 years ago
Read 2 more answers
The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than t
zmey [24]

Answer:

The discount rate that makes the net present value equal to zero.

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

It is the discount rate that makes the net present value equal to zero.

I hope my answer helps you

8 0
3 years ago
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