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3 years ago

To be valid and enforceable, insurance contracts must meet which general legal requirements?

Business

1 answer:

liq [111]3 years ago

5 0

Answer and explanation:

There are four (4) legal requirements insurance contracts must meet to be considered valid and enforceable: the contract must have a legal purpose; both parties must have legal capacity to sign the contract; both parties must show proof that they agreed in the terms (benefits and obligations) of the contract; and, there must be a payment agreement for the services to be rendered.

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On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. Th

coldgirl [10]

Answer:

cash 16,000,000 debit

note payable 16,000,000 credit

-- to record issuance of the note--

interest expense 240,000 debit

interest payable 240,000 credit

--to record december 31th adjsuting entry--

note payable 16,000,000 debit

interest expense 1,200,000 debit

interest payable 240,000 debit

Cash 17,440,000 credit

-- to record honor of the note --

Explanation:

Timeline

<--//---------------//-------------------------//-->

Issuance adjusting entry maturity

Issuance: the note enter the accounting at his face value along with the cash received.

adjusting entry at year-end

the company recognize the accued interest expense for 2 complete months (Nov 1st to Dec 31th)

16,000,000 x .12 x 2/12 = 240,000

at maturity Quantum Technology pays the principal and interest:

16,000,000 x .12 x 9/12 = 1,440,000

but a portion of this interest are accrued already an recognize as a payable so we write-them off.

5 0

3 years ago

To ensure that its products best suits the needs of its customers, the market research, manufacturing, and marketing departments

Temka [501]

ANSWER: Verbal.

Otherwise, the answer could be:

Effective.

3 0

3 years ago

The following units of an inventory item were available for sale during the year:Beginning inventory 10 units at $55First purcha

Leto [7]

Answer:

$1150.

Explanation:

Given: Beginning inventory 10 units at $55

First purchase 25 units at $60

Second purchase 30 units at $65

Third purchase 15 units at $70.

First, lets calculate total units of inventory available.

Total inventory available for sales during the year= $(10+25+30+15)= 80\ units$

∴ Total inventory available for sales during the year= 80 units

As given 60 units were sold out of total 80 units.

$80-60= 20\ units$

∴ 20 units of inventory is still remaining.

To determine the cost of unit sold, under LIFO accounting, you start with assumption that you have sold the most recent inventory and work backward.

As 20 units is still available after selling 60 units.

∴ The value of ending inventory= $(10\ units \times \$60 + 10\ units \times \$55)$

The value of ending inventory= $\$600+\$550= \$ 1150$

∴ The value of ending inventory using LIFO is $1150.

6 0

3 years ago

A corporate bond is quoted at a price of 98.96 and has a coupon rate of 4.8 percent, paid semiannually. What is the current yiel

Vadim26 [7]

Answer:

B) 4.85 percent

Explanation:

The computation of the current yield is shown below:

As we know that

Current yield is

= Coupon rate ÷ Price of the corporate bond

= 4.8% ÷ 98.96

= 4.85%

Hence, the current yield is 4.85%

Therefore the correct option is B.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0

3 years ago

Essex Industries is considering the acquisition of Twinsburg Company in a stock-for-stock exchange. The following financial data

Ksju [112]

Answer:

The correct option is A,$8.10

Explanation:

The post merger earnings per share of the combined business is the post merger earnings divided by the post merger weighted average number of shares .

Post merger earnings is $43,740,000

Post merger number of shares is combination of Essex shares before merger plus the equivalent shares given to Twinsburg shareholders in the new company.

Essex shares 5,000,000

Twinsburg(0.4/1*1,000,000) 400,000

Total post merger shares 5,400,000

Earnings per share post merger= $43,740,000/5,400,000=$8.10

The correct option is A.

8 0

3 years ago