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3 years ago

What is an insurance premium?

Business

1 answer:

Scilla [17]3 years ago

5 0

Answer:

Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.

Explanation:

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Production Budget

9966 [12]

Answer and Explanation:

The preparation of production budget is shown below:-

Weightless Inc

Production Budget

For the month ending October 31

Units Bath Scale Units Gym Scale

Expected Units to

be sold 150,000 90,000

Desired Inventory,

October 31 12,500 8,000

Total 162,500 98,000

Less: Estimated Inventory,

October 1 -18,000 -10,000

Total Units to be

produced 144,500 88,000

5 0

3 years ago

Larkspur, Inc. reports net income of $91,800 in 2022. However, ending inventory was understated $7,800. What is the correct net

dezoksy [38]

Answer:

$99,600

Explanation:

If the ending inventory was understated that means that they have less of the inventory than they had originally expected, this means that they sold more than they have calculated and therefore have not included the $7,800 in the net income. Therefore, we would need to add this amount to the actual reported net income to get the correct net income for 2022...

$91,800 + $7,800 = $99,600

The correct net income for 2022 is $99,600

3 0

3 years ago

On October 1, 2018, Iona Frisbee Co. issued stock options for 300,000 shares to a division manager. The options have an estimate

Gemiola [76]

Answer:

$300,000

Explanation:

Option expenses to be recognized in the first year ,

= $\frac{N\ *\ FV}{Total\ vesting\ period}$ × period elapsed - Expenses already recognized

wherein N = No of options expected to be vested

FV = Fair value on the grant date

Vesting period = The time period after which the options can be exercised

Thus, after the first year, employee compensation expenses to be recognized

= $\frac{300000 *\ 3}{3\ years}$ × 1 year = $300,000 - 0 = $300,000

Similarly, for the second year, option expenses to be recognized would be,

= $\frac{300000 *\ 3}{3\ years}$ × 2 years - $300,000 = $300,000

Similarly for the third year

= $\frac{300000 *\ 3}{3\ years}$ × 3 years - ($300,000+ 300,000) = $300,000

The journal entry to be passed each year would be

Stock Option Compensation Expense A/C Dr. $300,000

To Stock Options A/C $300000

(Being stock option expenses for the year recognized)

5 0

3 years ago

Read 2 more answers

Burnett Corp. pays a constant $8.15 dividend on its stock. The company will maintain this dividend for the next 12 years and wil

PolarNik [594]

Answer:

$52.91

Explanation:

With regards to the above, we will apply the dividend discount model to come up with the price for share.

Under the dividend discount model, the price for share represents the present value of all its future dividend discounted at the required rate of return.

Since the share has 12 annual equal dividend payments of 8.15 each year, while the required rate is 11%, we can apply the below annuity to arrive at the share price.

(8.15/0.11) × [ 1- 1.11^(-12) ] = $52.91

Therefore, the current share price is $52.91

5 0

3 years ago

Airline a and airline b are the two largest airlines in the country. the chief executive officer of airline a calls the chief ex

Sveta_85 [38]

I would say this type of arrangement between the two largest airlines could be considered a type of cartel whereby most or a high % of the airline passenger market is controlled mostly by two airlines so they think they can raise prices unilaterally.

4 0

4 years ago