Answer:
Payback period is 6.5625 years
Explanation:
All amounts are in $
Item outflow inflow balance
Year 0 387,000 0 (387,000)
Year 1 0 64,000 (323,000)
Year 2 0 64,000 (259,000)
Year 3 0 64,000 (195,000)
Year 4 0 64,000 (131,000)
Year 5 0 64,000 (67,000)
Year 6 0 64,000 (3,000)
The remaining $3000 will flow in
= (3000/64000) × 12
= 0.5625
Payback period is 6.5625 years
Answer:
Statement A
Explanation:
The 2 statements are:
A: The firm Delta Insurers typically affirms claims within 120 days after it receives proof of loss statements
B: The firm Delta Insurers typically denies claims within 120 days after it receives proof of loss statements
The explanation for this is:
- The company is an insurance company
- An insurance company holds funds for their customers; to be released when the customer is less privileged or in a bad situation, depending on the type of insurance made
- There is car insurance, house insurance, life assurance, etcetera.
- So if the insurance company receives proof of loss statements from the customer, it will release funds to solve the customer's dire need
- In this case, it takes 120 days to verify, process and then agree (affirm) to release funds (claims) to the affected customer.
So the answer is Statement A.
Performing calculations and using equipment
Answer:
The correct answer is (C) Reported as a current asset.
Explanation:
The current asset, also called a current or liquid asset, is the asset of a company that can become liquid (become money) in less than twelve months. For example, bank money, stocks, and financial investments.
We can also understand the current asset as all those resources that are necessary to carry out the day-to-day activities of the company. It is known as current because it is a type of asset that is in continuous movement, can be sold, used, converted into liquid money or delivered as payment without too much difficulty.
Is this an open ended question ? Or multiple choice ?
