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- 27. William has a bakery with total assets of P4,000,000 inclusive of a lot with a book value of P1,200,000. Gross income from sales of bread P300,000 Interest on promissory notes of retail store clients 12,000 Royalties on sale of recipe books 36,000 Dividend income from domestic stocks 10,000 Note that William's total asset i s P2,800,000, excluding the lot. Hence, William's business qualifies as a BMBE. If William obtained a certificate of authority to operate as a BMBE, the following items of operating income are exempt from income tax а. Р 300,000 О Б.Р346,000 О с. Р312,000 O d. P 358,0006 if an insured dies during the grace period of a life insurance policy before paying the required annual premium the beneficiary will receive 1 A the cash value of the policy, if any B the full-face amount of the policy C the face amount of the policy less an required premiums D a refund of any premiums paidDirection: Write TRUE if the statement is true and FALSE if the statement is false. _1. A written partnership contract is required to be prepared whenever a partnership is formed. _2. All partnerships are subject to income tax. 3. A partner's contribution in the form of industry or service is recorded by debiting the account "Industry". _4. In the partnership books, there are as many capital and drawing accounts as there are partners. _5.A partners contribution in the form of noncash assets should be recorded at its fair market value in the absence of an agreed value. _6.A partnership is much easier and less expensive to organize than corporation. 7. A newly organized partnership should always open a new set of books . _8. All partnerships have at least one general partner. 9. Each partner generally has the authority to enter into contracts which are binding upon the partnership 10. The property invested in a partnership by a partner becomes the property of the partnership.…
- 12. Promises to make charitable contributionsa. are exempted from the necessity of considerationb. are not legally enforceablec. are based on promissory estoppeld. may not be valid unless large sums of money are involved4 which of the following policies allows the insured to continue the policy at the end of the policy term with no questions insured, even the insured's death A decreasing term B non-convertible term CEndowment D renewable term7 which of the following statements is correct about an ordinary life policy A premium payment can be increased or decrease at the discretion of the premium payer B the beneficiary designation can be changed to another person only if that person a medical examination C the policy owner may borrow against the cash value of the policy D The named beneficiary must submit evidence of continuing insurable interest in the life of the insured
- Which of the following policy provisions specifies that, if an insured fails to pay a renewal premium within the time granted but the insurer subsequently ace may be restored? OA Grace Period Reinstatement OC Time of Payment of Cairns OD. Entire Contract OB. 00Dicuss the benefits of Mangement principal?3 a joint life policy pays A after the first insured dies B after the last insured dies C after each insured dies D one-half of the face amount after each insured died.
- The Time of Payment of Claims provision requires that an insurance company pay Disability Income benelit, no less frequently than A annually OB semiannually quarterly OD monthly C.5 in order for a conditional receipt to be issued, the applicant must A take a medical examination B sign the application and pay the initial premium C name a beneficiary D elect a settlement option7. What is Insurance? Explain Indemnity and Contingency Insurance?