When Betty Was Diagnosed as Having a Terminal Illness, She

question 17

True/False

When Betty was diagnosed as having a terminal illness, she sold her life insurance policy to Insurance Purchase,
Inc., a company that is licensed to invest in these types of contracts.Betty sold the policy for $32,000, and Insurance Purchase, Inc.became the beneficiary.She had paid total premiums of $19,000.Betty died eight months after the sale.Insurance Purchase, Inc., collected $50,000 on the policy.The company had paid additional premiums of $4,000 on the policy.Betty's estate is not required to recognize a $13,000 gain from the sale of her life insurance policy; and Insurance Purchase, Inc.is required to recognize a $14,000 gain from the insurance policy.

Develop and analyze pro forma financial statements based on sales forecast assumptions.

Evaluate the feasibility and consistency of financial plans.

Understand the relationship between financial planning, growth, and company-specific financial policies.

Understand the concept of productivity and how it can be improved.

---

Definitions:

Field Names

The identifying labels used to describe the type of data stored in each column of a database or spreadsheet.

Data Type

A classification of data based on the type of information it represents, such as integer, string, or Boolean, affecting the operations that can be performed on it.

Field Name

The identifier of a particular piece of data in a database or data set, which describes the nature or type of data it contains.

Import Spreadsheet Wizard

A feature in software applications that guides users through the process of importing data from a spreadsheet into another program.