Which of the Following Statements Is True in Relation to the Balance

question 11

Multiple Choice

Which of the following statements is true in relation to the balance sheet and balance sheet trends of general insurance companies?

• A)They tend to have a high proportion of investments in equity assets.
• B)They tend to have a low proportion of investments in bonds.
• C)There has been little change in the structure of assets between 2002 and 2013, except for a decline in equity investments.
• D)All of the listed options are correct.

Distinguish between short-run and long-run operational decisions in terms of costs and inputs.

Understand the principle of spreading overhead and how output level affects average fixed costs.

Recognize the conditions under which a firm decides to continue operations or shut down in the short run.

Analyze the effects of output changes on costs and the decision-making process in both short-run and long-run scenarios.

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Definitions:

Net Positive Float

The excess of funds available for use due to the time difference between when a check is deposited and when it clears.

JIT System

Just-In-Time System, an inventory management strategy that aligns raw-material orders directly with production schedules.

Accounts Payable

The amounts a company owes to its suppliers or vendors for goods or services received but not yet paid for; a liability on the balance sheet.

Collections Float

Float created while funds from customers’ cheques are being deposited and cleared through the cheque collection process.