One benefit of using ratio analysis to compare two firms in the same industry is that ratios are immune to size and current accounting rules. True or False

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Answer 1

False. Ratios can be manipulated by management, and different accounting rules can result in different values for the same ratios.

The Benefits and Limitations of Ratio Analysis

A ratio is the relationship between two figures that are comparable. The figures may be absolute, such as two numbers, or relative, such as two percentages. Ratios are useful in business because they can be used to compare two figures that are not directly comparable. For example, two businesses can be compared in terms of profitability, even if they operate in different sectors and use different accounting standards.

Ratios are useful in business decision making because they can be used to help managers identify trends and set targets. For example, if a company’s sales volume has increased by 20 percent over the last 12 months, this is not particularly useful information in itself. However, if the company’s inventory turnover ratio has also increased by 20 percent, this is a very useful trend because it indicates that the company’s inventory is being sold at a faster rate. The trend may indicate that the company is becoming more efficient in its operations, and managers may decide to set a target to increase inventory turnover to a certain level.

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Related Questions

when investors buy stock with borrowed funds, this is sometimes referred to as group of answer choices use of proxy. purchasing stock on margin. a margin call. a margin residual claim.

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When investors buy stock with borrowed funds, this is sometimes referred to as "purchasing stock on margin".

What is Purchasing stock on margin?

Purchasing stock on margin entails borrowing money from your brokerage and investing it in more securities than you can buy with your available cash. Margin buying allows investors to increase their returns, but only if their investments outperform the cost of the loan.

When should you purchase stock on margin?As interest charges accumulate against you, your debt level rises over time. As debt grows, so do interest charges, and so on. Buying on margin is thus primarily used for short-term investments.The longer you hold an investment, the higher the required return to break even.

When investors buy stock with borrowed funds, this is sometimes referred to as purchasing or buying stock on margin,

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what can managers do in the anticipatory socialization stage that is likely to make employees more successful in the adaptation phase?

Answers

Answer:

Give them realistic job views

Explanation:

The Managers can do in the anticipatory socialization stage which is likely to make employees more successful in the adaptation stage is that managers provide incentives and rewards to their employees if they succeed in achieving the targets of the company.

What is Socialization?

Socialization is an interaction process that builds stable and balanced relationships between individuals and their communities. This process can teach a person to work and carry out daily work and functions according to the rules of society.

Anticipatory Socialization

Anticipatory socialization refers to a process in which a person learns the culture of a group with anticipation of supporting that group. When a person learns the beliefs, meanings, values, and norms appropriate to the status or group he aspires to be. He/She learned how to act in his new role.

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what is the exponential depreciation rate, expressed as a percent to the nearest tenth of a percent, for a car that originally sells for $52,000 when new but exponentially depreciates to $45,000 after 32 months?

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It exponentially depreciates at a rate of 7.75% per year.

What do you mean by Depreciation ?

The depreciated cost can be defined as the  value of an asset after its useful life is complete.It always allows for accounting records.It generally shows  show an asset at its current value. The value of the asset is constantly. Depreciation expense is not an asset .Depreciation means that you write off the value of the asset over it's expected useful life.

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the company has predicted a sales increase of 12 percent. it has predicted that every item on the balance sheet will increase by 12 percent as well. create the pro forma statements and reconcile them. (input all answers as positive values. do not round intermediate calculations.)

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The agency has anticipated a income boom of 12 percentage then the solution is 16372.16.

The required details for Sales in given paragraph

Sales are sports associated with promoting or the quantity of products bought in a given centered time period. The shipping of a carrier for a fee is likewise taken into consideration a sale. The seller, or the issuer of the products or services, completes a sale in reaction to an acquisition, appropriation, requisition, or an immediate interplay with the client on the factor of sale. There is a passing of title (assets or possession) of the object, and the agreement of a rate, wherein settlement is reached on a rate for which switch of possession of the object will occur. The seller, now no longer the purchaser, normally executes the sale and it is able to be finished previous to the duty of payment.

In the case of oblique interplay, someone who sells items or carrier on behalf of the proprietor is called a salesperson or saleswoman or salesperson, however this regularly refers to a person promoting items in a store/keep, wherein case different phrases also are common, such as salesclerk, keep assistant, and retail clerk.

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if the risk premium on the stock market was 6.81 percent and the risk-free rate was 2.55 percent, what was the stock market return?

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The stock market return would be 9.36% if the risk premium on the stock market was 6.81 percent and the risk-free rate was 2.55 percent.

The nominal change in the dollar value of an investment over time can be used to describe a return. The ratio of profit to investment can be used to calculate a return as a percentage.

Every stock market investor should consider the stock market return, which is the amount they gain or lose over time. An indication of the rate of return a stock market has provided from its beginning is the average annual return on equity.

Rp = Rm - Rf

where,

Rp = Risk Premium

Rm = Stock Market return

Rf = Risk free rate = 2.55%

Hence,

Rp = Rm - Rf

6.81 = Rm - 2.55

Rm = 6.81 + 2.5

Risk Premium = 9.36

Therefore, the stock market return is 9.36%

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assume a char variable named big has been declared and assigned a value. also assume a char variable named little has been declared. write a statement that converts the contents of the big variable to lowercase. assign the converted value to the variable little.

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The statement that converts the contents of the big variable to lowercase :

little = Character.toLowerCase(big);

What is the method that converts the letters to lowercase?Lowercase characters are added to a string using the toLowerCase function. There are no arguments required for the toLowerCase() function. In JavaScript, strings are immutable. The provided string is changed into a new string using only lowercase characters and returned by the toLowerCase() function.In JavaScript, strings are immutable. The provided string is changed into a new string using only lowercase characters and returned by the toLowerCase() function.One capital letter, which is changed to a lowercase letter, makes up the entire string "myGreeting."A string is changed to upper case letters using the toUpperCase() function. A string is changed to lower case letters using the toLowerCase() function.Lowercase text is created by using the strtolower() function.

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Consider a population of 3000 people, 1400 of whom are men. Assume that 700 of the women in this population earn at least $60,000 per year, and 500 of the men earn less than $60,000 per year.
What is the probability that a randomly selected person from this population earns less than $60,000 per year?
If a randomly selected person is observed to earn less than $60,000 per year, what is the probability that this person is a man?
If a randomly selected person is observed to earn at least $60,000 per year, what is the probability that this person is a woman?

Answers

The probability that this person is a woman is 0.4375.

Probability is the department of mathematics concerning numerical descriptions of ways probable an event is to occur, or how in all likelihood it's miles that a proposition is proper. The opportunity of an occasion is quite a number between zero and 1, wherein, roughly speaking, zero suggests the impossibility of the event and 1 suggests certainty.

Probability is calculated by way of dividing the number of approaches the occasion can occur via the overall variety of outcomes. probability and odds are exceptional principles. Odds are the opportunity that something takes place divided by way of the possibility that it would not take place.

Calculation:-

required probability

1400/3000 × 500/1400 × 900/1600

       = 0.467

B. 500/1401 = 0.35688

c. Required 700/3000 / 700/3000+ 900/3000 = 0.4375

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pay for performance, basing pay on one's results, is also known as (fill in the blank) pay. multiple choice question.

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Merit is another name for pay for performance, which bases pay on one's performance.

What is performance related pay?

Performance-based compensation attempts to give employees an incentive for maximizing the value they contribute to the firm while also acknowledging that people performing the same job can differ substantially in terms of that value. piecework schedule

Key learnings: Performance-based pay is compensation that is directly related to an employee's contributions to a firm or the financial success of the organization during the pay period.

Performance-related pay (PRP) is a method of controlling compensation that links income advancement to an evaluation of a person's performance, typically as assessed in comparison to pre-established goals. It is also referred to as merit pay or individual PRP.

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which of the following is a source of competitive advantage for a company and is the basis for the product differentiation that tends to dominate the industry? a. dominant design b. public domain c. paradigm shift d. first mover e. technical standard

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The  option that serves as a source of competitive advantage for a company and is the basis for the product differentiation that tends to dominate the industry is  e. technical standard.

What is  competitive advantage?

A competitive advantage can be described as anything  nwhich can provide a company an edge over its competitors,  which do help them to it attract more customers and grow its market shareb however the competitive advantage  can be achieved in these three primary forms which encompass the Cost advantage thtas involves the process of producing a product  as well as providing a service at a lower cost than competitors.

In conclusion, In business, a competitive advantage can be perceiuved as the attribute that allows an organization to outperform its competitors, hence the product differentiation  which can help in  dominating the industry so as to achive the competitive advantage is  technical standard.

Therefore, option E is correct.

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if a buyer discovers an error in a home inspection report regarding a defect affecting the value or desirability of the property, the buyer has from the date of the inspection to file an action to recover any money losses.

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If a buyer discovers an error in an home inspection report which affects the property's value or desirability, they have four years after the date of the inspection to file a legal action to recover money losses.

A qualified home inspector evaluates the condition of the property, including the cooling and heating systems, plumbing, electrical work, water and sewage, and some fire and safety issues. In addition, the home inspector would then look for signs of insect, water, or fire damage, as well as any other issue that may have an impact on the property's value.

Home inspectors are frequently hired by prospective home buyers to research a property and obtain a written report detailing its condition, including assessing necessary as well as recommended repairs, maintenance concerns, and other potentially costly issues. This same physical structure of the home, from of the foundation to the roof, as well as the home's systems, will be evaluated by the home inspector. This inspection will determine whether or not the house is code compliant.

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Reading minutes of meetings held after the date of the financial statements and reviewing the entity's latest interim financial statements are two procedures that can be performed specially to identify the existence of material
subsequent

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Reading minutes of meetings held after the date of the financial statements and reviewing the entity's latest interim financial statements are two procedures that can be performed specially to identify the existence of material

subsequent events.

Effective Board of Director meeting minutes keep the organisation on course and advancing its objective. However, minutes not only include crucial information for your company, but also for your next audit. These incidents are referred to as "subsequent events" moving forward.

Typically, historical financial statements that claim to depict the financial situation as of a given date as well as the results of operations and cash flows for the period concluded on that date are accompanied by an independent auditor's report. But occasionally, after the balance-sheet date but before the financial statements are released, events or transactions take place that materially affect the financial statements and necessitate an adjustment or disclosure in the statements.

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a bank closing one of its branch locations at midday to balance transactions because it is efficient for the bank, even though it is not convenient for customers who want to do their banking during the lunch hour, is an example of a gap between

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An example of a gap between consumers' expectations and management's perceptions.

Servqual is a multidimensional survey tool for measuring service quality by capturing respondents' expectations and perceptions along five dimensions of service quality. Maturity is the time when sales start to plateau from the boom.

At this point, companies will start cutting prices to remain competitive in the face of increased competition. The main difference between services and goods is that services are governed by intangible parts of the overall product. An intangible product involves an act achievement or effort that cannot be physically possessed. The demand curve for prestige products is downward sloping. This is the most common method of measuring subjective elements of service quality.

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TRUE/FALSE. ieps are of limited use in addressing the behavior of students because they set goals only for the student's cognitive and physical progress.

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FALSE. ieps are of limited use in addressing the behavior of students because they set goals only for the student's cognitive and physical progress.

The tests, quizzes, writing projects, and other evaluations that teachers regularly give their students in the classroom are the ones that are best suited to help students learn how to improve. Because these tests' outcomes directly relate to the objectives of classroom instruction, teachers have confidence in their findings.

Reactive rather than preventive steps should be taken when managing behavior. Most students occasionally behave inappropriately. Problems can be ignored if they are short-lived, of restricted scope, and don't get in the way of learning.

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a holder of a $3,000, 10%, 120-day note dated june 2 decides to sell the note at a discount. the note is sold on july 23 at a discount of 12%. find the proceeds.

Answers

The proceeds would be $2,764.10.

What is proceed?
The verb proceed denotes movement or progress. "Ready, set, go!" doesn't have quite the same ring to it, though. The verb proceed simply means to continue, especially after an interruption. It comes from latin procedere, which means "go forward, advance." Advancement and progress are synonyms. It's really difficult is for conversation to flow when people keep interrupting. When crossing a busy street, exercise caution, however if the light turns red, move quickly!

The calculation is as follows:

Principal = $3,000
Discount Rate = 12%
Days = 53 (120 days - 67 days)

Proceeds = Principal - (Principal x (Discount Rate x Days/360))
Proceeds = $3,000 - ($3,000 x (0.12 x 53/360))
Proceeds = $3,000 - ($3,000 x 0.0783)
Proceeds = $3,000 - $235.90
Proceeds = $2,764.10

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hansen corporation adopted dollar-value lifo as of january1, when it had an inventory of 782,000. hansens inventory as of december 31, was 806000 at the year end costs and the cost index was 1.04. what was dvl inventory

Answers

The dollar-value approach of valuing LIFO inventories is a technique of deciding value by means of using “base-year” prices expressed in whole dollars alternatively than the quantity and rate of specific items as the unit of measurement.

Under this method, the taxpayer groups goods contained in the stock into a pool(s).

How is LIFO inventory fee calculated?

To calculate FIFO (First-In, First Out) decide the fee of your oldest inventory and multiply that value by the quantity of inventory sold, whereas to calculate LIFO (Last-in, First-Out) decide the fee of your most current inventory and multiply it by way of the amount of stock sold.

Dollar-value LIFO is an accounting technique used for stock that follows the last-in-first-out model and assigns dollar quantities to stock pieces.

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if the exchange rate is 80 yen per dollar, then a hotel room in tokyo that costs 25,000 yen costs $200. a. true b. false

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If the exchange amount of rate is 80 yen for given per dollar, then any hotel room at tokyo that charge or costs 25,000 yen is costs $200 is False.

Current global change prices are decided with the aid of using a controlled floating change fee. A controlled floating change fee method that every currency's cost is tormented by the monetary movements of its authorities or principal bank. Currency conversion prices vary among groups as every employer manipulates the interbank fee to make a profit.

This is normally finished on volume; the better the volume, the nearer you get to the interbank fee. We encounter plenty of competition that put up interbank prices on line as a bait to hook new clients, but, as soon as clients are onboard, they extrade the fee drastically, now no longer normally withinside the clients' favour.

The hotel room cost in tokyo which charge or costs 25000 yen

then cost = 25000 / 80

cost = $312.5 ( which is not equals to $200)

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What is the type of investment that is used by a governments and companies to raise money by borrowing from investors?.

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Governments and companies use bonds to raise money by borrowing from investors.

Bonds can be a wise choice for investors with less time to recover losses because they typically carry less risk than stocks. Bonds generate income in the form of coupon payments, which are made at regular intervals in a fixed amount.

Typically, the relationship between stocks and bonds is inverse, which means that when the stock market declines, bonds become more desirable.

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which of the following are true statements i. the area under a normal curve is always equal to 1, no matter what the mean and standard deviation. ii. the smaller the standard deviation of a normal curve, the higher and narrower the graph iii. normal curves with different means are centered around different numbers

Answers

The correct statement is the area under a normal curve is always equal to 1, no matter what the mean and standard deviation.

Standard deviation-
The standard deviation in statistics is a measure of the amount of variation or dispersion in a set of values. A low standard deviation indicates that the values are close to the set's mean, whereas a high standard deviation indicates that the values are spread out over a larger range.

Mean- In mathematics, particularly statistics, there are several types of means. Each mean is used to summarize a specific group of data, often in order to better understand the overall value of set data.

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which of the following is a recovery site that may have electricity connected, but there are no servers installed and no high-speed data lines present?

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Cold site is a recovery site that may have electricity connected, but there are no servers installed and no high-speed data lines present.

A backup location that possesses the structural, electrical, and mechanical elements of a computer facility but is devoid of the associated technology. In the case of a major loss to the primary work site or datacenter, the cold site offers electricity, cooling, and/or office space where workers may wait.

A backup facility known as a "cold site" is one that has little to no gear installed. A cold site is simply an office with standard amenities including power, a cooling system, air conditioning, and other communication tools.

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Match each cloud computing definition on the left with the appropriate characteristic on the right. Each characteristic may be used once, more than once, or not at all.
Provides resources to a single organization. [Private cloud]
Combines public, private, and community cloud resources from different service providers.
[Hybrid cloud]
Designed to be shared by several organizations.
[Community cloud]
Provides computing resources that are accessible by the general public.
[Public cloud]
Keeps one organization data separate and secure from any other organization using the same service provider.
[Private cloud]

Answers

Provides resources to a single organization. [Private cloud]

Combines public, private, and community cloud resources from different service providers. [Hybrid cloud]

Designed to be shared by several organizations. [Community cloud]

Provides computing resources that are accessible to the general public [Public cloud]

Keeps one organization's data separate and secure from any other organization using the same service provider. [Private cloud]

Private cloud gives an excessive stage of protection and privateness to records through firewalls and internal website hosting. It also guarantees that operational and touchy statistics aren't handy to 0.33-birthday party companies. HP statistics centers, Microsoft, Elastra-non-public cloud, and Ubuntu are examples of private clouds.

Within the public cloud area, AWS offers services consisting of the Amazon Elastic Compute Cloud (Amazon Amazon EC2), which gives infrastructure and offerings over the public internet and is hosted at an identified AWS location (as an instance, Canada principal ).

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ou buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. what is the internal rate of return?

Answers

Total answers posted by the expert is: 10813

ou buy a new piece of equipment for $7,360, and you receive a cash inflow of $1,000 per year for 10 years. what is the internal rate of return?

Total answers posted by the expert is: 10813

If you check an annuity table you will find the factor for 6% at 10 years is 7.3601.

So the value is 7,360 which offsets the cost of the new equipment so the internal rate of return is 6%.

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which of the following would result in a cash outflow from investing activities? multiple choice question. purchase of the company's common stock for cash. purchase of inventory for cash. purchase of a machine for cash.

Answers

'Purchase of a machine for cash' would result in a cash outflow from investing activities. The correct answer option is D.

Cash outflow from investing activities is one of the sections on the cash flow statement that defines how much cash has been spent in many investment-related activities in a specific time period. Investing activities include investments in securities, purchases of physical assets, or the sale of securities or assets.

Negative cash outflows is often associated with an organization's poor performance. However, negative cash outflow from investing activities might be because of the significant amounts of cash being invested in the long-term health of the organization, such as research and development.

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Based on this information, what was yesterday’s price for parchar special effects? a. $114.36 b. $109.47 c. $106.81 d. $119.25

Answers

Based on this information, what was yesterday€™s price for parchar special effects $119.25.

Stocks are taken into consideration to be liquid belongings due to the fact you could without problems purchase and promote them at the inventory market. Bonds, meanwhile, are taken into consideration to be much less liquid (aleven though now no longer absolutely illiquid) due to the fact you can keep onto them till maturity.

The finest distinction among shares and bonds are their danger tiers and their go back potential. Speaking very generally, shares have traditionally provided better returns than bonds however additionally include improved danger. While you can earn greater with shares, you can additionally stand to lose greater.

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A company sells merchandise to a customer on credit. The journal entry to record this transaction would include a debit entry to the Accounts BLANK account.
receivable

Answers

Receivable

Accounts receivable are amounts owed to a business by customers for credit sales invoiced to them on account. When a customer pays an invoice, an account receivable collection journal entry is required to clear the amount on their account

When a company sells merchandise to a customer on account the entry would include?

When Merchandise Are Sold on Account. When merchandise are sold on account, the two accounts involved in the transaction are the accounts receivable account and sales account. The accounts receivable account is debited and the sales account is credited.

What is the journal entry to collect from a customer on account?

A company sells merchandise to a customer on credit. The journal entry to record this transaction would include a debit entry to the Accounts BLANK account. receivable

Where the sale of merchandise on account is recorded?

Likewise, as the sales revenue account is a source of income, any rise in income will be credited. Therefore, a merchandise sale made on credit would be recorded in a sales journal.

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Select the correct statement regarding opportunity costs. Opportunity costs need not be considered in decision making. Opportunity costs are not recorded in a financial accounting records. Opportunity costs represent sunk costs. All of these. Engineering design costs generally referred to as Batch level costs Faculty-level costs. Unit -level costs Product- level costs. ServicePro provides two kinds of services During the most recent accounting period, the two service lines produced the following operating results: If the company stops providing Service 2: The company 's income will decrease by $1, 500 per year. The company's income will increase by $1, 500 per year. The company's income will decrease by $3, 500 per year. The company's income will decrease by $3, 500.

Answers

The correct statement regarding opportunity costs is option B. Opportunity costs are not recorded in a financial accounting records. Opportunity costs represent sunk costs.

Engineering design costs generally referred to as Batch level costs Faculty-level costs. Unit -level costs Product- level costs. TRUE

If the company stops providing Service 2, d. The company's income will decrease by $1,500 per year.

What is an income?

The concept “income” generally implies the total money, property, and other transfers of value gotten within a period of time in exchange for services or products. Income is also considered from the angle of the context in which the idea is applied or utilized.

Therefore, the correct answers are as given above.

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What do we call money spent by the government?.

Answers

The money spent by the government is called government spending or expenditure of the government.

What government?

A government refers to an administrative system developed to mnaintian the functioning of any country by maintaining peace and order by implementing laws and legislation of the constitution and providing better facilities to its citizens.

Government consumption, government subsidies, and interest charges make up the three main categories of government spending or expenditure.

The term "budget deficit" is frequently used to describe government spending and the level of the national debt when expenses overtake revenues.

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What are the 2 purposes of a checking account?.

Answers

A checking account is a type of bank account that enables simple deposits and withdrawals of cash for everyday uses.

What is a checking account?A checking account is a sort of bank account that enables simple deposits and withdrawals of cash for everyday uses. This could involve depositing a check you receive, withdrawing money using a debit card, or setting up direct deposit for your paychecks.Checking accounts are among the most accessible types of bank accounts, giving you quick access to your money. They frequently provide limitless deposits and withdrawals (however, depending on the bank, they could have daily maximums ranging from $300 to $5,000).A checking account's main function is to secure your funds for a brief period of time so that they are accessible when you need them to cover expenses like bills. A portion of your earnings can be transferred to a savings or investment account where they can grow over time if you choose to have your paychecks directly deposited into your checking account (direct deposit). Checking accounts shouldn't be used for long-term objectives, like saving for a house, because you only earn a tiny amount of interest—usually around.04 percent—on them.  There is always the chance to earn a little bit more interest if you keep more money in your account, though, as some banks may offer different tiers for their checking accounts.

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what will be the effect of a technological development that reduces marginal cost in a competitive market

Answers

An increase in revenues and economic benefit for each firm and the industry would result from such new technology that lowers marginal costs, but in the long run, there would be a progressive loss of relative competitive advantages until a new equilibrium was achieved.

Market pricing will decrease and output will increase when the supply curve for the market shifts to the right. There will be no profit for any firm since the price will have dropped sufficiently for no profit to be made by any firm.

What is perfectly competitive market?

In a market system known as perfect competition, every company or corporation is offering the same good or service, and because they have no influence over their product prices, they are more likely to be price takers. Customers in this market have complete or perfect knowledge of the goods being sold. They are aware of whose company and what price a given product is sold for. There are no impediments to entry or exit for such firms, and there is full resource mobility, especially in terms of labor.

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When must you sign a deposit slip? a. you must always sign a deposit slip. b. you only need to sign a deposit slip when receiving cash. c. you only need to sign a deposit slip when using an atm, rather than depositing at the bank. d. you never need to sign a deposit slip. your account information is enough. please select the best answer from the choices provided a b c d

Answers

One must sign a deposit slip when one needs to sign a deposit slip when receiving cash (option b).

What is a deposit slip?

A deposit slip is a small document used when depositing into a bank account. It typically lists out the date, name of the account holder, account number, and amount of deposit. It also contains a space for the customer to provide their signature, which is necessary to verify the transaction. The deposit slip is used as proof of the deposit and is typically kept by the bank for their records. Customers need to make sure that their deposit slip is filled out correctly, to ensure that the funds are deposited into the correct account.

A deposit slip is required to document and record the deposit of cash. This information is important for both the depositor and the bank. The depositor needs to ensure that the amount of cash deposited is accurate and credited to the correct account. The bank needs to ensure that proper accounting procedures are followed and that the deposit is accurately documented and recorded.

It can be concluded that one must sign a deposit slip when one needs to sign a deposit slip when receiving cash (option b).

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When shopping for life insurance, you should look for: a. a company with a low premium rate and a good rating. b. a company that gives you benefits, like rewards points. c. a company with an agent that you like and trust. d. a company that has many policies to choose from. please select the best answer from the choices provided a b c d

Answers

a. A company with a low premium rate and a good rating.

What is life insurance?

A contract between an insurance policyholder and an insurance company in which the insurer agrees to pay a quantity of money in exchange for a premium upon the demise of an insured person or after a specific amount of time is known as life insurance. Life insurance policies frequently used include Term life insurance and Whole life protection. All-encompassing life insurance protects a person from the possibility of suffering a financial loss in the event of death. It is a pure insurance protection contract, much like auto, house, or health insurance, and it does not involve a savings plan. The owner purchases a specific level of insurance and pays a yearly payment determined by the age of the insured.

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