1. Which of the following statement is correct?
a. All the answers are incorrect.
b. Dividends reduces the book value of gross assets to give the firm's net investment in plant and equipment.
c. Goods produced but not sold are considered accounts receivable.
d. On the balance sheet, the firm’s assets are listed in order of their liquidity.
e. Long-term liabilities are liabilities that are due within one year.
2. Assume Lilly Eli & Co is faced with one source of business risk as worker's injury. The probability of worker injury is 0.04 and when the accident (injury) happens, the losses from a worker's injury has medical expenses of $4,000 and lost pay expenses of $50,000. What is the expected loss per worker?
a. $3,240
b. none of the answers is correct
c. $727
d. $2,160
e. $1,944