Consider a game of tennis from deuce onward. Starting at the state of deuce, if the server wins, the score is ad-in. If the server then loses the next point, the game is back to deuce. However, if the server wins two points in a row, he wins the game. Similarly, starting at the state of deuce, if the returner wins, the score is ad-out. If the returner then loses the next point, the game is back to deuce. But if the returner wins two points in a row, he wins the game. Let the probability of winning a point be 0.2. Moreover, the winner gets $10, and the loser pays $10. a. Is this game recursive?
b. Draw and properly label the game tree. If there is a state that recurs, do not go beyond that state.
c. What is the probability of winning the game in the state of deuce?
d. What is the probability of winning the game for the server given that he wins the first point after deuce?
e. What is the value of the game at the state of deuce?

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

If a seller prepaid the taxes of $4,400 and the closing is set for may 19, using the 12 month/30 day method what will the buyer owe the seller as prorated taxes?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?