Finance

The acid-test ratio of a firm would be unaffected by which of the foll

The acid-test ratio of a firm would be unaffected by which of the following? A) Inventories are sold on a short-term credit basis. B) Common stock is sold and the money is invested in marketable securities. C) Inventories are sold for cash. D) Accounts payable are reduced by obtaining a short-term loan.     ANSWER […]

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Date: September 19th, 2020

Robert purchased an unendorsed Homeowners 3 policy. He is concerned t

Robert purchased an unendorsed Homeowners 3 policy. He is concerned that if his personal property is destroyed, the insurer will take depreciation into consideration when determining the loss settlement and will pay him less than the amount needed to purchase new property. Which endorsement can Robert add to his Homeowners 3 policy to address this […]

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Date: September 19th, 2020

Jane would like to save money on her homeowners premium. All of the fo

Jane would like to save money on her homeowners premium. All of the following steps will help her to reduce her homeowners premium EXCEPT A) raising the deductible in the homeowners policy to a higher amount. B) shopping around a homeowners policy. C) installing burglar alarms, smoke detectors, and dead-bolt locks. D) adding a personal […]

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Date: September 19th, 2020

Gail lives near a fault line. She added an earthquake endorsement to h

Gail lives near a fault line. She added an earthquake endorsement to her Homeowners 3 policy. All of the following statements about the endorsement are true EXCEPT A) The deductible is expressed as a percentage of the coverage limit rather than as a dollar amount. B) The endorsement also covers landslides and volcanic eruptions. C) […]

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Date: September 19th, 2020

For which of the following situations would there be personal liabilit

For which of the following situations would there be personal liability coverage under the homeowners policy? I. The named insured accidentally injures her husband with a hammer. II. The named insured breaks his wife’s valuable vase while practicing his golf swing. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020