What information does a firm’s balance sheet provide to the viewing public? A) a complete listing of all of a firm’s cash receipts and cash expenditures for a defined period of time B) an itemization of all of a firm’s assets, liabilities, and equity as of the balance sheet date C) a report of investments […]
Date: September 19th, 2020
The concurrent causation exclusion in the Homeowners 3 policy specifies that: A) if two or more perils jointly cause a loss, there is no coverage if one of the perils is excluded. B) if the insured has two or more policies in force at the time of the loss, the loss is not covered. C) […]
Date: September 19th, 2020
Which of the following statements about the insurer’s obligation to provide a legal defense under the personal liability coverage (Coverage E) of the homeowners policy is (are) true? I. The insurer agrees to defend the insured only if the suit is not groundless, false, or fraudulent. II. The insurer’s obligation to defend the insured ceases […]
Date: September 19th, 2020
The provisions of the Sarbanes-Oxley Act of 2002, or SOX, apply to all U.S.-based corporations, as well as to foreign corporations conducting business in U.S. markets. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
How is risk defined? What will be an ideal response? ANSWER Risk means different things to different people, depending on the context and on how they feel about taking chances. While certainly acknowledging these different kinds of risk, we limit our attention to the risk inherent in an investment. In this context, risk […]
Date: September 19th, 2020
Past relationships among variables on the balance sheet and income statement are typically POOR predictors of the future. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Which of the following statements concerning coverage under the Homeowners 3 policy is true? A) If a power failure away from the insured dwelling causes a loss, the loss is covered. B) If a Coverage C peril causes a collapse, the resulting damage is covered. C) If an insured peril damages a portion of a […]
Date: September 19th, 2020
The purpose of the appraisal clause in the Homeowners 3 policy is to A) determine the appropriate amount of homeowners insurance to purchase. B) set a value on the home for estate purposes if the homeowner dies. C) settle valuation disputes between the insurer and insured after a loss has occurred. D) determine a mortgage […]
Date: September 19th, 2020
The homeowners policy excludes a loss brought about by two or more perils where one peril is covered under the policy and the other perils are excluded. This situation is called A) ordinance or law. B) proximate cause. C) concurrent causation. D) nullification. ANSWER Answer: C
Date: September 19th, 2020
Given the following financial statements for ACME Corporation, what amount did the company pay in dividends for 2010? Income Statement Balance Sheet Year Ended 12/31/10 12/31/2010 12/31/2009 Sales $1,300,000 Current Assets $50,000 $45,000 Cost of Goods Sold 750,000 Gross Fixed Assets 880,000 650,000 Operating Expenses 200,000 Less Accumulated Depreciation 450,000 350,000 Depreciation Expense 100,000 Fixed […]
Date: September 19th, 2020
