Several different values can be considered when determining how much insurance should be carried on a dwelling (the Coverage A limit of the Homeowners 3 policy). The appropriate value that should be used is: A) the home’s market value. B) the home’s actual cash value. C) the home’s appraised value for property tax purposes. D) […]
Which of the following statements is (are) true regarding how the Homeowners 3 policy handles the peril of collapse? I. Collapse is specifically excluded, and there are no exceptions to the exclusion. II. Collapse that is caused by a Coverage C peril is covered. A) I only B) II only C) both I and II […]
Which of the following statements concerning the coverage of collapse of the dwelling under an unendorsed Homeowners 3 policy is true? A) There is no coverage for collapse, regardless of the cause of the collapse. B) Collapse is covered if it is caused by one of the Coverage C perils. C) If collapse is caused […]
In a private placement, the securities are offered and sold to a limited number of investors. Indicate whether the statement is true or false ANSWER TRUE
Pro forma financial statements are an accountant’s way of looking back to see what “might have been.” Indicate whether the statement is true or false ANSWER FALSE
Company A has a higher days sales outstanding ratio than Company B. Therefore, A) other things being equal, Company B has a cash flow advantage over Company A. B) Company A must be collecting its accounts receivable faster than Company B, on average. C) Company A has a higher percentage of cash to credit sales […]
Brian purchased an unendorsed Homeowners 3 policy. Under the policy, Brian’s detached garage is also covered. Which of the following statements regarding coverage on the garage is true? A) The garage is covered on a named-perils basis. B) Any losses to the garage are settled on an actual cash value basis. C) The cost of […]
The three basic types of issues addressed by the study of finance are A) capital budgeting, working capital management, and investment analysis. B) capital structure decisions, working capital management, and sustained profitability. C) capital budgeting, investment analysis, and cash management. D) capital budgeting, capital structure decisions, and working capital management. ANSWER D
Company A and Company B have the same gross profit margin and the same total asset turnover, but company A has a higher return on equity. This may result from A) Company A has a lower debt ratio. B) Company B has more common stock. C) Company A has lower selling and administrative expenses, resulting […]
Ted borrowed $140,000 from ABC Bank to purchase a home and pledged the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the monthly mortgage. Ted set fire to the home. The claims adjuster suspected arson, and an investigation […]
