Finance

Which of the following statements about covered perils and loss settle

Which of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy is true? A) The dwelling is covered on a named-perils basis. B) Personal property losses are settled on an actual cash value basis. C) Losses to the dwelling are always settled on an actual cash value basis. D) […]

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Date: September 19th, 2020

Darla purchased an unendorsed Homeowners 3 policy. While the policy wa

Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force, a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred. Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer? A) […]

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Date: September 19th, 2020

A dwelling with a replacement cost of $150,000 was insured under a Hom

A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof. Ignoring any deductible, what will the insurer pay to settle […]

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Date: September 19th, 2020

Dunweiler Inc, is developing a pro forma income statement for the comi

Dunweiler Inc, is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000. If selling, general, and administrative expenses (SGA) are historically 18% of sales, what are the expected SGA expenses (in dollars)? A) $18,000,000 B) $27,000,000 C) $30,000,000 D) $41,000,000     ANSWER B […]

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Date: September 19th, 2020

Jones, Inc. has a current ratio equal to 1.40. Which of the following

Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the company’s current ratio? A) The company pays back $50,000 of its long-term debt. B) The company collects $500,000 of its accounts receivable. C) The company sells $1 million of inventory on credit. D) The company writes a $30,000 […]

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Date: September 19th, 2020

All of the following statements about conditions under a Homeowners 3

All of the following statements about conditions under a Homeowners 3 policy are true EXCEPT A) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy. B) A waiver or change in any policy provision must be approved in writing by the insurer […]

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Date: September 19th, 2020