AU 61 Questions with CORRECT Answers
Question:
is measured in terms on net income
Answer:
Measuring BI Loss Exposure
Question:
Net income
Answer:
aka profit.
Question:
Profit = Revenues
Answer:
expenses
Question:
When Expenses are greater than revenue
Answer:
Net Loss
Question:
BI Insurance
Answer:
covers loss income plus continuing expenses when physical damage to covered
property by a covered loss interrupts business operations
Question:
These 4 things must apply for BI to apply
Answer:
1.Interruption of operations
, Question:
Financial element of business Income losses
Answer:
1. Losses of net income
Question:
what would have been earned to what was actually earned
Answer:
Loss of Net Income
Question:
Loss due to continuous expenses
Answer:
consist of expenses that continue to be incurred and paid even though revenue have
stopped
Question:
Loss due to extra expenses
Answer:
consist of above-normal costs incurred to maintain operations, resume operations
and/or keep customers
Question:
extra expenses include
Answer:
rental of temporary equipment, special advertising costs, the costs of finding new
suppliers, and overtime pay
Question:
Time element losses
Answer:
Indirect losses that increase over time
Question:
is measured in terms on net income
Answer:
Measuring BI Loss Exposure
Question:
Net income
Answer:
aka profit.
Question:
Profit = Revenues
Answer:
expenses
Question:
When Expenses are greater than revenue
Answer:
Net Loss
Question:
BI Insurance
Answer:
covers loss income plus continuing expenses when physical damage to covered
property by a covered loss interrupts business operations
Question:
These 4 things must apply for BI to apply
Answer:
1.Interruption of operations
, Question:
Financial element of business Income losses
Answer:
1. Losses of net income
Question:
what would have been earned to what was actually earned
Answer:
Loss of Net Income
Question:
Loss due to continuous expenses
Answer:
consist of expenses that continue to be incurred and paid even though revenue have
stopped
Question:
Loss due to extra expenses
Answer:
consist of above-normal costs incurred to maintain operations, resume operations
and/or keep customers
Question:
extra expenses include
Answer:
rental of temporary equipment, special advertising costs, the costs of finding new
suppliers, and overtime pay
Question:
Time element losses
Answer:
Indirect losses that increase over time
