Cpcu 540 Study guides, Class notes & Summaries

Financial statemetns often serve as effective windows into an organizations health by communicating information about its financial activities and the results of those activities. Types of Financial Statements Individually, each provides valuable information but when analyzed together, they present a more complete portrait of the organization's financial condition, including its resources, liabilities, and investment decisions. To help ensure consistency among organizations, these statements...

The generally accepted accounting principles (GAAP) matching principle - correct answerHelps businesses to accurately measure the profitability of their activities. By requiring businesses to match expenses to revenues, the matching principle helps businesses to accurately measure the profitability of their activities. The ability to meet day-to-day financial obligations relies on - correct answerAdequate working capital Why is it so important for a corporation to adopt a code of ethics...

Define Vertical Analysis Use of common-size statements to highlight basic relationships among items within a single set of Financial Statements Define Trend Analysis A comparison of Financial Statement Data across 2 or more periods. This Identifies patterns in the past data & then projects these patterns into the future. Define Ratio Analysis Financial Analysis tool used to study the financial condition of an account. 2 or more data items from accounting records of a company are related to...

Define Merger Type of Acquisition in which two or more companies/entities are combined into one Define Acquisition The purchase of one company's stock by another company. Define Consolidation A combination of two or more Business entities into a new entity Define Takeover The assumption of control by one company/corporation over another through merger, acquisition, or in some other type of transaction Define Proxy Contest A strategy for gaining control of a company by obtaining the ...

Which one of the following would best be the reason for maximization of shareholder wealth as a goal of corporate finance 1. To assist in meeting regulatory requirements 2. To maintain a market to raise additional capital 3. To maintain the integrity of the corporate identity 4. To retain customers in a competitive marketplace To maintain a market to raise additional capital Sarbanes-Oxley prompted the SEC to issue interpretive guidance for improved disclosure in the management discus...

Account Receivable Turnover Credit Sales / Accounts Receivable EFFICIENCY Asset Turnover Sales / Total Assets EFFICIENCY Inventory Turnover Cost of Goods Sold / Inventory EFFICIENCY Current Ratio Current Assets / Current Liabilities LIQUIDITY Ability to meet current liabilities w/ assets Acid Test (Quick Ratio) (Current Asset - Inventory) / Current Liabilities LIQUIDITY Ability to pay liabilities w/ cash & liquid assets Debt to Equity Long term debt / SH Equi...

CPCU CORE REVIEW 540 FINANCE AND ACCOUNTING FOR INSURANCE PROFESSIONALS 1ST EDITION

CPCU 540 Exam – Questions & Solutions

Identify the relationship between a corporate finance department and accounting Responsibilities of a Corporate finance department typically include: Acquiring, investing, and managing a companies financial resources, as well as conducting some accounting activities. What types of information can a producer or risk management professional identify by examining an organizations financial Statement? Potential loss exposures or financial liabilities that are neither insured nor adequately addres...

The four primary types of financial statements include the balance sheet, the income statements, the statement of cash flows, and the statement of changes in shareholders' equity The four primary types of financial statements include the balance sheet, the income statement, the statement of changes in shareholders' equity, and the statement of cash flows The four primary types of financial statements include the income statement, the statement of changes in shareholders' equity, the sta...