CPCU 500 Review Questions And Updated Answers 2024.

Which one of the following statements is true about an organization's balance sheet? Select one: A. Total liabilities minus owners' equity equals total assets on the balance sheet. B. The balance sheet shows the financial position of a business on a specific date. C. The balance sheet summarizes revenues and expenses for an accounting period. D. Total assets must equal total liabilities on the balance sheet. - Answer B. The balance sheet shows the financial position of a business on a specific date. The process of creating a marketable investment security based on the expected cash flows from a financial transaction is Select one: A. Trading. B. Investment. C. Securitization.. D. Derivation. - Answer C. Securitization.. One financial risk for an insurer is that the insured will not pay all of the premiums when the premiums are due. This type of risk is called Select one: A. Underwriting risk. B. Credit risk. C. Interest rate risk.