Final Practice Exam - CPCU 540 EXAM Questions
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Terms in this set (134)
Sean owns a retail men's Estimate the inventory on hand at the dat of the loss
clothing store. After a
recent fire, the insurance
adjuster requested copies
of the store's most recent
financial statements. The
adjuster is more likely to
use the statements to
Why is it so important for a A code of ethics provides a means of actively
corporation to adopt a managing ethics in the workplace
code of ethics?
Current Assets include Inventory
When accountants are Materiality principle
able to ignore GAAP
when recording some
insignificant items, they are
following the
,Which one of the They are a part of the company's economic income
following best explains and affect the company's net worth
how unrealized capital
gains have a significant
effect on a company's
business operations?
The four primary types of Income Statement
financial statements
include the balance sheet,
the statement of changes
in shareholders' equity, the
statement of cash flows,
and the
Home Housewares, Inc. is Home Housewares financial position as of the
a retail store applying for balance sheet date
commercial coverage with
ABC Insurance. The
underwriter requested a
copy of Home
Houseware's more recent
financial statements. The
underwriter will use the
balance sheet to
determine
The FASB requires Unrealized gains on securities available for sale
organizations to report
comprehensive income.
Comprehensive income
includes an organization's
net income and
Which one of the Cash flows from operating activities
following describes a
section of the statement
of cash flows?
,An insurer's balance sheet Liabilities
lists unearned premium as
On an insurer's balance A category of reserves
sheet, incurred but not
reported (IBNR) losses are
CES Brokers is considering Notes to the financial statements
purchasing several shares
of Tylo Industries to
diversify their investment
portfolio. Prior to the
purchase, CES would like
detailed information on
long-term debt issued by
Tylo that is nearing
maturity. CES should look
for this information in the
Publicly traded companies It is similar to the annual report but contains more
must file a Form 10-K detailed information about the company
annually with the SEC.
Which one of the
following best describes
the information contained
in the 10-K
When evaluating the price The entity's reputation int he marketplace
of equities, the stock
market relies on which
one of the following that is
not assigned a value on
the financial statements?
, Morgan Taylor is Vice Trend Analysis
President of Underwriting
with Solid Rock Insurance
Company. The president
of her company
announced that he wants
to reduce expenses and
will meet with the vice
presidents of each area. In
preparation for her
meeting with the
president, Morgan
calculated two ratios for
the last five years. First,
she calculated
underwriting expenses as
a percentage of direct
premiums written. Second,
she divided direct
premiums written by the
number of underwriters.
Over the last five years,
underwriting expenses as
a percentage of direct
premiums written have
declined, while the direct
premiums written per
underwriter has increased.
The type of analysis
Morgan performed is
called
Which one of the Its focus is on the relative size of each reported item
following statements to a common item for each year considered
about vertical analysis
based on common-size
statements is true?
& Answers | 100% Verified solutions | Latest!!
Save
Terms in this set (134)
Sean owns a retail men's Estimate the inventory on hand at the dat of the loss
clothing store. After a
recent fire, the insurance
adjuster requested copies
of the store's most recent
financial statements. The
adjuster is more likely to
use the statements to
Why is it so important for a A code of ethics provides a means of actively
corporation to adopt a managing ethics in the workplace
code of ethics?
Current Assets include Inventory
When accountants are Materiality principle
able to ignore GAAP
when recording some
insignificant items, they are
following the
,Which one of the They are a part of the company's economic income
following best explains and affect the company's net worth
how unrealized capital
gains have a significant
effect on a company's
business operations?
The four primary types of Income Statement
financial statements
include the balance sheet,
the statement of changes
in shareholders' equity, the
statement of cash flows,
and the
Home Housewares, Inc. is Home Housewares financial position as of the
a retail store applying for balance sheet date
commercial coverage with
ABC Insurance. The
underwriter requested a
copy of Home
Houseware's more recent
financial statements. The
underwriter will use the
balance sheet to
determine
The FASB requires Unrealized gains on securities available for sale
organizations to report
comprehensive income.
Comprehensive income
includes an organization's
net income and
Which one of the Cash flows from operating activities
following describes a
section of the statement
of cash flows?
,An insurer's balance sheet Liabilities
lists unearned premium as
On an insurer's balance A category of reserves
sheet, incurred but not
reported (IBNR) losses are
CES Brokers is considering Notes to the financial statements
purchasing several shares
of Tylo Industries to
diversify their investment
portfolio. Prior to the
purchase, CES would like
detailed information on
long-term debt issued by
Tylo that is nearing
maturity. CES should look
for this information in the
Publicly traded companies It is similar to the annual report but contains more
must file a Form 10-K detailed information about the company
annually with the SEC.
Which one of the
following best describes
the information contained
in the 10-K
When evaluating the price The entity's reputation int he marketplace
of equities, the stock
market relies on which
one of the following that is
not assigned a value on
the financial statements?
, Morgan Taylor is Vice Trend Analysis
President of Underwriting
with Solid Rock Insurance
Company. The president
of her company
announced that he wants
to reduce expenses and
will meet with the vice
presidents of each area. In
preparation for her
meeting with the
president, Morgan
calculated two ratios for
the last five years. First,
she calculated
underwriting expenses as
a percentage of direct
premiums written. Second,
she divided direct
premiums written by the
number of underwriters.
Over the last five years,
underwriting expenses as
a percentage of direct
premiums written have
declined, while the direct
premiums written per
underwriter has increased.
The type of analysis
Morgan performed is
called
Which one of the Its focus is on the relative size of each reported item
following statements to a common item for each year considered
about vertical analysis
based on common-size
statements is true?
