CPCU 540 2025/2026 Exam Questions
and Answers 100% Guaranteed Success
| Already Rated A+
Stakeholder - 🧠 ANSWER ✔✔Anyone with a financial interest in the
corporation.
Sarbanes-Oxley Act of 2002 - 🧠 ANSWER ✔✔A federal statutory law
governing corporate directors in the areas of investor protection, internal
controls, and penalties, both civil and criminal.
Working Capital - 🧠 ANSWER ✔✔A liquidity measure that is calculated by
subtracting current liabilities from current assets. It is used to determine a
company's ability to finance immediate operations (to buy inventory,
finance growth, and obtain credit).
Capital structure - 🧠 ANSWER ✔✔A corporation's mix of long term debt and
equity.
,Capital Budgeting - 🧠 ANSWER ✔✔The planning and managing of a
corporations long-term investments.
Generally accepted accounting principles (GAAP) - 🧠 ANSWER ✔✔A
common set of accounting standards and procedures used in the
preparation of financial statements to ensure consistency of presentation
and reported results
Statutory accounting principles (SAP) - 🧠 ANSWER ✔✔The accounting
principles and practices that are prescribed or permitted by an insurer's
domiciliary state and that insurers must follow.
International Financial Reporting Standards (IFRS) - 🧠 ANSWER
✔✔Financial standards developed by the International Accounting
Standards Board (ASB)
Fair Value - 🧠 ANSWER ✔✔The market value, either actual or estimated, of
an asset or liability.
Accounting - 🧠 ANSWER ✔✔The classification, analysis, and determination
of the appropriate method of reporting the effects of bookkeeping records in
an organization's financial statements
, Balance Sheet - 🧠 ANSWER ✔✔The financial statement that reports the
assets, liabilities, and owners' equity of an organization as of a specific
date
Current assets - 🧠 ANSWER ✔✔A balance sheet asset classification that
includes, cash and other assets that are expected to be converted into
cash, sold, or exchanged within the business' normal operating cycle,
usually one year
Marketable securities - 🧠 ANSWER ✔✔An asset classification that includes
temporary investments that can easily be converted into cash
Receivables - 🧠 ANSWER ✔✔An asset classification that consists of the
amounts owed to a company by customers and other outsiders
Inventory - 🧠 ANSWER ✔✔An asset classification that consists of goods
available for sale to customers; for a manufacturing company, also includes
raw materials and finished goods.
Prepaid expenses - 🧠 ANSWER ✔✔An asset classification that represents
the amount that has already been paid for services that have not been
received or used.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
and Answers 100% Guaranteed Success
| Already Rated A+
Stakeholder - 🧠 ANSWER ✔✔Anyone with a financial interest in the
corporation.
Sarbanes-Oxley Act of 2002 - 🧠 ANSWER ✔✔A federal statutory law
governing corporate directors in the areas of investor protection, internal
controls, and penalties, both civil and criminal.
Working Capital - 🧠 ANSWER ✔✔A liquidity measure that is calculated by
subtracting current liabilities from current assets. It is used to determine a
company's ability to finance immediate operations (to buy inventory,
finance growth, and obtain credit).
Capital structure - 🧠 ANSWER ✔✔A corporation's mix of long term debt and
equity.
,Capital Budgeting - 🧠 ANSWER ✔✔The planning and managing of a
corporations long-term investments.
Generally accepted accounting principles (GAAP) - 🧠 ANSWER ✔✔A
common set of accounting standards and procedures used in the
preparation of financial statements to ensure consistency of presentation
and reported results
Statutory accounting principles (SAP) - 🧠 ANSWER ✔✔The accounting
principles and practices that are prescribed or permitted by an insurer's
domiciliary state and that insurers must follow.
International Financial Reporting Standards (IFRS) - 🧠 ANSWER
✔✔Financial standards developed by the International Accounting
Standards Board (ASB)
Fair Value - 🧠 ANSWER ✔✔The market value, either actual or estimated, of
an asset or liability.
Accounting - 🧠 ANSWER ✔✔The classification, analysis, and determination
of the appropriate method of reporting the effects of bookkeeping records in
an organization's financial statements
, Balance Sheet - 🧠 ANSWER ✔✔The financial statement that reports the
assets, liabilities, and owners' equity of an organization as of a specific
date
Current assets - 🧠 ANSWER ✔✔A balance sheet asset classification that
includes, cash and other assets that are expected to be converted into
cash, sold, or exchanged within the business' normal operating cycle,
usually one year
Marketable securities - 🧠 ANSWER ✔✔An asset classification that includes
temporary investments that can easily be converted into cash
Receivables - 🧠 ANSWER ✔✔An asset classification that consists of the
amounts owed to a company by customers and other outsiders
Inventory - 🧠 ANSWER ✔✔An asset classification that consists of goods
available for sale to customers; for a manufacturing company, also includes
raw materials and finished goods.
Prepaid expenses - 🧠 ANSWER ✔✔An asset classification that represents
the amount that has already been paid for services that have not been
received or used.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
