100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Final Practice Exam - CPCU 540 Questions and Answers $12.99   Add to cart

Exam (elaborations)

Final Practice Exam - CPCU 540 Questions and Answers

 3 views  0 purchase
  • Course
  • CPCU - Chartered Property Casualty Underwriter
  • Institution
  • CPCU - Chartered Property Casualty Underwriter

Final Practice Exam - CPCU 540 Questions and Answers Sean owns a retail men's 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 Estimate the inventory on hand at the da...

[Show more]

Preview 2 out of 13  pages

  • October 24, 2024
  • 13
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • CPCU - Chartered Property Casualty Underwriter
  • CPCU - Chartered Property Casualty Underwriter
avatar-seller
Pogba119
Final Practice Exam - CPCU 540
Questions and Answers
Sean owns a retail men's 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 - answer Estimate the inventory on hand at the dat of
the loss

Why is it so important for a corporation to adopt a code of ethics? - answer A code of
ethics provides a means of actively managing ethics in the workplace

Current Assets include - answer Inventory

When accountants are able to ignore GAAP when recording some insignificant items,
they are following the - answer Materiality principle

Which one of the following best explains how unrealized capital gains have a significant
effect on a company's business operations? - answer They are a part of the
company's economic income and affect the company's net worth

The four primary types of financial statements include the balance sheet, the statement
of changes in shareholders' equity, the statement of cash flows, and the - answer
Income Statement

Home Housewares, Inc. is a retail store applying for 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 - answer
Home Housewares financial position as of the balance sheet date

The FASB requires organizations to report comprehensive income. Comprehensive
income includes an organization's net income and - answer Unrealized gains on
securities available for sale

Which one of the following describes a section of the statement of cash flows? - answer
Cash flows from operating activities

An insurer's balance sheet lists unearned premium as - answer Liabilities

On an insurer's balance sheet, incurred but not reported (IBNR) losses are - answer
A category of reserves

CES Brokers is considering 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 - answer Notes to the financial statements

Publicly traded companies must file a Form 10-K annually with the SEC. Which one of
the following best describes the information contained in the 10-K - answer It is
similar to the annual report but contains more detailed information about the company

When evaluating the price of equities, the stock market relies on which one of the
following that is not assigned a value on the financial statements? - answer The
entity's reputation int he marketplace

Morgan Taylor is Vice 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 - answer Trend Analysis

Which one of the following statements about vertical analysis based on common-size
statements is true? - answer Its focus is on the relative size of each reported item to
a common item for each year considered

Which one of the following is an example of an efficiency ratio? - answer Accounts
receivable turnover ratio

In financial statement analysis, leverage ratios measure which one of the following? -
answer The extent to which a company has borrowed money

An underwriter is conducting ratio analysis and determines that a company has a
current ratio of 1.2. Which one of the following adjustments to the calculation should the
underwriter make to ensure that the company is able to meet its short-term obligations -
answer Subtract the company's inventory from the calculation

An underwriter is attempting to conduct ratio analysis on a company. The underwriter
notices that the company has $8 million in sales, $5 million in gross profit, and $2 million
in net income. Which one of the following conclusions can the underwriter reach by
calculating the company's net profit margin? - answer 25% of the company's sales is
left after all expenses are paid

The role of PHS is to - answer Provide a cushion to ensure the insurer has enough
resources to meet obligations to its policyholders

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.99
  • (0)
  Add to cart