21) Cindy needs a $20,000 renters insurance policy and has selected the $1,000,0

Business & Finance
Tutor: None Selected Time limit: 1 Day

21) Cindy needs a $20,000 renters insurance policy and has selected the $1,000,000 liability with $500 deductible. The insurance company has determined her credit is excellent and has given her the "good" credit rate. If she adds an endorsement to insure $4000 worth of jewelry and the options of identity theft/fraud protection and sewer/sump pump backup protection for her basement, find her annual premium. 

A) $283.00 

B) $399.00

C) $298.00 

D) $223.00

Apr 26th, 2015

C) 298

1,000,000 liability "good" credit: 169

jewelry insurance: 4,000 jewelry/100 x .85 = 34

identity theft/fraud: 20

sewer: 75

Total: 298

Apr 26th, 2015

24) To best measure the liquidity of a business: 

A) calculate the current ratio 

B) calculate the leverage ratio 

C) calculate the working capital 

D) calculate both the working capital and current ratio

Apr 26th, 2015

D) calculate both

working capital is Current assets - current liabilities ($ value)

current ratio is current assets/current liabilities (number of times one can cover CL with CA)

Apr 26th, 2015

25) A vertical analysis of an income statement shows the ratio of each item on the income statement to the: 

A) owner's equity 

B) net sales 

C) total sales 

D) total income

Apr 26th, 2015

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Apr 26th, 2015
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Apr 26th, 2015
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