Which of the Following Is Considered to Be a Collision

question 20

Multiple Choice

Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP?

• A)The covered auto was damaged when the car hit a deer.
• B)The covered auto is vandalized by a thief after it is stolen.
• C)The covered auto is damaged when it slid off an icy road and hit a fence.
• D)The covered auto is damaged by a fire after the engine overheated.

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount to gain immediate cash.

Quadratic Formula

A formula used to solve for x given a quadratic equation; x = (–b ± √(b^2 – 4ac)) / 2a.

Expense Equation

The sum of the fixed and variable expenses.

Average Cost

A method to determine the cost of goods sold or inventory valuation where all costs of acquisition are averaged over the total units available for sale.