Which of the Following Statements About the Scheduled Personal Property

question 38

Multiple Choice

Which of the following statements about the scheduled personal property endorsement to the homeowners policy is (are) true?
I.It provides named-perils coverage on scheduled items.
II.It can be used to insure valuable items such as jewelry,silverware,and coin collections.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Operating Cycle

The operating cycle is the time period it takes for a company to purchase inventory, sell it, and convert the sale into cash.

Cash Cycles

The amount of time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by comparing total purchases to average accounts payable.

Inventory Sold

The total cost of goods or merchandise a business has sold to customers during a specific period, key for calculating cost of goods sold.