The Building and Personal Property Coverage Form Provides Several Optional

question 27

Multiple Choice

The building and personal property coverage form provides several optional coverages.Under one optional coverage,no deduction is taken for depreciation when settling a covered loss.This optional coverage is called

• A)extra expense.
• B)agreed value.
• C)replacement cost.
• D)inflation guard.

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Definitions:

Receivables Period

The average time a business spends waiting for its customers to settle their dues.

Credit Sales

Sales for which payment is not received immediately, but the buyer is extended credit to pay at a later date, affecting a company's cash flow and revenue recognition.

COGS

Cost of Goods Sold, which refers to the direct costs attributable to the production of the goods sold by a company.

Effective Annual Interest Rate

The actual return on an investment or the real cost of a loan, accounting for the compounding of interest over a year.