Jack,owner of Jack's Bar and Grill,was Robbed While Attempting to Deposit

question 20

Multiple Choice

Jack,owner of Jack's Bar and Grill,was robbed while attempting to deposit receipts at his bank's night depository.Jack had purchased an ISO commercial crime coverage form.This loss would be covered under which insuring agreement?

• A)Inside the Premises-Theft of Money and Securities
• B)Outside the Premises
• C)Money Orders and Counterfeit Currency
• D)Inside the Premises-Robbery or Safe Burglary of Other Property

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Definitions:

Payback Method

An investment analysis method that calculates the time required to recoup the cost of an investment, based on the cash flow it generates.

Capital Cost Allowance (CCA)

The Canada Revenue Agency’s term for depreciation when calculating taxes.

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan.

Projected NPV

The estimated Net Present Value of a project calculated using projected cash flows and a specific discount rate.