Which of the Following Statements About the Homeowners 3 Policy

question 43

Multiple Choice

Which of the following statements about the Homeowners 3 policy is (are) true?
I.Losses to the dwelling are always settled on an actual cash value basis.
II.Coverage on personal property is limited to $5,000.

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

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Definitions:

Cash Cycle

The duration between the outlay of cash for the purchase of inventory and the collection of cash from customers, reflecting the efficiency of a company's cash management.

Payables

Financial obligations or amounts owed by a business to its suppliers or creditors for goods and services received.

Firm's Cash Cycle

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

Investments In Inventory

Funds allocated towards purchasing goods for sale or raw materials to produce goods, aiming at generating future revenues.