You Have Recently Inherited a Sum of Money

question 8

Multiple Choice

You have recently inherited a sum of money.You are purchasing an old Victorian home which was built in 1856.The type of insurance needed on the house would be

• A)HO-1.
• B)HO-4.
• C)HO-6.
• D)HO-8.

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Definitions:

Professional Organization Dues

Membership fees paid to belong to an organization related to one's professional field, which may be tax-deductible.

Employer-provided Vehicle

An employer-provided vehicle is a car or other vehicle that a company provides to its employees for their use, often as part of their compensation or benefits package.

Accrual Basis of Accounting

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash Receipts and Disbursements

An accounting method that tracks the actual cash flow, recording revenues when received and expenses when paid.