One Inland Marine Coverage Form Is the Accounts Receivable Coverage

question 14

Multiple Choice

One inland marine coverage form is the accounts receivable coverage form.In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage?

• A)if the insured cannot pay amounts owed because the purchaser has become insolvent
• B)if the insured cannot pay amounts owed because the purchaser has incurred an insured physical damage loss
• C)if the insured cannot collect accounts receivable because of the destruction of records
• D)if the insured cannot collect accounts receivable because the purchaser extended credit to poor credit risks

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Definitions:

Total Revenue Schedule

A table or graph that shows the total revenue a firm can expect to receive at various levels of output, assuming a constant price.

Demand Linear

A relationship in economics where the amount of a good or service demanded changes linearly with its price.

Marginal Revenue

The rise in income generated by the sale of an extra product or service unit.

Total Revenue

The sum of all revenue a business earns from its operational activities, like goods sales or service provision, prior to expense deduction.