You Have Cash Value Coverage for Your Personal Property on Your

question 18

Multiple Choice

You have cash value coverage for your personal property on your homeowner's policy. A camera that cost you $300 eight years ago had a life expectancy of 10 years. The camera was stolen, and a new one will cost only $200. How much will the insurance company pay?

• A) $60
• B) $100
• C) $200
• D) $300

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Definitions:

Functional Currency

The primary currency of operation chosen by a business, usually the local currency where the business primarily generates and spends cash.

Income Statement

A report detailing a business's income and expenditures throughout a given time frame, which ultimately reveals a profit or deficit.

Sales

The exchange of goods or services for money, representing revenue for a company.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.