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:

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to arrive at operating cash flow.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Activities

The day-to-day actions that involve the production, sales, and delivery of a company's product or service, as reflected in its income statement.

Statement Of Cash Flows

A financial document that provides a summary of a company's cash inflows and outflows over a specific period.