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CPCU 520 - Lesson 3c (Commercial Underwriting) Questions And Answers With Verified Solutions 100% Correct!!! $10.49   Add to cart
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CPCU 520 - Lesson 3c (Commercial Underwriting) Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 520 - Lesson 3c (Commercial Underwriting) Questions And Answers With Verified Solutions 100% Correct!!!

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  • August 14, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • statement o
  • cpcu 520 lesson 3c commercial underwriting que
  • why do underwriters watch company financials so cl
  • statement of changes in owners equity
  • which section of the change in owners equity would

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  • CPCU

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CPCU 520 - Lesson 3c (Commercial
Underwriting) Questions And Answers
With Verified Solutions 100% Correct!!!

Why do underwriters watch company financials so close? - ANSWER✔✔ Alert in
changes with financial strength


Statement of changes in owner's equity - ANSWER✔✔ A financial statement that
summarizes changes in the owner's capital account as a result of business
transactions during the period.


Which section of the change in owners equity would show you where the
company net income is being generated reinvested versus distributed? -
ANSWER✔✔ Retained earnings - shows dividends and net income to compare


Statement of Cash Flows - ANSWER✔✔ A financial statement that provides
financial information about the cash receipts and cash payments of a business for
a specific period of time.


Statement of cash flows shows what about company cash? - ANSWER✔✔ Sources
and uses


What is the statement of cash flow used for: A - ANSWER✔✔ Determine orgs
need for additional financing


What is the statement of cash flow used for: B - ANSWER✔✔ Determine orgs
ability to generate future cash flow and meet financial obligations

, What is the statement of cash flow used for: C - ANSWER✔✔ Illuminates reasons
for differences in net income and associated cash receipts and disbursements
(Loan intake/payments, Acct receivable increase or decrease, depreciation).


Three other important supplemental financial reports: Notes to financial
statements - ANSWER✔✔ Explains or amplifies info on financial statements


Most important aspect of notes to financial statements for risk management? -
ANSWER✔✔ Summary of loss contingencies - some losses can't be reasonably
estimated until after a financial statement is prepared (so critical to call them out)


A loss contingency is: - ANSWER✔✔ Existing situation, condition, or set of
circumstances involving uncertainty about a gain or loss to a company


Why must a companies exposure to possible loss need to be disclosed? -
ANSWER✔✔ So financial reports aren't nisleading


Statement of loss contingencies disclosures should include - ANSWER✔✔ Nature
of, potential damages, likelihood of occurrence


Three other important supplemental financial reports: securities and exchange
commission filings - ANSWER✔✔ Required quarterly and annual reports with the
SEC along with any material changes that might impact financial condition.


Three other important supplemental financial reports: Company annual report -
ANSWER✔✔ Presents annual company financial performance for stakeholders

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