In constructing a pro forma balance sheet, which of the following fills the role of being the plug figure to balance the balance sheet?
A) external financing
B) the change in retained earnings
C) accounts payable
D) accounts receivable
Question 2
Gail lives near a fault line. She added an earthquake endorsement to her Homeowners 3 policy. All of the following statements about the endorsement are true EXCEPT
A) The deductible is expressed as a percentage of the coverage limit rather than as a dollar amount.
B) The endorsement also covers landslides and volcanic eruptions.
C) Aftershocks occurring within 72 hours of an earthquake are considered part of the same occurrence.
D) The endorsement also covers flood losses.
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