Answered: ain ONE key financial risk that an…

ain ONE key financial risk that an insurance company is exposed to. Explain the policies and procedures an insurance company put in place to mitigate the exposure of the said risk.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 7Q: Discuss the importance of a company having proper insurance and bonding its employees.

See similar textbooks

Related questions

Q: X, operates a restaurant in San Mateo. The restaurant provides delicious foods and drinks to various…

A: An optional income tax rate of 8% can be availed by the taxpayer after satisfying certain conditions…

Q: due diligence on a potential acquisition for a financial buyer. For this particular transaction, the…

A: Due diligence refers to the review, investigation as well as audit performed or conducted in order…

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: Differentiate between a profit center and an investment center

A: Profit center is a responsibility center where the manager is responsible for both revenue and costs…

Q: You are planning to analyse Zamil Company's December 31, Yecar 6, balance sheet. The following…

A: To prepare the balance sheet the following work is needed:- 1. Calculate Sales 10% = Net…

Q: e) None of these answers. 9. Ahmed's employer provides him with S150,000 of group term ife insurance…

A: Group Term Life Insurance is a type of insurance offered to a group of people under the same policy.…

Q: Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio…

A: The term "liquidate" refers to the process of transforming assets into cash or cash equivalents by…

Q: $393,110 Use the table of annual $8,252 Рayroll expenses to calculate the category expense…

A: Business expenses are an important component of every business undertaken. Each expense contributes…

Q: Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a…

A: Variance analysis is the analysis between standard and actual results to mainly find out the reason…

Q: 10.Which of the following accounts would be increased with a debit? a. Withdrawals account. b.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: What is the percent change from $499 to $299? 67% 16% 40% None of the above

A: The percentage change is calculated as change in value divided by original value

Q: 1. Provide ALL adjustments by the end of 2017 (all journal entries have to have account numbers). he…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Firsts step…

Q: Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Effective Interest Rate- The effective rate of interest is the interest rate that can be paid or…

Q: Question 26 ACME Corporation produces scarves for all occasions in a variety of designer colours.…

A: Cost of goods sold - Cost of Goods Sold is the cost incurred to sell the goods to the customer. The…

Q: Purchases $ 30,526 Selling expense $ 769 Inventory, September 1 5,755 Administrative expense 732…

A: Ans. For computing gross profit of a business we need to add up all the direct income and sales and…

Q: Q Briefly discuss the following issues & aucounting theory 1_ The accoilnta nt canmt complete the…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If $310,000 of 7% bonds are issued at 97, the amount of cash received from the sale is a.$331,700…

A: Cash received from the sale of the bonds = Face value of the bonds - Discount on bonds where,…

Q: what are the disadvantages of bill of exchange?

A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…

Q: The following selected amounts are available for Tamarisk, Inc. $3700 Retained earnings (beginning)…

A: Retained earnings always form part of balance sheet. It is the accumulated profits over the period…

Q: safety manager recommends spending $3,000 on an initiative to reduce accidents in an organization.…

A: Concept of Present value of investment ( Cash flow)

Q: On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre…

A: The question is related to Dividend per share of preferred Stock and common Stock. The details are…

Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: The following information is given to you relating to the operations of PrincehallCorporation: The…

A: Formulas: Gross margin = Net sales - Cost of sales Income from operations = Gross margin - Total…

Q: INGAT Company showed the following information related to the accounts receivable in order to…

A: The accounts receivable are reported in the financial statement at the carrying value. The carrying…

Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…

A: Solution 1: Impact on net income on discontinuing racing bike Particulars Current Total…

Q: Explain two reasons why uncontrollable costs are included in the income statement

A: Introduction:- Uncontrollable costs are cannot be avoided. Which are necessary for production of…

Q: Q.2- Mr. Abdullah's medical and personal expenses include the following: Particulars Prescription…

A: Income tax: Income tax is the tax that an individual is responsible for on their earned income. It…

Q: A machine has a first cost of P97,198.62 and has an expected salvage value after 10 years…

A: Formula: Depreciation rate = 100 / Useful life years

Q: Aaron Heath is seeking part-time employment while he attends school. He is considering purchasing…

A: Net Present Value(NPV) is a capital Budgeting technique by which the present value of all the…

Q: When the manager has the responsibility and authority to make decisions that affect costs and…

A: In a profit center a manager is responsible for both revenue and costs.

Q: 14.When a company has performed a service, but has not yet received payment, it would a. Debit…

A: Introduction:- When a company has performed a service, but has not yet received payment, journal…

Q: small shop in Bulacan fabricates portable threshers for rice producers in the locality. The shop can…

A: Since at break even point Total revenue = Total cost

Q: 16.0n October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half…

A: Under gross method, sales are recorded at Full value. Under Net method, sales are recorded at…

Q: The following account balances were provided by Kate's Consulting Company as of December 31, 2022.…

A: Formula: Net income = Revenues - Expenses.

Q: July 1 Investment of the owner 3 cash sales 13 loan 15 Collection of accounts 20 Purchase returns 29…

A: The cash flow from investing activities includes the cash flow due to sale or purchase of non cash…

Q: 70,500 Salary Expense Accounts Receivable 90,000 Accumulated Depreciation-Equipment 14,800 3,600…

A: Income Statement is a part of Financial Statements. It shows the Net Income earned or net loss…

Q: Meester Corporation has an activity-based costing system with three activity cost pools--Machining,…

A: The assignment of indirect expenses to manufactured commodities is known as overhead allocation. It…

Q: The ability to lower overall inventory warehousing costs is an advantage of which type of system…

Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…

A: Income Statement - Statement of Income includes revenue earned and expenses incurred during the…

Q: A business received cash of P3,000 in advance for services that will be provided later. The cash…

A: Adjusting journal entry (AJE) refers to the entry which the business made in the general ledger due…

Q: How is total compensation calculated? O a. salary + bonus - fringe benefits O b. salary Oc. salary +…

A: We are supposed to be answered only one question in case of multiple questions. Compensation is the…

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been…

A: 1 a) Calculate the material price variance using the formula below: Material price variance =…

Q: its second year of operations. Cash sales Sales on accounts P 750,000 Purchase return & discounts P…

A: Cash basis and accrual basis are two methods for preparing financial statements. On a cash basis…

Q: In 2018, Juan signified his intention to be taxed at 8% income tax rate on gross sales in his 1*…

A: Income tax payable is the current obligation to be paid for the current year by applying a certain…

Q: Mary Maywood opened Maywood Cleaners on March 1, 2022. During March, the following transactions…

A: Since you have posted question with multiple sub-parts we will do the first three sub-parts for you.…

Q: Which of the following should not be taken into account when determining the cost of inventory? A.…

A: As per IAS 2, Inventory Cost of Inventory consists of 1. Purchase cost 2.conversion cost 3.other…

Q: If Apple won an order to sell 500 of its new minicomputers to Australia, but the Australian…

A: The question is related to find the content required for the given question.

Q: The following are the financial statement Quick Ltd. for the year ended 31st December 2020:…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: influenced by the Congress and the White House, what could be the evidence we can find in the system…

A: The Federal Reserve System (sometimes referred to as the "Fed") is the central bank of the United…

Question

Identify and explain ONE key financial risk that an insurance company is exposed to. Explain the policies and procedures an insurance company put in place to mitigate the exposure of the said risk.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1Brief

VIEW

Step 2 Mitigation of Financial Risk

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

what is the role of the Insurance Core Principles as it relates to underwriting risks, in the effective management of insurance companies?
describing how the element of "risk" factors into the concept of insurance. cite a specific type of insurance policy and indicate how risk will play into the issuance of the insurance policy.
For automobile insurance, Describe how risk can be managed. Evaluate the risks in society. Discuss the relationship between risk and this type of insurance. Describe the risk management tools. Discuss the legal principles of risk and this type of insurance.
How tools are used in insurance risk management?
What are the performance measures of an insurance company?
What levels and kinds of risks are properly and mosteconomically passed on to insurance carriers?
If the chance that a risk will occur cannot be reasonably predicted or the possible financial loss to the business calculated, it will be unlikely that an insurance company will provide coverage. True or False
What are the insurance risk management tools?
Who are the target customer of insurance companies?
Discuss using practical example how risk management objectives fascilitatesan insurer’s role as a personal risk manage?
What is the importance of insurance companies?
There are some risks that you can transfer to an insurance company. There are also risks that you may want to retain. We all know the common risks that are transferred to insurance companies: auto, home, health, life. Detail a risk that could be transferred to an insurance company, but isn’t utilized as often as the most common ones mentioned. Explain the risk that can be transferred, when it’s used, and why it isn’t.