When estimating the loss reserves in car insurance, the ________________ is used to assign a loss value to each claim. This is because the individual loss amounts are insignificant while the number of claims is large. a. Judgment method b. Loss ratio method c. Average value method
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When estimating the loss reserves in car insurance, the ________________ is used to assign a loss value to each claim. This is because the individual loss amounts are insignificant while the number of claims is large.
Judgment method
Loss ratio method
Average value method
Tabular method
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- Making a prepayment for insurance will have the effect of select one: a) Increasing expenses and decreasing net profit b) decreasing expenses and increasing gross profit c) Increasing expenses and decreasing gross profit d) Decreasing expenses and increasing net profit. In determining the amount of a provision, a company using IFRS should generally measure: a. using the midpoint of the range between the lowest possible loss and the highest possible loss. b. using the minimum amount of the loss in the range. c. using the best estimate of the amount of the loss expected to occur. d. using the maximum amount of the loss in the range.IDENTIFICATION: What area of insurance companies is faced with therisk that estimates of loss reserves may not bereasonable?
- compute the estimated deficiency compute the expected recovery percentage of unsecured creditors compute the amount of estimated loss on assets realizationplease qucikly, thanks! 30 Which of the following is not a contra account? A, Purchase returns and allowances B. Sales returns and allowances C. Accumulated depletion D, Accumulated depreciationA probable loss contingency is reasonably estimated within a range of possible amounts. No amount within the range is a better estimate than any other amount within the range. The amount that should be accrued (reported on financial statements) should be A) zero. B) the lower amount of the range. C) the upper amount of the range. D) the average amount within the range.
- Under IFRS, receivables are to be reported on the balance sheet at: a. amortized cost. b. amortized cost adjusted for estimated loss provisions. c. historical cost. d. replacement cost.When using the allowance method for accounting for bad debts, accounts receivable is reported on the balance sheet at the expected net realizable value. When a particular receivable from a customer ultimately is determined to be uncollectible and is written off, the recording of this event will Group of answer choices A)decrease the net realizable value of the accounts receivable. B)have an effect that is not determinable from the information given. C)increase the net realizable value of the accounts receivable. D)decrease total current assets. e)None of the aboveCompare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense