When should a company report the cost of an insurancepolicy as an expense?a. When the company first signs the policy.b. When the company pays for the policy.c. When the company receives the benefits from thepolicy over its period of coverage.d. When the company receives payments from the insurance company for its insurance claims.

Q: provides loans for prospective home buyers amount paid for an insurance policy provide financial…

A: The stock market functions according to the buyer and seller's transactions. All the price and…

Q: Insurance premium paid in advance to insurance company is an example of: a. Outstanding expense b.…

A: Insurance premium is an expense for the company

Q: The type of account and normal balance of prepaid insurance would be

A: An asset is a resource controlled by an entity from which future economic benefits flow to the…

Q: The contract between insured and insurer is O a. Coverage O b. Face value Oc. Policy O d. Premium

A: Insurance means where insurance company agree to pay the specified amount to insured person in case…

Q: Life insurance premiums shall be reported as a deductible expense for financial reporting purposes…

A: The outlay which is an ordinary outlay and helps in the normal revenue generation of the business is…

Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…

A: Liabilities that are recorded in the balance sheet are of two types they are -  Current liabilities.…

Q: When a company pays employee healthcare, that is usually considered what kind of activity? a.…

A: Cash activities related to net income are included in operating activities.Cash activities related…

Q: Which of the following would be considered a long-term liability? a. interest payable b.…

A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle…

Q: The formal document that outlines the paym lender and the borrower is: the acceleration clause. O…

A: There is agreement between borrower and lender for payment of loan.

Q: d as being earned evenly over the period of the policy.

A: Given: To explain which statement is true or false as,

Q: Making insurance payments in advance is an example of: Select one: a. An accrued receivable…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the…

Q: The balance of Prepaid Insurance, representing the cost of insurance that remains paid in advance,…

A: Prepaid insurance is a part of current assets that should be recognised as current asset in the…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not…

Q: Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c.…

A: Current liabilities: Liabilities which have to be paid  within one year from the date of the balance…

Q: A payment made by the insurance company would be documented where? a.The progress note b.The…

A: Insurance company makes payments to the insured and these payments are documented as below.

Q: salary to an employee just hired b. Setting up of chart of accounts c. Payment of rent in advance

A: The correct answer is  b). Setting up of chart of accounts

Q: The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium…

A: Insurance is a means of protection from financial loss.

Q: Which of the following statements is false? Multiple Choice O Prepaid insurance is a liability…

A: Current assets are those that provide future economic benefits and are realizable within a time…

Q: Which statement/s is/are correct? SI ABC, a manufacturer of appliances, approved to insure a…

A: The details which are related to the facts about the insurance and its contract as well.  Here…

Q: The expenses which do not vary with the amount of business written in insurance are called: a.…

A: Expenses are the payments that are made by the business to meet its obligations. The expenses can be…

Q: Which of the following people represents several insurance companies but owns the policy…

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

Q: Which of the following is an arrangement by which one party promises to pay a sum of money to…

A: Insurance is a contract between two parties where one party i,e policy holder pays a premium to…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: Accrual concept of accounting state that the revenue in the books of accounts are recorded as and…

Q: Money received from customers for products to be delivered in the future is recorded as: C . revenue…

A: Cash received from the customers will be considered as an asset. Whereas a liability will be created…

Q: i. In each of the above cases (1) to (4), use the 'independent liability' method to calculate the…

A: Insurance: Insurance can be defined as the contract between insurer and insured where the insured is…

Q: Which of the following would not appear in the asset section of an insurance company's balance…

A: Insurance company: For different forms of insurance coverage, insurance firms analyse the risk and…

Q: Which of the following is a liability created when a company receives cash for services to be…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: What is the main difference between stock life insurance companies and mutual life insurance…

A: Insurance companies are often organized as either a stock life company or a mutual company. In a…

Q: Life insurance premiums paid by the company on its officers and employees are considered permanent…

A: Life insurance is a contract between the two parties like the corporation or the individual and an…

Q: Company

A: Insurance is defined as a financial arrangement between the insured & the insurance company…

Q: How much is the contract revenue to date in the year 2019? (In a good accounting form)

A: A company has to recognize revenue and expenses in the year they are earned and incurred,…

Q: In case of life insurance policies with profits, policy holders are given the right to participate…

A: Answer

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: Insurance premium paid in advance to insurance company is an example of: a. Outstanding expense b.…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Which of the following would NOT be shown in the Statement of Profit or Loss? Expired portion of…

A: Income statement shows the income earned and loss incurred by the organization in the financial…

Q: he consideration paid by insured in a contract of in - premium C. prepaid insurance insurance…

A: The insurance companies do different kind of insurance for the companies depending on the risk and…

Q: In terms of Business interruption insurance, the gross profit sum insured can be calculated on the…

A: The gross profit sum insured is calculated by deducting the purchase cost from the turnover. And…

Q: Recorded an adjusting journal entry for the portion of insurance coverage

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: Which statement/s islare true? S1 In accordance with the accrual assumption, the full amount of the…

A: Insurance refers to a legal contract or arrangement by which the company undertakes a guarantee of…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: In Property and Casualty insurance when must an Insurable interest exist? O a. At the Start of the…

A: Life insurance covers the risk of life of insured. Non-life insurance may cover people, property or…

Q: On winding up, which debts or amounts must be paid first? Select one: a. Unsecured debts and loans…

A: Liquidation is the process of putting a company out of business. The company's assets and property…

Q: Prepaid insurance is reported on the balance sheet as a?

A: If insurance permium is paid in adavance in current accounting period. Generally, it is divided in…

Q: what is the annual insurance loss ratio formula?

A: The insurance loss ratio is calculated to know the profits that an insurance company can earn over a…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: In accordance with accrual concept, the full amount of the premium is recognised immediately as…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.