Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
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Question
Chapter 6, Problem 11DQ
To determine
Explain an internal control that would prevent the payment of insurance premiums on an automobile the company no longer owns.
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The chief effect of reinsurance is that
- insurance premiums are higher
- insurance companies are prevented from engaging in fraud
- insurance companies can offer insurance without fear of a major event causing them to go out of business
In which of these situations might moral hazard arise?a) Insurance companies fail to calculate the risks of accident correctly.b) A company receives an exemption from pollution control legislation.c) A sports team accepts bribes which affect their performance in a game.d) A group of households makes a collective purchase of flood insurance
Which of the following would be accepted as a proof of liability insurance for automobile liability insurance?
An expired insurance card provided by the insurance company
A bound insurance application for which the check offered for payment was dishonored due to insufficient funds
A liability insurance binder issued by the insurance producer in effect on the date the police requested proof of insurance
Insurance declarations page with an expiration date prior to the date of the accident in question
Chapter 6 Solutions
Accounting Information Systems
Ch. 6 - Which document is used by the cost accounting...Ch. 6 - Prob. 2RQCh. 6 - Prob. 3RQCh. 6 - Why should employee paychecks be drawn against a...Ch. 6 - Prob. 5RQCh. 6 - Prob. 6RQCh. 6 - Prob. 7RQCh. 6 - Prob. 8RQCh. 6 - Prob. 9RQCh. 6 - Prob. 10RQ
Ch. 6 - What are the objectives of a fixed asset system?Ch. 6 - How do fixed asset systems differ from purchases...Ch. 6 - What are three tasks of the fixed asset system?Ch. 6 - What information is found on the depreciation...Ch. 6 - Why is it crucial to the integrity of the...Ch. 6 - Prob. 16RQCh. 6 - Prob. 17RQCh. 6 - What document shows when fixed assets are fully...Ch. 6 - Who should authorize disposal of fixed assets?Ch. 6 - Assets used for production are secured in a...Ch. 6 - What is the importance of the job ticket?...Ch. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Discuss some specific examples in which...Ch. 6 - Discuss some service industries that may require...Ch. 6 - Prob. 7DQCh. 6 - If an asset that is not fully depreciated is sold...Ch. 6 - Discuss the fundamental risk and control issues...Ch. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Describe an internal control that would prevent...Ch. 6 - Prob. 13DQCh. 6 - What negative consequences result when fixed asset...Ch. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Which one of the following documents captures the...Ch. 6 - Which of the following are not fixed asset system...Ch. 6 - All of the following controls are likely to apply...Ch. 6 - All of the following data items are likely to be...Ch. 6 - The following are all transactions processed in...Ch. 6 - Prob. 10MCQCh. 6 - PAYROLL FRAUD John Smith worked in the stockyard...Ch. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - FIXED ASSET SYSTEM-FRAUD POTENTIAL Holder Co....Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 1ICCCh. 6 - Prob. 2ICCCh. 6 - Prob. 3ICCCh. 6 - Prob. 4ICCCh. 6 - Prob. 5ICCCh. 6 - Prob. 6ICC
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Similar questions
- (Based on Appendix 12A) Whole-life insurance policies typically can be surrendered while the insured is stillalive in exchange for a determinable amount of money called the cash surrender value. When a company buysa life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuableresource in the event the officer dies, how should the company account for the cash surrender value?arrow_forwardWhole-life insurance policies typically can be surrendered while the insured is still alive in exchange for a determinable amount of money called the cash surrender value. When a company buys a life insurance policy on the life of a key officer to protect the company against the untimely loss of a valuable resource in the event the officer dies, how should the company account for the cash surrender value?arrow_forwardIf 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 Falsearrow_forward
- Under sales on credit, the supplier-customer relationship may be terminated under the law in the following situation except: Select one:a. Death of the customer b. Liquidation or bankruptcy of the customerc. Mental incapacity of the customer or personal guarantor d. Legal suits/litigation commenced against the customerarrow_forwardBodily injury and property damage liability policies protect an insured for Loses for which the insured is legally liable Losses to the business property the insured owns Damage to the insured’s private property caused by a visitor The insured personal medical billsarrow_forwardThere 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.arrow_forward
- Which of the following is NOT an example of a contingency? Salaries payable to top management Potential expense related to repair or replace products sold under warranty Note receivable sold with recourse An amount potentially payable to settle a lawsuit All the other alternatives are contingenciesarrow_forwardCommercial Insurance must legally own the new insurer a. Company A is an established insurer and is primarily interested in having protection against a catastrophic loss arising out of a single occurrence.arrow_forwardProperty insurance will not cover damage to your home caused by a hail storm. True or Falsearrow_forward
- What are the three major classes of loss associated with the ownership or operation of an automobile? What types of insurance coverage protect against each? What automobile coverages protect against each?arrow_forwardIndividuals who believe they relied on misstated financial statements to make a decision andhave suffered losses as a result will issue an action known as aa. Breach of contract.b. Tort.c. Securities litigation.d. Constructive fraud.arrow_forwardWould it be a violation of the Consumer CreditProtection Act to suspend, demote, or transfer anemployee who is subject to a garnishment?arrow_forward
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