Centralization of managemen Continuity of life Free transferability of owners Limited liability

Q: What disclosure is made if a loss contingency is reasonably possible?

A: Contingent Liability: Contingent liability is one form of liability that arises based on a…

Q: It pertains to a risk management technique when acquiring a life insurance. * risk avoidance risk…

A: One of the risk management technique is Risk Transfer where one party transfer the risk to another.…

Q: Under IAS 19 Employee Benefits, how is actuarial gain or loss handled?   amount falling outside…

A: IAS 19 deals with the employee benefits. It includes the pension, benefit plans and gratuity etc.

Q: In the world of pension accounting, how does a "asset gain or loss" develop? In the world of pension…

A: The answer

Q: ne purpose of casualty policy’s condition section is to list the property that is to be covered…

A: Casualty policies are taken to prevent the the company from liabilities arising out of damage or…

Q: Explain the characteristics of a liability.

A: A liability is an obligation that a person or organization has, usually in the form of money.…

Q: The payment of a liability

A: The liability is the amount due to be paid by the business to its creditors.

Q: Describe the Comprehensive General Liability Insurance?

A: Answer: Comprehensive general liability insurance is an old concept for general liability insurance,…

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: Types of Trusts?

A: The types of trusts as follows: Living trust: One of the usually shaped trust is an inter vivos…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: Distinguish between one-time, recurring, and tangible and intangible expenses and benefits.

A: An expenditure is a business's operational cost incurred to produce income. It may be described as…

Q: scuss insurance costs and unreimbursed losses

A: Defining and discussing  the terms, Insurance Cost and unreimbursed losses, both the terms are used…

Q: Discuss using practical example how risk management objectives fascilitates an insurer’s role as a…

A: Risk management refers to identifying, analyzing, and reducing the risk by applying different…

Q: Explain the difference between the legal powers and responsibilities of a reciever and liquidator

A: Receiver is the person who has a duty of manage the assets of a company during a law suit, whereas,…

Q: Passive activity income and losses are netted against one another on what form or s

A: Passive Activity Income: 1) Passive income is earnings from a rental property, limited partnership,…

Q: Multiple Choice It is a liability account.

A: Answer : It is a liability account.

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.