Condominium association The following is an excerpt from a telephone conversation between Gail Richie, President of Flanders Supplies Co., and Gary Weir, Owner of On-Time Employment Co.Gail: Gary, you’re going to have to do a better job of finding me a new computer programmer. That last guy was great at programming, but he didn’t have any common sense.Gary: What do you mean? The guy had a master’s degree with straight A’s.Gail: Yes, well, last month he developed a new financial reporting system. He said we could do away with manually preparing a work sheet and financial statement. The computer would automatically generate our financial statements with “a push of a button.”Gary: So what’s the big deal? Sounds to me like it would save you time and effort.Gail: Right! The balance sheet showed a minus for supplies!Gary: Minus supplies? How can that be?Gail: That’s what I asked.Gary: So, what did he say?Gail: Well, after he checked the program, he said that it must be right. The minuses were greater than the pluses…Gary: Didn’t he know that supplies can’t have a credit balance—it must have a debit balance?Gail: He asked me what a debit and credit were.Gary: I see your point.Comment on:(a) the desirability of computerizing Flanders Supplier financial reporting system,(b) the elimination of the work sheet in a computerized accounting system, and(c) the computer programmer’s lack of accounting knowledge. Briefly describe three of the following commercial property insurance coverage’s. Provide an example of each.Builders riskCondominium associationEquipment breakdownDifference in conditionsInland marineOcean marine A store is insured for liability coverage under a business owners policy. Explain whether the following situations are covered under the business owners policy. Treat each situation separately.A clerk accidently injures a customer with a shopping cart. Both the business owner and the clerk are sued.A customer slips on a wet floor and breaks a leg.The business owners have a customer arrested for shoplifting. The customer is innocent and sues for damages. ……………………… When the clerk accidentally injured the customer with a shopping cart, the customer will be compensated by the insurance company because under the business owner’s policy, such is an insurable risk. This is because under the business owner’s policy the liability portion of a business owner’s policy offers coverage for third parties who suffer bodily injury, property damage, advertising injury or personal injury caused by the business’s owner or employees. ……………………….
Condominium association
The following is an excerpt from a telephone conversation between Gail Richie, President of Flanders Supplies Co., and Gary Weir, Owner of On-Time Employment Co.
Gail: Gary, you’re going to have to do a better job of finding me a new computer programmer. That last guy was great at programming, but he didn’t have any common sense.
Gary: What do you mean? The guy had a master’s degree with straight A’s.
Gail: Yes, well, last month he developed a new financial reporting system. He said we could do away with manually preparing a work sheet and financial statement. The computer would automatically generate our financial statements with “a push of a button.”
Gary: So what’s the big deal? Sounds to me like it would save you time and effort.
Gail: Right! The
Gary: Minus supplies? How can that be?
Gail: That’s what I asked.
Gary: So, what did he say?
Gail: Well, after he checked the program, he said that it must be right. The minuses were greater than the pluses…
Gary: Didn’t he know that supplies can’t have a credit balance—it must have a debit balance?
Gail: He asked me what a debit and credit were.
Gary: I see your point.
Comment on:
(a) the desirability of computerizing Flanders Supplier financial reporting system,
(b) the elimination of the work sheet in a computerized accounting system, and
(c) the computer programmer’s lack of accounting knowledge.
Briefly describe three of the following commercial property insurance coverage’s. Provide an example of each.
Builders risk
Condominium association
Equipment breakdown
Difference in conditions
Inland marine
Ocean marine
A store is insured for liability coverage under a business owners policy. Explain whether the following situations are covered under the business owners policy. Treat each situation separately.
A clerk accidently injures a customer with a shopping cart. Both the business owner and the clerk are sued.
A customer slips on a wet floor and breaks a leg.
The business owners have a customer arrested for shoplifting. The customer is innocent and sues for damages.
……………………… When the clerk accidentally injured the customer with a shopping cart, the customer will be compensated by the insurance company because under the business owner’s policy, such is an insurable risk. This is because under the business owner’s policy the liability portion of a business owner’s policy offers coverage for third parties who suffer bodily injury, property damage, advertising injury or personal injury caused by the business’s owner or employees. ……………………….
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