exploded. The fire severely damaged his freezer. Ant's insurance company wrote hima check to cover the damages, but he had to pay his deductible first. The amount paid1. The storeroom in Ant's restaurant caught fire last week after his hot water heaterto repair the freezer is an example of aloss.a. Liabilityb. Hazardc. Indirectd. Direct

Liability is that which a business owes to someone else. Hazard is harm…

Answered: he storeroom in Ant's restaurant caught…

Business

Accounting

he storeroom in Ant's restaurant caught fire last week after his hot water heater exploded. The fire

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

exploded. The fire severely damaged his freezer. Ant's insurance company wrote him
a check to cover the damages, but he had to pay his deductible first. The amount paid
1. The storeroom in Ant's restaurant caught fire last week after his hot water heater
to repair the freezer is an example of a
loss.
a. Liability
b. Hazard
c. Indirect
d. Direct

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