In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis: 1  Net profit less standing charges. 2  Turnover plus closing stock, minus opening stock. 3  Net profit plus standing charges. 4  Turnover plus standing charges.

Q: 3.  which of the following transactions will result in the increase and decrease in liability? a.…

A: A) Payment of a loan involves cash payment which is an asset account. Due to this, both asset and…

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: Which of the following is most likely to be reported as an accrued liability? Multiple Choice…

A: Accrued liability is a sort of obligation of an entity that the entity has not paid yet. In other…

Q: interest covering ratio means a. how many times operating profit covers interest expense b. how many…

A: The interest coverage ratio is a financial ratio that measures the ability of the company to meet…

Q: On a classified balance sheet, wages payable is classified as: a.a current liability. b.a long-term…

A: Wages payable: Wages company should pay them to employees but not paid by the company.

Q: Under IFRS, receivables are to be reported on the balance sheet at: a.    amortized cost. b.…

A: Amortization: Amortization is a process in which the cost of intangible assets is spread equally…

Q: What is a liability? a. all debts and obligation owed by the business b. fixed cost fall under the…

A: Statement of financial position helps stakeholders to determine the net worth of the company it also…

Q: In which of the following types of accounts are increases recorded by credits?   Question 8 options:…

A:

Q: Under the direct charge-off method, when a specific account receivable is written off, what account…

A: The journal entries are prepared to record the transactions on a regular basis. The adjustment…

Q: An encumbrance represents the estimated future liabilities for goods or services resulting from…

A: Is the given statement true or false?

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…

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.