When should a company report the cost of an insurancepolicy as an expense?a. When the company first signs the policy.b. When the company pays for the policy.c. When the company receives the benefits from thepolicy over its period of coverage.d. When the company receives payments from the insurance company for its insurance claims.

Q: fringe benefits and de minimis benefits?

A: Answer  There are various countries helping with various benefits for its employees and pay…

Q: Explain how the obligation for postretirement benefits is measured and how the obligation changes.

A: The answer for this question is given generally as each organisations can following their own…

Q: Compare whole-life and term insurance.

A: Insurance is a legal agreement between an insurer (insurance company) and an insured person.

Q: How do insurance company makes money?

A: The insurance company is referred to as that company whose predominant and primary business is…

Q: At what point would it be necessary to purchase a Personal Liability Umbrella policy?

A: Umbrella policies are relatively inexpensive so they are worth the inevstment.

Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…

A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…

Q: What is the difference between insurance companies and pension funds?

A: Insurance and pensions funds are two quite different types of institutions.

Q: Which of the following is NOT true about a temporary insurance agreement? Select one: a. It can only…

A: Insurance agreement:Insurance agreement is when two parties come together and join hands that one…

Q: ollowing situations does not base an accounting measure on a present value? Prepaid insurance ,…

A: It analyzes comprehension of how accounting measures and financial reporting may or may not require…

Q: E11-3 Preparing the Stockholders' Equity Section of the Balance Sheet North Wind Aviation received…

A: Shareholder's equity, often referred to as stockholders equity, is an account on the company's…

Q: What is the role of an actuary relative to pension plans?What are actuarial assumptions?

A: An actuarial valuation is a kind of evaluation and appraisal of the assets and liabilities of…

Q: escribe what is termed as “contingent liabilities” and discuss their accounting treatment.

A: Liabilities can be define as the group of financial obligations which have to be paid by the…

Q: When is an estimated loss on a long-term contract recognized, both for contracts that recognize…

A: Revenue recognized point of long term contract: A long-term contract qualifies for revenue…

Q: True or False? 1. An insurance contract is derecognized when it is extinguished and when it is…

A: An insurance contract is a contract between the two parties where one party promises to pay the…

Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…

A: Option D

Q: in insurance terminologies this means that a life insurance policy has been paid and active?

A: In insurance terminology premium means that a life insurance policy has been paid and active.

Q: Identify the proper accounting for losses on long-term contracts.

A: Revenue recognition: Revenue recognition principle states that every business organization should…

Q: 7. Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c.…

A: Liability is an obligation for a business. It arises when anything is payable in future or any…

Q: 17. The insurer will issue to the insured before completion of policy Form. *

A: Cover Note A cover note is a temporary certificate of insurance issued by the Insurer before the…

Q: 17. The insurer will issue to the insured before completion of policy form. O A. certificate of…

A: Insurance is a means of protecting oneself against financial loss. It's a sort of risk management…

Q: What is the normal balance for liability accounts?

A: Liability is an obligation that an entity has to pay to its creditors, lenders, suppliers etc.

Q: What is accured expenses with example

A: Definition: Expenses: Expenses are costs incurred for the operations of a business. The costs…

Q: 14. Which of the following is an example for non-trade receivables? a. Dividends receivable. b. All…

A:

Q: The discount allowed to a debtor for early payment is

A: Debtors :- Debtors are the person to whom goods and services are sold on credit.

Q: Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c.…

A: Current liabilities: Liabilities which have to be paid  within one year from the date of the balance…

Q: Liabilities represent amounts owed to outsiders (creditors) expected to be received from customers…

A: The balance sheet represents the financial position of the business. It records the assets and…

Q: iscuss federal deposit insurance coverage. What is its significance?

A: Federal reserve who is authority over banks and is responsible for taking care of interest of the…

Q: what are the pros and cons of being insured by a mutual insurance company vs a stock insurance…

A: There are two types of insurance companies: mutual insurance company and stock insurance companies.…

Q: Distinguish between the accounting treatment of a manufacturer’s warranty and an extended warranty.…

A: WarrantyWarranty is assurance provided to a customer by a seller. It is provided against the…

Q: Accounting theory and standards faced with many problems in measurement, recognition's and disclose…

A: Accounting Standards:- These are the principles set for the framing of the financial reports of a…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.