Which statement/s islare true? S1 In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2 ABC, a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. S3 Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer.
Which statement/s islare true? S1 In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2 ABC, a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17. S3 Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 1RP
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![Which statement/s islare true?
S1 In accordance with the accrual assumption, the full amount of the premium is recognized
immediately as income when received; instead, the premium is normally regarded as being
earned evenly over the period of the policy.
S2 ABC, a manufacturer of appliances, approved to insure a customer for any loss or damage
that the customer may incur from the use of a purchased appliance which is covered under
PFRS 17.
S3 Under insurance contract, the party that has a right to compensation if the insured event
occurs is referred to as the insurer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd7cbbb-7a1d-4663-b88e-e90b1963e3d4%2Fc48586df-820b-4c6c-bafd-aa692014d18a%2Fdj38xzx_processed.png&w=3840&q=75)
Transcribed Image Text:Which statement/s islare true?
S1 In accordance with the accrual assumption, the full amount of the premium is recognized
immediately as income when received; instead, the premium is normally regarded as being
earned evenly over the period of the policy.
S2 ABC, a manufacturer of appliances, approved to insure a customer for any loss or damage
that the customer may incur from the use of a purchased appliance which is covered under
PFRS 17.
S3 Under insurance contract, the party that has a right to compensation if the insured event
occurs is referred to as the insurer.
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