The purpose of other-insurance provisions is to
A) eliminate the need for deductibles.
B) penalize those insureds who carry inadequate amounts of insurance.
C) specify who will pay losses if the insurer is bankrupt.
D) preserve the principle of indemnity.
Answer: D
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The accountant for Casa Corp was preparing a bank reconciliation as of February 28, 2014 . The following items were identified: Casa's book balance $35,900 Outstanding checks 12,050 Interest earned on checking accounts 75 Customer's NSF check returned by the bank 325 There was an error in recording a customer's check as the check was recorded by Casa as $110, but the correct amount of $101 was
recorded by the bank. Casa's adjusted cash balance at February 28, 2014 is a. $23,591 b. $35,64 c. $35,659 d. $47,691
The Starch Company experiences a 20% increase in sales over the previous year. However, gross profit actually decreased by 10% from the previous year. What are some of the possible causes for an increase in sales but a decline in gross profit?
When a company offers bondholders a sweetener to induce them to convert their bonds to common stock, the cost of this inducement is reflected in the
A) operating expenses section of the income statement. B) other revenue/expense section of the income statement. C) extraordinary items section of the income statement. D) common stock account of the balance sheet.
Attempting a turnaround is the best effort to reverse the decline of a business.
Answer the following statement true (T) or false (F)