An insurance policy must meet all the common law requirements for a contract. Explain what this includes
?There must be an offer, acceptance and consideration. The owner must have legal capacity; that is, he must be an adult of sound mind. Fraud, duress, and undue influence invalidate a policy. In theory, insurance contracts need not be in writing because the Statute of Frauds does not apply to any contract that can be performed within one year, and it is possible that the house may burn down or the car may crash within a year. Some states, however, specifically require insurance contracts to be in writing.
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Which of the following ratios is the best measure in analyzing a company's ability to pay interest on long-term debt and to repay the long-term debt over several years?
a. Debt-to-equity ratio b. Times interest earned ratio c. Debt service coverage ratio d. Acid-test ratio
Items a through j present various phrases or characteristics that may apply to audits, reviews, and compilations. Place an X in the cell if the phrase or characteristic applies to the listed service:
What will be an ideal response?
The decibel, which is the unit measure of sound, is the smallest change in sound that can be detected by the human ear
Indicate whether the statement is true or false.
The goal of reporting realistic figures and never overstating assets or net income applies to the ________
A) conservatism principle B) materiality concept C) disclosure principle D) consistency principle