Payments Made on Claims Should Be

question 16

Multiple Choice

Payments made on claims should be:

• A) Always treated as an expense for the period in which the payment is made.
• B) Only treated as an expense in the period if the claim is also settled in that period.
• C) Used to reduce the liability for claims settled in previous periods.
• D) Only treated as an expense in the period if the claim is also settled in that period and used to reduce the liability for claims settled in previous periods.
• E) None of the given answers.

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