Gwen Is in Charge of Accounting at Integrity Insurance Company

question 39

Multiple Choice

Gwen is in charge of accounting at Integrity Insurance Company.Integrity is a publicly-traded insurer.In describing her job,Gwen said,"There aren't too many businesses where you are required to keep two sets of book." Gwen's comment most likely refers to her company

• A)preparing accounting statements using statutory and GAAP accounting.
• B)preparing one set of records for the insurer's managers and another set for the policyholders.
• C)preparing one set of books using dishonest values and another set using current market values.
• D)preparing one set of accounting statements considering investment income and another set of accounting statements not considering investment income.

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Definitions:

Normal Debit Balance

Refers to the expected debit balance in certain types of accounts, like assets, expenses, and losses, indicating an increase in these accounts.

Revenue

The comprehensive sum of money a company makes from its primary business operations, namely selling goods or providing services.

Liabilities

A company's financial debts or obligations that arise during the course of business operations, required to be settled over time through the transfer of economic benefits.

Creditors

Individuals or entities to whom a company owes money or has financial obligations, typically arising from purchase of goods or services on credit.