Laura Evans Is Risk Manager of LMN Company

question 15

Multiple Choice

Laura Evans is risk manager of LMN Company.Laura decided to retain certain property losses.All of the following are methods which Laura can use to fund retained property losses EXCEPT

• A)private insurance.
• B)current net income.
• C)funded reserve.
• D)borrowed funds.

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Definitions:

Woven Fabric

A material produced by interlacing yarns in a systematic manner, creating a textile with various possible patterns and strengths.

Straight-line Method

An accounting method for depreciating an asset evenly across its useful life.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life.

Salvage Value

The approximated value left in an asset at the completion of its effective lifespan.