Ron's PAP Has a $500 Deductible for Collision and a $0

question 24

Multiple Choice

Ron's PAP has a $500 deductible for Collision and a $0 deductible for Other Than Collision. Ron collides with a wild deer,causing $6,000 of damage to his car. He can recover from the insurer:

• A)$6,000
• B)$5,500
• C)$6,500
• D)$0

---

Definitions:

Liability

A financial obligation or debt that an individual or company owes, which is required to be paid to creditors.

Manufacturing Firm

A company engaged in the transformation of raw materials, components, or parts into finished goods that meet a market's demand.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to consumers.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.