Which of the Following Is an Insurance Coverage That Is

question 16

Multiple Choice

Which of the following is an insurance coverage that is required by law in most states?

• A) Workers' compensation
• B) Employee bonding
• C) Product liability insurance
• D) Loss of key executive coverage

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Definitions:

Allowance Account

An account used in accrual accounting to estimate future adjustments, such as doubtful accounts or returns, affecting the value of asset accounts.

Percentage of Sales

A financial ratio illustrating how a particular figure on the financial statements reflects a certain percentage of the total sales.

Percentage of Receivables

A method used to estimate the amount of bad debt expense by calculating a fixed percentage of accounts receivable to be uncollectible.

Uncollectible Accounts

Accounts receivable that a company has determined are unlikely to be collected and written off as an expense.