Which of the Following Is True About "No-Fault" Automobile Insurance

question 112

Multiple Choice

Which of the following is true about "no-fault" automobile insurance?

• A) It means that if there is no fault on the part of the insured, there will be no payment by the insured's insurance company.
• B) A driver's insurance company pays for the injuries to that driver, regardless of who was at fault in the accident.
• C) No-fault insurance is broad, usually providing coverage for lost wages, pain and suffering, and punitive damages.
• D) No-fault insurance is lower-cost coverage, available only to good drivers who have never been at fault in an accident.
• E) All states have enacted no-fault insurance for automobile accidents.

Grasp the complexities of accounting for contracts under IFRS when cost estimation is challenging.

Understand the installment method of revenue recognition and its impact on deferred and realized gross profit.

Familiarize with recent developments in revenue recognition standards and their implications on accounting practices.

Understand how to compute the contribution margin ratio and its significance in assessing a product's profitability.

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Definitions:

Economic Profit

The difference between total revenue and the total opportunity costs (both explicit and implicit) of all resources involved in the production of goods or services.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and loan payments.

Operate

To control the functioning of a machine, process, or system.

Decreasing-Cost Industry

An industry where input costs tend to fall as the industry as a whole expands its output.