All of the Following Are Methods of Settling a Loss

question 3

Multiple Choice

All of the following are Methods of Settling a Loss except:

• A)Actual Cash Value.
• B)Fair Market Value.
• C)Guaranteed Replacement Cost.
• D)Replacement Cost.

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Definitions:

Common Stock

Shares entitling the holder to dividends that fluctuate in amount and the right to vote on the company's policy and corporate decisions.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies, recording income based on their share of net earnings.

Common Stock

Shares entitling their holder to dividends that vary in amount and may even be omitted, unlike preferred stock which has a fixed dividend.