Which of the Following Is (Are)covered Under a Claims-Made Policy

question 29

Multiple Choice

Which of the following is (are) covered under a claims-made policy?
I.Claims arising out of occurrences which take place during the policy period,regardless of when the claim is made
II.Claims first reported during the policy period,provided the event occurred after a retroactive date stated in the policy

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against the cost of a fixed asset, reducing its book value over time.

Permanent Account

An account that carries its ending balance over to the next accounting period, typically representing real accounts like assets, liabilities, and equity.

Closing Process

The steps taken at the end of an accounting period to prepare accounts for the next period, including zeroing out temporary accounts.

Closing the Books

Closing the books is an accounting process involving updating ledger accounts at the end of an accounting period to prepare financial statements.