Hank Bought a Farm That Had an Old Barn

question 45

Multiple Choice

Hank bought a farm that had an old barn.He noticed one day that the roof of the barn was swaying in the wind.Hank went to see his insurance agent and he insured the barn for $20,000.The agent didn't ask if the roof might collapse,and Hank didn't say anything about it.One week later there was a strong wind and the roof collapsed.Assuming the insurer can prove it,under what legal grounds could the insurer deny payment of the claim?

• A)estoppel
• B)concealment
• C)warranty
• D)misrepresentation

Understand the impact of adjusting entries on financial statements.

Identify and record revenue recognition for subscriptions and other unearned revenue.

Calculate depreciation expense and understand its effect on book value.

Recognize the importance and process of recording office supplies expense.

---

Definitions:

Psilocybin

A naturally occurring psychedelic compound produced by certain types of mushrooms, known for its role in producing psychoactive effects when ingested.

Mescaline

A psychedelic compound derived from certain cacti, known for its hallucinogenic effects.

LSD

Lysergic Acid Diethylamide, a potent psychedelic drug that induces hallucinations and altered sensory perception.

Cannabis

A drug derived from the Cannabis plant, used for recreational or medicinal purposes, known for its psychoactive properties.