Gwen Is in Charge of Accounting at Integrity Insurance Company

question 26

Multiple Choice

Gwen is in charge of accounting at Integrity Insurance Company.Integrity is a publicly-traded insurer.In describing her job,Gwen said,"There aren't too many businesses where you are required to keep two sets of books." Gwen's comment most likely refers to her company

• A)preparing one set of records using statutory accounting and another set using GAAP accounting.
• B)preparing one set of records for the insurer's managers and another set for the policyholders.
• C)preparing one set of books using dishonest values and another set using current market values.
• D)preparing one set of accounting statements considering investment income and another set of accounting statements not considering investment income.

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Definitions:

Seriously Injured

A condition where an individual has sustained severe physical harm, often requiring significant medical treatment.

Intentional Tort

A wrongful act done on purpose that causes harm to someone else, for which the law allows a civil lawsuit.

Common Law

A legal system based on court precedents and customs rather than statutory laws.

Act was Intentional

Describes a situation where an individual's actions are deliberate and purposeful, rather than accidental or negligent.