Which of the Following Statements About Liability Risks Is (Are)true

question 36

Multiple Choice

Which of the following statements about liability risks is (are) true?
I.Future income and assets can be attached to pay judgments if inadequate insurance is carried.
II.There is an upper limit on the amount of loss.

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

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Definitions:

Accruals

The accounting practice of recording revenues and expenses when they are incurred, regardless of when cash transactions occur.

Vendor Invoices

Documents issued by a supplier to the purchaser detailing the sale transaction and requesting payment.

Working Capital Financing Policy

A strategy used by businesses to determine how to fund their operational needs and manage short-term assets and liabilities.

Short-Term Funding

Financial resources borrowed for a short period, typically less than a year, to cover immediate financial needs.