Which Type of Insurance Is Defined as Reimbursement for Income

question 8

Multiple Choice

Which type of insurance is defined as reimbursement for income lost as a result of a temporary or permanent illness or injury?

• A) commercial
• B) disability
• C) liability
• D) workers' compensation

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Definitions:

Revenue

Income earned by a company from its business activities or sales, before any expenses are deducted.

Cash

Currency and coins, along with funds in bank accounts and other forms of immediately available funds.

Accounting Equation

The foundation of double-entry bookkeeping, stating that assets are equal to the sum of liabilities and owner's equity: Assets = Liabilities + Owner's Equity.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing what the owners or shareholders own outright in the company.