Which of the Following Statements Is TRUE

question 83

Multiple Choice

Which of the following statements is TRUE?

• A)Insurance shifts the risk of loss from an insured person to the insurer.
• B)Insurance distributes the costs of accidents from individuals to large groups.
• C)An insurer's profits are derived from the accuracy of its predictions of the frequency and costs of accidents and other insured events.
• D)Both A and B
• E)All of the above

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Definitions:

Settlement

The process of finalizing a transaction where the buyer pays the seller, and the seller transfers ownership of an asset, or the resolution of a dispute.

Maturity Value

The amount that will be paid to the holder of a financial instrument at the instrument's maturity date, including principal and any accrued interest.

Due Date

The date by which a payment, task, or obligation must be completed or fulfilled.

Journalize

The process of recording transactions in a journal or diary, which includes specifying the accounts affected and the amounts, usually as a first step in the accounting cycle.