A Credit to an Asset Account Was Posted to a Revenue

question 111

Multiple Choice

A credit to an asset account was posted to a revenue account.This would cause:

• A)assets to be understated.
• B)liabilities to be overstated.
• C)capital to be understated.
• D)revenue to be overstated.

Analyze the legal principles involved in adjusting insurance claims.

Distinguish between covered and excluded risks in insurance policies.

Recognize the ethical and legal nuances in insurer-insured communication and cooperation.

Understand the distribution of risk in insurance and the impact of misrepresentation on claims.

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Definitions:

Recessions

Periods in an economy when business activities reduce, leading to higher unemployment and lower spending and investment.

Inflations

A widespread rise in prices accompanied by a decrease in money's buying power.

Deficits

The amount by which a government, company, or individual's spending exceeds its income over a particular period of time.

Surpluses

Occurs when the quantity of a good produced exceeds the quantity demanded, often leading to price reductions.