Which of the Following Is an Example of an Administrative

question 91

Multiple Choice

Which of the following is an example of an administrative expense?

• A) Cost of goods sold
• B) Office supplies expense
• C) Loss from disposing of fixed assets
• D) Advertising expense

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Definitions:

Indemnity Contracts

Agreements that provide protection or security against potential loss or damage, often requiring one party to compensate the other for any loss or damage incurred.

Property Insurance Policies

Contracts that provide financial reimbursement to the owner or renter of a structure and its contents, in case of damage or theft.

Insurable Interest

A requirement that a person seeking to purchase insurance has a legitimate interest in safeguarding the item or life being insured from loss or damage.

Market Value

The amount for which something can be sold on a given market at a specific time.