To Have an Insurable Loss, All of the Following Criteria

question 68

Multiple Choice

To have an insurable loss, all of the following criteria apply EXCEPT

• A) the potential loss cannot be reasonably predictable.
• B) the loss must be accidental.
• C) the loss should not be catastrophic for the insurance company.
• D) the loss should be beyond the control of the insured.

---

Definitions:

Accrued Revenues

Revenues that have been earned but not yet received in cash or recorded at the statement date.

Current Liabilities

Short-term financial obligations due within one year, including accounts payable, short-term debt, and other accrued liabilities.

Balance Sheet

A financial statement that presents a company's financial position, including assets, liabilities, and equity, at a specific point in time.

Closing Process

The process of transferring the balances of temporary accounts to permanent accounts at the end of the accounting period.