With a Simple Delivery Contract, When Is an Insurable Interest

question 38

Multiple Choice

With a simple delivery contract, when is an insurable interest in the buyer created?

• A) When money is transferred
• B) When the items are delivered
• C) When the buyer takes possession
• D) When the goods are identified to the contract
• E) When goods are identified to the buyer

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Definitions:

Adjusting Entry

An accounting transaction recorded to correct or update the financial statements prior to the issuance of the financial statements.

Liabilities

Financial obligations or debts that a company owes to others, often categorized as current or long-term.

Stockholders' Equity

This represents the ownership interest of shareholders in a corporation, calculated as the company's total assets minus its total liabilities.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.