In Risk Management, the Distinction Between Real and Personal Property

question 46

Multiple Choice

In risk management, the distinction between real and personal property is relevant because:

• A)when compared to real property, personal property is highly valued.
• B)real property is a non-depreciating property, whereas, personal property depreciates.
• C)dissimilar properties are exposed to perils with dissimilar likelihoods.
• D)insureds would be more concerned about loosing, or being compensated for, personal property than real property.
• E)risks exposures associated with personal property are not insured.

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Definitions:

Journalized

The process of recording transactions in the accounting journals as part of the accounting cycle.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits, and credits, to ensure entries are recorded correctly.

Journal Amounts

Journal amounts represent the values recorded in a financial journal, depicting transactions in monetary terms for accounting purposes.

Ledger Accounts

Records that summarize all transactions related to a specific account within an accounting system.