Amounts Owing to an Advertising Company as Per an Invoice

question 21

Multiple Choice

Amounts owing to an advertising company as per an invoice received would appear on the balance sheet as:

• A) accounts payable.
• B) accruals.
• C) provisions.
• D) contingent liability.

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Definitions:

Valued Policy

A type of insurance policy that pays out a predetermined amount in the event of a total loss.

Open Policy

An insurance policy that provides coverage for all shipments or transfers under certain conditions over a specific period of time without the need for individual certificates.

Fair Market Value

The price that a property would sell for on the open market, where both buyer and seller have reasonable knowledge of all pertinent facts.

Increase Of Hazards Clause

A provision in insurance policies that allows the insurer to deny coverage if the insured significantly increases the risk or hazard insured against.