The Process of Evaluating the Risks Involved with Issuing an Insurance

question 4

True/False

The process of evaluating the risks involved with issuing an insurance policy is called subrogation.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account designated to approximate the amount of a company's accounts receivable that is likely uncollectible.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Maturity Value

The amount that will be payable to the holder of a financial instrument at the date of its maturity; it includes the principal amount plus any accrued interest.

Interest

The cost of borrowing money or the return on investment, calculated as a percentage of the principal sum.