Everything Else Constant, the Higher the Deductible on Your Car

question 213

True/False

Everything else constant, the higher the deductible on your car insurance policy, the higher the premium for your car insurance.

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Definitions:

Residual Value

The estimated amount that an asset is expected to sell for at the end of its useful life, subtracting any disposal costs.

Impairment Loss

A recognized reduction in the recoverable amount of an asset, indicating that its market value has dropped below its book value on the balance sheet.

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation amount.

Capitalize Development Costs

The accounting practice of adding the costs associated with developing a new product or service to the balance sheet as an asset, rather than expensing them.