The Massive Amount of Property Damage Caused by Hurricane Andrew

question 12

Multiple Choice

The massive amount of property damage caused by Hurricane Andrew in 1992 precipitated a major insurance crisis in South Florida, when more than _________ in insurance claims was paid.

• A) 1 million
• B) 15 million
• C) 1 billion
• D) 15 billion

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Definitions:

Normal Balance

The side (debit or credit) of an account that is typically increased, reflecting a fundamental principle in accounting.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Prepaid Insurance

Payments made in advance for insurance coverages, recognized as assets until the coverage period lapses and it then becomes an expense.

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not coincide with the calendar year.