Title Insurance

question 283

Multiple Choice

Title insurance:

• A) does not bind the title company to insure that the title is as declared in the conveyance from the grantor to the grantee
• B) binds the title company to insure that the title is as declared in the conveyance from the grantor to the grantee
• C) binds the seller to the agreed to price of the property
• D) prevents the buyer from changing the terms of the transaction at the last minute
• E) none of the other choices are correct

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Definitions:

Accumulated Depreciation

The cumulative depreciation expense charged on a fixed asset throughout its useful life.

Contra-Liability

A liability account that is used to reduce the value of a related liability, not commonly used in accounting terminology.

Balance Sheet

A fiscal statement detailing a company's holdings, dues, and the portion owned by shareholders, recorded at a precise time.

Prepaid Rent

An asset account that represents rent payments made in advance of the period to which they relate.