All the Following Are Direct Losses except

question 36

Multiple Choice

All the following are direct losses except:

• A) a car is stolen
• B) a house suffers flood damage
• C) an apartment must be rented after a house is destroyed by fire
• D) a business loses $100,000 in a law suit

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Definitions:

Cash Receipts

The collection of money, including coins, notes, and electronic payments, received by a business during a given period.

Restricted Cash

Funds that are reserved for a specific purpose and cannot be used for general corporate purposes.

Separately Reported

Financial items or activities that are shown distinctly in financial statements to provide clarity and understanding of a company's financial position.

Outstanding Checks

Checks that have been issued and recorded in the account holder's register, but have not yet been cashed or cleared by the bank.