Which of the Following Pools Would Be the Best Subject

question 56

Multiple Choice

Which of the following pools would be the best subject for a fully-funded self-insurance arrangement?

• A) Automobile physical damage coverage for a national rental car chain, with 100 locations and approximately 3,000 automobiles of similar value at each location
• B) Employment practices liability coverage for a petroleum refinery located in Texas
• C) Medical malpractice liability coverage for all doctors and nurses employed by a group of 3 hospitals in Florida
• D) $50,000 of life insurance on every employee of a life insurance company located in New York, with no physical exam required to obtain insurance

Understand the principles of accounting for contingent liabilities and how they are reported.

Recognize the correct treatment of employee benefits and taxes in financial statements.

Understand the concept of working capital and its importance for short-term liquidity.

Grasp the principles of accounting for leases and long-term assets, including the use of present value concepts.

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Definitions:

Homework Calendars

Tools used by educators and students to organize and plan out homework assignments over a period, usually a month, to manage time effectively.

Differentiate

To identify or ascertain differences between two or more entities or concepts.

Projects

Planned tasks or activities that require effort and organization to achieve specific goals.

Frustrated

Feeling upset or annoyed, often due to inability to change or achieve something, leading to a sense of dissatisfaction and helplessness.