Miles Was Sued in Tort

question 37

True/False

Miles was sued in tort.He previously purchased a liability insurance policy from Western Mutual Insurance Co.Even if the lawsuit against him ultimately fails, that insurance policy may be beneficial to Miles because it will require the insurance company to pay for the costs associated with the trial including Miles actual expenses to have a lawyer defend him.

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Definitions:

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, reflecting the income on the investor's income statement.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies.

Investment Interest

Interest incurred on money borrowed to purchase or hold investment assets, potentially deductible against investment income for tax purposes.

Equity Method

A method of accounting where an investor records its investment in an associate company at original cost and subsequently adjusts the carrying amount for its share of the profit or loss and other comprehensive income of the associate.