The Distinction Between a Condition Precedent and a Condition Subsequent

question 19

Multiple Choice

The distinction between a condition precedent and a condition subsequent

• A)is important because it determines whether the burden of proof is beyond a reasonable doubt or preponderance of the evidence.
• B)seldom arises in insurance cases.
• C)determines who has the burden of proof.
• D)is important because it determines whether the condition must be express or whether it can be implied.

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Definitions:

Allowance Method

An accounting technique used to estimate the amount of uncollectible accounts receivable and adjust for bad debts.

Uncollectible Accounts

Accounts receivable that a business is unable to collect, often written off as a bad debt expense.

Accounting Equation

A fundamental financial equation representing the relationship between assets, liabilities, and equity (Assets = Liabilities + Equity).

Allowance Method

A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period.