Which One of the Following Would Be an Example of the Driver

question 18

Multiple Choice

Which one of the following would be an example of the driver classification category that determines insurance rates?

• A) John Brown has a 2005 Mazda Miata Convertible.
• B) Harry Anderson lives in Boca Raton, Florida.
• C) Charlie Purciful is 22 years old.
• D) Charlotte Webb has her vehicle in a locked garage.
• E) Barry Evans has just moved to Raleigh, North Carolina.

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Definitions:

Equity Method

An accounting technique used for recording investments in associate companies where the investment is represented by the equity value.

Cost Method

An accounting approach whereby investments are recorded at their original purchase cost, without adjusting for changes in fair value, except for impairments.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.

CICA Handbook

The Canadian Institute of Chartered Accountants Handbook, which contains accounting and assurance standards in Canada.