Timothy Was Driving His Friend Nick to Football Practice

question 5

Multiple Choice

Timothy was driving his friend Nick to football practice.While driving,he was hit by a driver who had coverage of 100/300/50.Tim and Nick each suffered some physical injuries.Based on this information,which of the following is correct?

• A) Timothy's injuries would be covered to $100 and property damage would be limited to $300.
• B) Nick's injuries would be covered to $50,000.
• C) Individually, Timothy and Nick's injuries would be covered to $300,000 each.
• D) The total coverage for Timothy and Nick would be $100,000, and the driver who caused the accident would be covered to $50,000.
• E) The policy would provide a maximum of $100,000 for each of the injured, and no more than $300,000 for total injuries sustained in the accident.

---

Definitions:

Journal Entry

A record in accounting that represents a transaction in the general ledger, where each transaction is recorded with both a debit and a credit.

Posting References

The notations used in accounting to link journal entries to the corresponding ledger accounts, facilitating tracking and auditing.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that the total debits equal the total credits in the financial statements.

Erroneous Amount

An incorrect or mistaken quantity or figure in financial or data reports.