Albert Left His Vehicle Parked on the Street in the Front

question 43

Multiple Choice

Albert left his vehicle parked on the street in the front of his house when he went on vacation. While he was gone, his street flooded and his car was severely damaged. This damage would be covered under his

• A) Uninsured motorist's protection.
• B) Property damage liability coverage.
• C) Collision coverage.
• D) Comprehensive physical damage coverage.
• E) Bodily injury liability coverage.

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Definitions:

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a company's assets over time.

Expense Account

An account in financial accounting that represents costs incurred by a company during a period, not directly tied to the production of goods or services.

Equipment Account

An account where the cost of purchased equipment is recorded, reflecting the total value of equipment owned by a business.