Coverage a of the Institute Marine Cargo Clauses Requires a Special

question 27

Multiple Choice

Coverage A of the Institute Marine Cargo Clauses requires a special endorsement to cover

• A) an unseaworthy vessel.
• B) improper packing.
• C) strikes and other civil disturbances.
• D) All of the above
• E) None of the above

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Definitions:

Bad Debts

Accounts receivable that a company determines it will not be able to collect.

Unadjusted Trial Balance

A financial report showing all accounts and their balances before adjustments, serving as a check on the correctness of the sums of debit and credit balances.

Aging of Accounts Receivable

A document or method that organizes a business's accounts receivable based on the duration an invoice has remained unpaid.

Bad Debts Expense

An expense reported on the income statement, representing the non-collectable accounts receivable from extending credit to customers.