Frank Tried to Enter the Central Expressway and Caused a Wreck.He

question 56

Multiple Choice

Frank tried to enter the Central Expressway and caused a wreck.He had automobile insurance with limits of 30/50/15.What is the maximum this insurance policy would pay for the total of bodily injury liability claims in the accident?
$30,000

• A)$15,000
• B)$30,000
• C)$50,000
• D)$65,000

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Definitions:

Credit Side

The right side of an accounting ledger where increases in liabilities, equity, and revenue accounts are recorded.

Debit Side

The left side of a ledger account that records increases in assets and expenses or decreases in liabilities and equity.

Journalizing

A process in accounting that involves recording transactions in a journal before they are transferred to a ledger.

Posting Process

The act of transferring entries from a company's journal to the appropriate accounts in the general ledger.