The Two Components of Lost Earnings in a Civil Litigation

question 13

Multiple Choice

The two components of lost earnings in a civil litigation claiming damages are

• A) expected lost earnings and unexpected lost earnings.
• B) past lost earnings and recoverable lost earnings.
• C) past lost earnings and future lost earnings.
• D) past lost earnings and unexpected lost earnings.

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Definitions:

Prepaid Insurance

Insurance costs paid for in advance, recorded as a current asset until the period the insurance coverage relates to passes.

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies.

Liability Insurance Policy

A financial product that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, recorded as assets on the balance sheet until they are actually consumed.