If You Have Two Insurance Policies on the Same Property,the

question 84

Multiple Choice

If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.

• A)principle of indemnity.
• B)co-insurance clause.
• C)other-insurance clause.
• D)companies' insurable interest.
• E)principle of subrogation.

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Definitions:

Subsidiary Ledger

A detailed ledger that supports and breaks down the information summarized in a general ledger.

Paid For Equipment

Refers to the cash outflow for the purchase of equipment, considered a capital expenditure in accounting.

Purchased On Account

Transactions where goods or services are bought on credit, with payment to be made at a later date.

Accounts Receivable

Amounts due to a firm from its clients for goods or services delivered but not yet compensated for.