A Provision in an Insurance Policy in Which an Initial

question 36

Multiple Choice

A provision in an insurance policy in which an initial amount of loss is not covered by the policy and must be paid by the insured is known as a:

• A)security deposit.
• B)market imperfection.
• C)policy limit.
• D)deductible.
• E)loss premium.

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Definitions:

Outstanding Voting

Refers to the shares of a corporation that have voting rights and are currently held by shareholders, not the company itself.

Initial Value Method

An accounting approach where investments are recorded at their original cost without subsequent adjustment for changes in value.

Intra-entity Gross Profit

The profit recognized on transactions within different parts of the same company.

Consolidation Worksheet

A financial tool used to merge and organize the financial information of parent and subsidiary companies for reporting purposes.