Which of the Following Events Is a "Casualty" Loss

question 103

Multiple Choice

Which of the following events is a "casualty" loss?
I.Diamonds stolen by thief, reported to police
II.Florida orange trees killed by a freeze.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Foreclosure by Action and Sale

A legal process where a creditor seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Surplus

The amount by which revenue exceeds expenses in financial accounting, or in terms of inventory, more than what is needed.

Mortgage Debt

A loan secured by property, typically real estate, where the borrower is obliged to make a predetermined series of payments.

Deed of Trust

A legal document where real property is held in trust by a third party as security for a loan until the debt is paid off.