A Policy of Fidelity Insurance Is an Example of Which

question 18

Multiple Choice

A policy of fidelity insurance is an example of which of the following types of insurance?

• A)Profit loss
• B)Business loss
• C)Economy
• D)Commercial
• E)Economic

---

Definitions:

GAAP

A set of widely adhered to accounting norms and guidelines for the preparation of financial statements.

Annual Depreciation Expense

The portion of the cost of a fixed asset that is expensed each year over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Double Declining-Balance Depreciation

An accelerated depreciation method that double the rate of straight-line depreciation, decreasing the value of assets more quickly.

Accumulated Depreciation Balance

The total amount of depreciation that has been recorded against a fixed asset up to a specific point in time, reflecting the decline in the asset's value.