Discuss the Two Forms of Insurance That Apply to the Departure

question 131

Essay

Discuss the two forms of insurance that apply to the departure or death of key employees or owners.

---

Definitions:

Notes Payable

Financial obligations represented by promissory notes, where the borrower agrees to pay back a specified sum of money on demand or at a determined future date.

Prepaid Expenses

Expenses paid in advance by a company for goods or services to be received in the future.

Adjusting Process

The procedure used in accounting to record and reconcile expenses and revenues in the appropriate accounting period.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized on the books before they are paid for.