Dag Obtains from Excel Insurance Company a Policy That Provides

question 10

Multiple Choice

Dag obtains from Excel Insurance Company a policy that provides that Dag has thirty days after a premium's due date to pay it before the policy will be canceled. This is

• A) an antilapse clause.
• B) an arbitration clause.
• C) an appraisal clause.
• D) an incontestability clause.

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Definitions:

Impairment Loss

A reduction in the book value of an asset when its fair market value falls below its carrying amount on the balance sheet, indicating a permanent decline in value.

Accumulated Depreciation

Represents the total depreciation expenses charged against a fixed asset since it was put into use, reflecting its decrease in value over time.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value.

Gain of $2,000

Represents an increase in wealth or resources, typically accounted for in financial statements when an asset is sold for more than its cost.