The Amount of an Asset for Which a Company Will

question 36

Multiple Choice

The amount of an asset for which a company will write an insurance policy is called

• A)personal protection plan.
• B)insurable value.
• C)deductible.
• D)co-insurance.

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Definitions:

Cash Flows

The movement of money into and out of a business, indicating the company's ability to generate cash from operations, investments, and financing activities.

Operating Activities

Day-to-day actions that a company takes in conducting its business, such as selling products, managing costs, and paying wages.

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, also known as net earnings.

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to calculate net cash from operating activities.