If the Purpose of an Insurance Policy Is to Protect

question 56

Multiple Choice

If the purpose of an insurance policy is to protect property from loss or damage,the insurance is ______ insurance.

• A) Material
• B) Loss
• C) Economic
• D) Business
• E) Property

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Definitions:

Direct Method

A method for allocating service department costs directly to producing departments without intermediate allocations among service departments.

Operating Activities

Activities that are directly related to the running of a business and the production of its goods and services, affecting the company's cash flow.

Direct Method

In financial accounting, refers to a way of allocating service department costs directly to producing departments without intermediate allocations.

Cash Basis

A bookkeeping practice in which income and outgoings are documented at the point of actual transaction, instead of when they are accrued.