Finance All of the following are examples of liability coverages, except: A Debris removal B Medical payments coverage C First-aid expenses D Compensatory damages
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- Which one of the following is a special type of liability? a. Accrued expenses b. Salaries payable c. Deferred income taxes d. Bond payableLife insurance premiums shall be reported as a deductible expense for financial reporting purposes if the company paying it is the beneficiary. Required: True or FalseWhat are “liability gains and losses,” and how are theyaccounted for?
- The payment of a liability _____.Which of the following is most likely to be regarded as an estimated liability that is subject to provision? a. Deferred revenues b. Current portion of a long-term debt c. Payroll liabilities d. Vacation pay liabilityWhat does the insurer agree to pay for in addition to covering losses in an insurance policy? Services such as investigating claims and defending the insured The entire policy limit Premium costs for the policy period Only losses below the deductible
- Which of the following is usually not an accrued liability? Select one: a. Notes payable b. Taxes payable C. The answer does not exist d. Wages payable e. Interest payable Jump to...One of the purposes that deductible are used in insurance policies is to O eliminate coverage for small claims. O place restrictions or limits on the insurer's promise to perform. provide broader coverage by increasing the number of perils covered. exclude perils that are not insurable.One of examples of contingent liability is an: *a. Obligations related to product warrantiesb. Possible receipt from a litigation settlementc. Pending court case with a probable favorable outcomed. Tax loss carryforwards
- ccess the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:1. Obtain the relevant authoritative literature on recognition of contingent losses. What is the specific citationthat describes the guidelines for determining when an expense and liability should be accrued for a contingentloss?2. List the guidelines.Is recover compensation within? compensation Income option from insurance operations transfer expenses Option of sources of insurance operationsThe accrual of a contingent liability and the related loss should be recorded when the a. Loss resulting from a future event may be material in relation to income. b. Future event that gives rise to the liability is unusual in nature and nonrecurring. c. Amount of the loss resulting from the event is reasonably estimated and the occurrence of the loss is probable. d. Event that gives rise to the liability is unusual and its occurrence is probable.