You would record the fair value.
The deductible is the maximum amount of money you will have to pay out of your pocket for a car accident, therefore the correct answer is $700. <u>This also implies the correct answer is C.</u>
If you take an insurance policy, the amount you pay each month to keep your insurance is called premium. In the case presented, the $200 monthly premium enables you to file a claim in case of any unforeseen circumstance occurs.
<h2>Further Explanation</h2>
Premium is the amount of money you must pay monthly to keep your insurance. If you register for any insurance policy, your insurer will charge a premium, which is the amount you have to pay for the full cost of your insurance.
Listed below is some of the insurance policy that premiums are paid for.
Also, the cost of premium depends on several factors and these include
- Type of coverage
- Your location
- Past insurance claim
- Your age
A deductible is to the amount of money a policyholder must pay in an insurance claim before insurance coverage comes into effect and the insurer starts payment.
Simply put, it is the amount a policyholder must pay out of their pocket before the insurance company will make any payment.
LEARN MORE:
KEYWORDS:
- out-of-pocket
- $700 deductible
- monthly premium
- car
- insurance
- accident
Answer:
a-3 / b-2 / c-4 / d-1
Explanation:
<u>Notes to financial statements</u>: Includes a summary of significant accounting policies and explanations of specific items on the financial statements.
The notes are required by the full disclosure principle. Also referred to as footnotes. Provide additional information pertaining to a company's operations and financial position.
<u>Report of independent registered public accounting firm:</u> Attests to the fairness of the presentation of the financial statements.
is a process designed to provide reasonable assurance regarding the reliability of financial reporting.
<u>Management's discussion and analysis of financial condition and results of operations (MD&A):</u> Is written by the company to help investors understand the results of operations and the financial condition of the company.
Disclosure is mandatory where there is a known trend or uncertainty that is reasonably likely to have a material effect on the registrant's financial condition or results of operations
<u>Financial statements</u>: Includes the income statement, balance sheet, statement of stockholders' equity, and statement of cash flows.
are reports prepared by a company's management to present the financial performance and position at a point in time.
keeping track of bills sent to customers
keep track of after sale services owed to customers
Money is functioning as a medium of exchange. Money makes transactions easier, instead of having to barter for items, you can complete transactions through the usage of money.
Money serves three primary functions unit of account, store of value and most important medium of exchange.