Answer:
The <em>covenant of good faith and fair dealing</em> simply requires all the parties to a contract to deal in an even-handed manner such that one party's action does not frustrate the other or prevent the other from getting the benefits of that contract.
In insurance, this covenant is sometimes captured under the heading <em>Uberrima fides</em>. This is a Latin phrase meaning <em>"Utmost Good Faith".</em>
In insurance, this covenant is legally binding on all parties to ensure they each reveal every information that is material to the acceptance or rejection of the risk (on the part of the Insurer) whilst on the part of the Insured the insurer is required to be explicit regarding the terms of the policy as well as the calculations by which the premium is arrived at.
For example, if an Insurance company is looking at covering someone under it's Life Insurance Policy, the person taking out the contract must disclose whether or not the Insured has any latent health issues which might shorten their lifespan. If there is such a condition, the Insurance company may still take on the risk albeit at a relatively higher rate than a client without such medical conditions.
An Insurance Company may breach this covenant if they delay or refuse to reasonable settle claims due to the Insured. It may also arise if the Insurance company by some technical manipulation intentionally under settles an Insurance claim.
If for instance, a Comprehensive Insurance Policy files a valid claim, the Insurer may be liable for negligence and or intentional wrongdoing.
Cheers!
They can simply ask their boss for a raise or just wait it out and soon enough you’ll get a raise.
Answer:
The correct answer is letter "A": Accrual-basis revenues exceed cash collections from customers.
Explanation:
Revenue collected in advance are profits collected usually at the beginning of a contractual agreement that implies obligations from the firm for a certain time. For instance, insurance companies charging a one-time payment for an annual policy fall into this category.
The accrual basis of accounting states that profits are reported on the income statement as they are earned. In that case, if the revenue collected in advance decreases, the accrual-basis revenues will be higher than the cash collections from customers under the advanced payment method.
Answer:
C
Explanation:
A rational consumer would keep consuming as long as he continues to derive satisfaction from consuming one more unit of a product..
For example, if you have eaten two hamburgers and you are contemplating whether to consume one more unit of hamburger or not. one of the factors you would consider is if you would derive a marginal benefit from one more consumption. If you would, you would consume one more hamburger and if you would not, you won't consume the hamburger
Answer:
c) $5,000
Explanation:
Kansas Plating Company
Cost of Goods Manufactured.
DM used $40,000
Add Direct labor $70,000
Add Overhead $180,000
Total Manufacturing Costs 290,000
Work in Process Inventory
Add Begin. Inv. 5000
Avail. for mfg. 295,000
Less End. Inv. 3,500
0
Cost of goods mfg 260,000
As the beginning balances of materials direct labor and FOH are given we add these to get total manufacturing costs and also the ending balances are given of Cost of Goods Manufactured and ending Inventory we calculate backwards to get to the Work In Process opening Inventory.
