Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is not usually considered an insurable loss for a business liability?

Losses from changes in market demand

Losses from fire damage to inventory

Losses due to employee theft

Losses from natural disasters

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Verified step by step guidance

Step 1: Understand the concept of insurable losses. Insurable losses are those that can be covered by insurance policies, typically involving unforeseen and accidental events that result in financial loss.

Step 2: Review the options provided in the question. Analyze each type of loss to determine whether it is typically insurable under standard business liability insurance policies.

Step 3: Evaluate 'Losses from changes in market demand.' These losses are related to economic factors and business performance, which are not accidental or unforeseen events. Therefore, they are generally not insurable.

Step 4: Evaluate 'Losses from fire damage to inventory.' Fire damage is an accidental and unforeseen event, and it is typically covered by business insurance policies.

Step 5: Evaluate 'Losses due to employee theft' and 'Losses from natural disasters.' Both are accidental and unforeseen events that are usually covered by specific types of business insurance policies, such as crime insurance and property insurance.