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

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following types of liability losses would typically be covered by a personal umbrella liability policy?

A lawsuit for injuries caused to a neighbor in a slip-and-fall accident at your home

Professional malpractice claims against you as an accountant

Fines and penalties imposed by a regulatory agency

Business liability arising from your sole proprietorship

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Verified step by step guidance

Step 1: Understand the concept of a personal umbrella liability policy. This type of insurance provides additional liability coverage beyond the limits of your standard homeowner's or auto insurance policies. It is designed to protect against significant financial losses due to lawsuits or claims.

Step 2: Analyze the types of liability losses mentioned in the problem. These include: (1) a lawsuit for injuries caused to a neighbor in a slip-and-fall accident at your home, (2) professional malpractice claims against you as an accountant, (3) fines and penalties imposed by a regulatory agency, and (4) business liability arising from your sole proprietorship.

Step 3: Evaluate each type of liability loss to determine if it falls under the scope of a personal umbrella liability policy. Typically, personal umbrella policies cover personal liability claims, such as injuries to others on your property, but they do not cover professional malpractice, regulatory fines, or business-related liabilities.

Step 4: Focus on the first option, 'a lawsuit for injuries caused to a neighbor in a slip-and-fall accident at your home.' This type of liability is personal in nature and is generally covered by a personal umbrella liability policy, as it extends protection for personal incidents beyond the limits of standard homeowner's insurance.

Step 5: Conclude that the other options—professional malpractice claims, regulatory fines, and business liability—are not typically covered by a personal umbrella liability policy, as these involve professional or business-related risks that require specialized insurance policies.