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

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

The requirement that agents not commingle insurance monies with their own funds is known as:

The segregation of duties principle

The trust fund doctrine

The fiduciary duty

The matching principle

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Verified step by step guidance

Understand the context of the problem: The question is asking about a principle related to the handling of insurance monies by agents. This is a concept tied to ethical and legal responsibilities in financial accounting and insurance practices.

Clarify the term 'commingle': Commingling refers to mixing funds that should be kept separate, such as combining client funds with personal funds. This is generally prohibited to ensure transparency and accountability.

Review the options provided: Each option represents a different principle or doctrine. Analyze each one to determine which aligns with the requirement to keep insurance monies separate.

Option analysis: The 'segregation of duties principle' refers to dividing responsibilities to prevent fraud or errors, but it does not specifically address fund separation. The 'fiduciary duty' refers to an agent's obligation to act in the best interest of their client, which is broader than fund separation. The 'matching principle' is an accounting concept related to revenue and expense recognition, not fund handling. The 'trust fund doctrine' specifically requires agents to keep client funds separate from their own, making it the correct answer.

Conclude: Based on the analysis, the principle that requires agents not to commingle insurance monies with their own funds is the 'trust fund doctrine'.