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

In insurance accounting, when must insurable interest exist for a valid insurance contract?

Only at the end of the policy term

At the time the insurance policy is taken out

At both the inception of the policy and at the time of loss

At the time of loss or claim

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Verified step by step guidance

Understand the concept of insurable interest: Insurable interest refers to the financial or other interest a person has in the subject matter of the insurance policy, which would cause them to suffer a loss if the insured event occurs.

Review the principle of insurable interest in insurance accounting: For an insurance contract to be valid, the insured must demonstrate insurable interest in the subject matter of the policy. This ensures that the policyholder has a legitimate reason to seek coverage.

Analyze the timing of insurable interest: Insurable interest must exist at specific points in time to validate the insurance contract. This is typically required at the time of loss or claim, as the insured must prove they have a financial stake in the subject matter at the time of the event.

Compare the options provided: Evaluate each option against the principle of insurable interest. For example, insurable interest is not required only at the end of the policy term or solely at the inception of the policy. It must exist at the time of loss or claim to ensure the policyholder has a legitimate claim.

Conclude the correct timing: Based on the principle of insurable interest, the correct answer is that insurable interest must exist at the time of loss or claim. This ensures the policyholder has a valid reason to receive compensation for the insured event.