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

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

If an insurer issued a policy based on the application, which of the following best describes the information provided by the applicant?

It is only used for marketing purposes and not for underwriting.

It is not legally binding and can be disregarded by the insurer.

It is considered a warranty and must be absolutely true.

It is considered a representation and must be substantially true.

Previous problemNext problem

Verified step by step guidance

Understand the concept of 'representation' in insurance: In financial accounting and insurance, a representation refers to statements made by the applicant during the application process. These statements are not required to be absolutely true but must be substantially true to the best of the applicant's knowledge.

Differentiate between 'representation' and 'warranty': A warranty is a statement that must be absolutely true and is legally binding. In contrast, a representation is not legally binding and does not require absolute truth, only substantial truth.

Analyze the options provided: Evaluate each option based on the definition of representation. For example, the option stating 'It is considered a warranty and must be absolutely true' is incorrect because representations do not require absolute truth.

Focus on the correct answer: The correct answer is 'It is considered a representation and must be substantially true.' This aligns with the definition of representation in insurance and financial accounting.

Conclude the reasoning: The applicant's information is used for underwriting purposes, and while it is not legally binding like a warranty, it must be substantially true to ensure the insurer can assess the risk accurately.