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 the context of a 50/100/25 split limit insurance policy, the '50' refers to the maximum amount the policy will pay in:

Medical payments per person

Bodily injury liability per accident

Property damage liability per accident

Bodily injury liability per person

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Verified step by step guidance

Understand the concept of split limit insurance policies: Split limit insurance policies specify three separate limits for coverage, typically expressed as 'A/B/C'. These limits represent the maximum amounts the insurer will pay for different types of claims.

Break down the components of the split limit: In a 50/100/25 policy, '50' refers to the maximum amount the insurer will pay for bodily injury liability per person, '100' refers to the maximum amount for bodily injury liability per accident (regardless of the number of people injured), and '25' refers to the maximum amount for property damage liability per accident.

Focus on the '50' component: The '50' specifically refers to the maximum amount the policy will pay for bodily injury liability per person. This means that if one person is injured in an accident, the insurer will cover up to $50,000 for their medical expenses and related costs.

Clarify the distinction between bodily injury liability per person and per accident: Bodily injury liability per person ('50') is the limit for each individual injured, while bodily injury liability per accident ('100') is the total limit for all individuals injured in a single accident.

Conclude the explanation: Based on the breakdown, the '50' in the 50/100/25 split limit insurance policy refers to bodily injury liability per person, as it sets the maximum coverage for medical expenses and related costs for one individual injured in an accident.