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

Fundamental Accounting Equation

Financial Accounting

1. Introduction to Accounting

Fundamental Accounting Equation

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Multiple Choice

In an insurance contract, the applicant's consideration is the:

promise to pay claims

issuance of the policy

underwriting of the risk

payment of the premium

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Verified step by step guidance

Understand the concept of 'consideration' in a contract: In financial accounting and legal terms, consideration refers to something of value exchanged between parties in a contract. It is a fundamental element that makes a contract enforceable.

Identify the parties involved in an insurance contract: Typically, the two parties are the insurer (insurance company) and the applicant (policyholder). Each party provides consideration to make the contract valid.

Determine the applicant's consideration: The applicant's consideration is the payment of the premium. This is the monetary value the applicant provides to the insurer in exchange for the promise of coverage and payment of claims in the event of a covered loss.

Clarify the insurer's consideration: The insurer's consideration is the promise to pay claims and provide coverage as outlined in the policy. This is the value the insurer provides in return for the premium paid by the applicant.

Conclude that the payment of the premium is the applicant's consideration in the insurance contract, as it represents the applicant's obligation to fulfill their part of the agreement.