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

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Multiple Choice

To purchase insurance, the policyowner must face the possibility of:

avoiding all types of risk

receiving dividends from the insurance company

a financial loss resulting from an uncertain event

guaranteed profits from the insurance policy

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Verified step by step guidance

Step 1: Begin by understanding the concept of insurance. Insurance is a financial product designed to protect against the risk of financial loss due to uncertain events, such as accidents, illnesses, or natural disasters.

Step 2: Recognize that the policyowner is the individual or entity that purchases the insurance policy. The policyowner faces the possibility of financial loss resulting from an uncertain event, which is the primary reason for purchasing insurance.

Step 3: Clarify the incorrect options: Avoiding all types of risk is not possible, as insurance only mitigates financial risk, not eliminates all risks. Receiving dividends from the insurance company is not guaranteed and depends on the type of policy (e.g., participating policies may pay dividends). Guaranteed profits from the insurance policy are not a feature of insurance, as it is designed for risk protection, not profit generation.

Step 4: Focus on the correct answer: Insurance is purchased to address the possibility of a financial loss resulting from an uncertain event. This aligns with the fundamental purpose of insurance.

Step 5: Summarize the reasoning: The correct answer is 'a financial loss resulting from an uncertain event,' as this reflects the core purpose of insurance and the risk the policyowner faces.