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

Which insurance principle refers to something of value that each party gives to the other in an insurance contract?

Principle of Utmost Good Faith

Principle of Consideration

Principle of Indemnity

Principle of Subrogation

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Verified step by step guidance

Understand the question: The problem is asking about the insurance principle that involves something of value exchanged between the parties in an insurance contract.

Review the key principles of insurance: Familiarize yourself with the definitions of the principles mentioned in the options (Utmost Good Faith, Consideration, Indemnity, and Subrogation).

Focus on the Principle of Consideration: This principle states that both parties in a contract must provide something of value. In insurance, the insured pays a premium, and the insurer provides coverage in return.

Eliminate incorrect options: The Principle of Utmost Good Faith refers to honesty and full disclosure, the Principle of Indemnity ensures compensation for losses, and the Principle of Subrogation allows the insurer to recover costs from third parties. These do not involve the exchange of value in the same way as Consideration.

Conclude that the correct principle is the Principle of Consideration, as it directly relates to the exchange of value between the insured and the insurer.