Solved

On Both Old and New Business, Companies Can Also Avoid

Question 127

Multiple Choice

On both old and new business, companies can also avoid premium notes by entering into agreements involving deposits of a portion of the premium with an extension on the balance. These deposits are treated as:


A) A liability
B) Unearned revenue and not credited to income until the deposit is used to pay the premium
C) A liability and not credited to income until the deposit is used to pay the premium
D) Asset and not credited to income until the deposit is used to pay the premium

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents