Outstanding claims should be recognised as liabilities,as should any insurance premiums received in advance but not yet earned.

Name: Outstanding claims should be recognised as liabilities,as should any insurance premiums received in advance but not yet earned.
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Question

Quizplus · Accepted Answer

Outstanding claims and unearned insurance premiums represent obligations that need to be fulfilled in the future, and therefore meet the definition of a liability. As such, they should be recognized as such in the financial statements.

Outstanding Claims Should Be Recognised as Liabilities,as Should Any Insurance