True or false:Jasjot Ltd. purchases a 6-month insurance policy which covers damage to their inventory in the event of a fire.This insurance is included in the cost of inventory.Group of answer choicesTrueFalse

Jasjot Ltd. sells children's toys on a wholesale basis. The business pays a courier $450 to ship inventory to its warehouse, which once it arrives, is covered by business insurance (costing $100) against fires and floods.Which journal entry records the transportation cost?Group of answer choicesDR Inventory $450; CR Cash $450DR Inventory $550; CR Cash $550DR Transportation expense $550; CR Cash $550DR Transportation expense $450; CR Cash $450

M Traders have taken out a fire policy of ` 80,000 covering its stock in trade. A fareoccurs on 31st March, 2015 and stock was destroyed with the exception of ` 20,680 worth. Followingparticulars are available from the books of accounts of the firm:Particulars `````Stock on 1st January, 2015 30,000Purchase to the date of fire 1,30,000Sale to the date of fire 90,000Commission paid to the purchase manager on purchase 2%Carriage paid on purchases 800Average gross profit on cost 50%The policy was subject to average clause.You are required to calculate the:(i) Total loss of stock, and (ii) Amount of claim made against the Insurance Co

Insurance paid ahead of time is a type of deferred Revenue. True False

Suppose now June can purchase insurance for the transport of her householde§ects at a price of q 2 (0; 1) per dollar of coverage. That is, if she chooses apolicy that covers a maximum of C in the event of a loss, she pays qC to theinsurance company and they agree to pay her in the event of a loss, the valueof her loss up to the agreed maximum cover of C. So, in particular, if she3takes out a policy with the maximum coverage of L, then she will be fullyinsured in the event of the truck crashing since her state-contingent wealthwill be M qL in the event the truck does not crash and M qL L + L =M qL in the event the truck crashes.(d) (5 points) Illustrate on your diagram from part (a) her state-contingentwealth bundles corresponding to the set of choices going from zero cov-erage (that is, C = 0) to full coverage (that is, C = L). [Hint: eachadditional dollar of coverage reduces Juneís wealth by q dollars in theevent the truck does not crash and increases it by q + 1 in the eventthe truck crashes.]

Which type of insurance typically covers risks related to sea voyages?Health InsuranceFire InsuranceMarine InsuranceTerm Life Insurance