In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis: 1 Net profit less standing charges. 2 Turnover plus closing stock, minus opening stock. 3 Net profit plus standing charges. 4 Turnover plus standing charges.

In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis: 1 Net profit less standing charges. 2 Turnover plus closing stock, minus opening stock. 3 Net profit plus standing charges. 4 Turnover plus standing charges.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 34MC: What type of account is prepaid insurance? A. Stockholders Equity B. Expense C. Liability D. Asset

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Concept explainers

Motor Vehicle Insurance

Motor vehicle insurance is a contract between the insurance company that provides insurance cover and the person who owns the vehicle. According to the terms and conditions of the insurance contract, the insurance company reimburses the policyholder for losses and damages. This insurance policy covers the financial risks of the motor vehicle owner. Electronic vehicles are also covered in a vehicle insurance policy, but the insurance rate is relatively higher than other motor vehicle insurance. Motor vehicle insurance is otherwise called an automotive insurance policy.

Question

In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis:

1 Net profit less standing charges.
2 Turnover plus closing stock, minus opening stock.
3 Net profit plus standing charges.
4 Turnover plus standing charges.

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