Multiple Choice
Which type of accounting is primarily concerned with taking receipt of premiums and holding funds for policyholders?
54
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A _____ is a share of ownership in a company.
A
stock
B
bond
C
liability
D
dividend
Verified step by step guidance1
Understand the concept of ownership in a company: Ownership in a company is represented by shares, which are units of equity ownership.
Learn the definition of a stock: A stock represents a share of ownership in a company, giving the holder a claim to a portion of the company's assets and earnings.
Differentiate between the options: A bond is a debt instrument, not ownership. A liability is an obligation, and a dividend is a distribution of profits, neither of which represent ownership.
Identify the correct term: Based on the definitions, the term that represents ownership in a company is 'stock'.
Confirm the answer: The correct answer to the question is 'stock', as it aligns with the concept of ownership in a company.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations