Which type of accounting is primarily concerned with protecting business assets against risks such as fire, theft, and other hazards?

• A. Forensic Accounting
• B. Management Accounting
• C. Cost Accounting
• D. Insurance Accounting

Answer: (D)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about a type of accounting that focuses on protecting business assets against risks such as fire, theft, and other hazards.
2. Review the definitions of the accounting types mentioned: Forensic Accounting deals with investigating fraud and financial discrepancies, Management Accounting focuses on internal decision-making, and Cost Accounting analyzes costs for budgeting and efficiency.
3. Recognize that none of the listed accounting types directly address risk protection against hazards. Instead, Insurance Accounting is the correct answer because it deals with managing and recording transactions related to insurance policies and claims, which are designed to mitigate such risks.
4. Clarify that Insurance Accounting involves tracking premiums, claims, and reserves to ensure businesses are financially protected against unforeseen events.
5. Conclude that the correct answer is Insurance Accounting, as it aligns with the goal of safeguarding business assets against risks like fire, theft, and other hazards.