S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17.53: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. O Only S1 is correct O Only S2 is correct O Only S3 is correct O Only S1 is incorrect O Only S2 is incorrect O All statements are incorrect O Only S3 is incorrect O All statements are correct
S1: In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy. S2: ABC a manufacturer of appliances, approved to insure a customer for any loss or damage that the customer may incur from the use of a purchased appliance which is covered under PFRS 17.53: Under insurance contract, the party that has a right to compensation if the insured event occurs is referred to as the insurer. O Only S1 is correct O Only S2 is correct O Only S3 is correct O Only S1 is incorrect O Only S2 is incorrect O All statements are incorrect O Only S3 is incorrect O All statements are correct
Chapter1: Financial Statements And Business Decisions
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