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Flashcards in Investment Property Deck (3)
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1

For life insurance policies of key officers and employees, if the enterprise is the beneficiary, how is the policy recorded?

As an asset of the enterprise at the cash surrender value of the policy

2

When the enterprise is the beneficiary of a life insurance policy of a key officer or employee, how would the proceeds be recorded?

as a gain equal to the excess of the face amount of the policy over the cash surrender value at the time

3

How are funds set aside to meet specific current obligations arising from operations classified?

as current assets. Other special purpose funds are classified as LT investments