Ga state license practice exam (7)

N3

not use ai please

S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.A. Both statements are correctB. Only S1 is correctC. Both statements are incorrectD. Only S1 is incorrect

S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related expenses.   a. Only S3 is incorrectb. All statements are correctc. Only S2 is correctd. Only S3 is correcte. Only S1 is incorrectf. Only S2 is incorrectg. All statements are incorrecth. Only S1 is correct

S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premium deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. Only S3 is correct O All statements are correct Only S1 is correct Only S1 is incorrect Only S2 is correct Only S3 is incorrect All statements are incorrect Only S2 is incorrect

Contract terms: Multiple Choice confer the rights and obligations of the borrower. depend on data in financial statements that are issued before the contract is executed. cannot be designed to eliminate or reduce conflicting incentives. do not use financial accounting numbers to monitor compliance with contract terms.

Suppose Mylan could write an insurance contract whereby it is insured against all penalties resulting from misclassification. Would this affect their need to disclose? Group of answer choices No, because if they are fully covered, investors would find the loss contingency misleading since there is no receivable for the insurance Yes, because they would offset the loss contingency with a receivable which would net to zero No, because purchasing insurance does not relieve the purchaser of its obligation to make payments related to losses that result from risk. Yes, because it is impossible to insure loss contingencies

Which of the following statements is NOT true regarding gift card revenue recognition? O When a gift card is sold, the seller establishes a liability on its balance sheet. O Breakage can only be recognized as revenue to the extent that it is probable a reversal will not be necessary. O Breakage refers to the unused portion of gift cárd balances. O The amount received from the sale of gift cards is required to be recognized as revenue when the gift cards are sold.

The restriction that manufacturers should not market a new product that is legally similar to that of another company's product is due to which public policy instrument?  a. Copywrite  b. Minimum standards for product warranties  c. Anti- merger laws  d. Patent laws

Which of the following is NOT an example of a contingency? Salaries payable to top management Potential expense related to repair or replace products sold under warranty Note receivable sold with recourse An amount potentially payable to settle a lawsuit All the other alternatives are contingencies

2. Which of the following is an example of conversion, the misappropriation of fiduciary monies? a . premium diversion b. False statements in official filings C. issuing a fake insurance policy d. misrepresentation on an insurance application

Please answer with reason for all why the option is correct and why the other options are incorrectPlease answer correct otherwise skip it     The most recent example of the political process at work in standard-setting is the controversy surrounding the: A. Creation of the FASB. B. Accounting for employee stock options. C. FASB Accounting Standards Codification. D. Implementation of the fair value standard.

None

The new revenue recognition standard does not apply to Leases. Insurance contracts. Financial instruments. All of these choices.

Collision and comprehensive: Multiple Choice O O O O O Only pay the insurer Only pay the insured Are compulsory insurance Have no deductibles None of the answer choices are correct.

True or False  According to PFRS 15, if an entity expects that a portion of giftcertificates sold will not be redeemed, the entity recognizes theexpected breakage amount as revenue in proportion to the pattern of rights exercised by customer