Problem 3.6[4 Points] Financial AccountingThe Contractual Service Margin in insurancecontracts is:a) Recognized immediately as profitb) Released over the coverage periodc) Added to insurance liabilityd) Expensed as incurred

Explanation of Contractual Service Margin:The Contractual Service Margin is a key component of…

Answered: Problem 3.6[4 Points] Financial…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 41RSCQ

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QUESTION 13 The primary function of an actuary is to O adjust claims. determine premium rates. negotiate reinsurance treaties O invest insurance company assets Click Save and Submit to save and submit. Click Same All Answers to save all answers.
The consideration paid by insured in a contract of insurance. A. premium C. prepaid insurance B. insurance expense D. either B or C
QUESTION 27 The price per unit of insurance is called the O premium. O loss adjustment expense. rate. loss reserve.
13) The balance found in the revenue account of general insurance companies is treated as:
C. renewal notice O D. completing notes 19. is the document that acknowledge the insured legally entitled to receive the payment from the policy. * O A. Discharge notes B. Completion notes O C. Claim form O D. Policy form 20. The written insurance document that may include all clauses, exception and
C. Claim form D. Policy form 20. The written insurance document that may include all clauses, exception and conditions is called O A. endorsement O B. claim form O C. certificate of insurance O D. policy form 21. What is the form that filled out by insured if a loss is suffered? *
_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract
Accounting Given the following 1. Gross Premium 2. Commission 3. Claims 4. Outstanding Claims and 5. Incurred but not reported reserve. How do you calculate the Unearned premium for different contracts under IFRS 4. What is the formular.
Sub: Accounting
1. The significant risk that is transferred from the policyholder to the issuer of an insurance contract is:a. Lapse or persistency riskb. Financial riskc. Expense riskd. Insurance risk2. Under the general model of PFRS 17, a group of insurance contracts is initially measured at:a. The fulfillment cash flowsb. The contractual service marginc. Either a or bd. Both a and b3. A group of insurance contracts is subsequently measured at:a. The liability for remaining coverageb. The liability for incurred claimsc. Either a or bd. Both a and b4. According to PFRS 17, an insurance contract is NOT derecognized when:a. Expiredb. Terms have been modified, and the modification is not substantivec. Terms have been modified, and the modification is substantived. Extinguished5. According to PFRS 17, an accounting service result is recognized in:a. Profit or lossb. Other comprehensive incomec. Statement of financial positiond. Partly in profit or loss, and partly in other comprehensive incomeUse the…
The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium d. Insured
Question 7 Common examples of short-term or current liabilities include the following EXCEPT: O A. wages and salaries payable. O B. warranty liabilities and unearned revenues. O C. bonds payable. O D. accounts payable.

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Problem 3.6[4 Points] Financial Accounting The Contractual Service Margin in insurance contracts is: a) Recognized immediately as profit b) Released over the coverage period c) Added to insurance liability d) Expensed as incurred