Which of the Following Statements About Property and Casualty Insurance

question 22

Multiple Choice

Which of the following statements about property and casualty insurance company operating results is (are) true?
I.An insurance company can have a combined ratio greater than 1 (or 100 percent) and still be required to pay income taxes.
II.By all measures,the property and casualty insurance industry is highly profitable when compared to other industries.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Weighted-Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.

Molding Department

A specific section in a manufacturing facility where molding processes, such as injection or compression molding, are performed to shape materials.

Process Costing

A costing method used in industries where production is continuous, assigning costs to units of output on an average basis.

Job-Order Costing

An accounting method used to track costs individually for each job, not by process or time period.