To Realize the Effect on the "Bottom Line," or the Net

question 48

Multiple Choice

To realize the effect on the "bottom line," or the net gain from operations, from various transactions, one must consider the amount of any liabilities that are released because of the transaction. Assume a death claim entry as follows: Death proceeds-ordinary $10,000 Dividends on deposit disbursed 1,000 Cash $11,000 On first appearance, one might think that this will cause the net gain from operations to be $11,000 lower. However, if the policy has a reserve of $3,000, the effect on the net gain is only , because the reserve liability of $3,000 and the dividend liability of $1,000 will no longer be shown on the balance sheet

• A) $7,000
• B) $10,000
• C) $8,000
• D) $9,000

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Definitions:

Perception

The process by which sensory information is organized and interpreted by the brain to make sense of its environment.

Dopamine

A neurotransmitter in the brain involved in regulating mood, motivation, pleasure, and reward.

Schizophrenia

A severe mental disorder characterized by distorted thoughts, perceptions, and emotions, often manifesting as hallucinations, delusions, and disorganized speech.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another in the brain or body.