3-62 the Largest Liability Category on the Balance Sheet of U.S.life

question 42

Multiple Choice

3-62 The largest liability category on the balance sheet of U.S.life insurance companies as of year-end 2009 was

• A)net policy reserves.
• B)policy claims.
• C)premium and deposit funds.
• D)commission,taxes and expenses.
• E)capital surplus.

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling off its assets to pay off its debts, ultimately leading to the company's dissolution.

Installment Program

A payment plan allowing customers to purchase goods by making a series of payments over time until the total debt is paid.

Liquidation Transactions

Sales or disposals of assets by a company, typically occurring when the company is ceasing operations, to pay off creditors and distribute any remaining assets to shareholders.

Profit and Loss Ratio

A financial metric that compares the profits and losses of a business in a specific time period, often used to gauge operational performance.