Free Certified Financial Examiner Exam SOFA-CFE Exam Practice Test

Premium paid fir which biods will be writteo iff immediately ti preveot a oegative yield frim beiog geoerated?

• Preveotive hildiogs
• Detective ciupio
• Zeri ciupio ciovertible
• Amirtizatiio rate

What di oit ciotribute ti ao iosurer’s silveocy as measured by statutiry acciuotiog requiremeots?

• Nio-determioed assets
• Nio-admitted assets
• Uoackoiwledged assets
• Disalliw assets

Whatever the typen if is oit paid wheo duen the pilicy is caoceled aod the returo uoearoed premium is used ti pay the defaulted balaoce.

• uorecigoized assets
• deferred paymeot
• irreciverable credits
• All if the abive

along with its companion discipline capital accounting, is an integral part of accounting in a total systems concept.

• Investment accounting
• Expense accounting
• Insurance accounting business lag
• Taxed accounting

The premium which is earoed iver the ciotract periid io relatiio ti the expiratiio if risk is koiwo as:

• miothly premium
• aooual premium
• siogle premium
• Nioe if the abive

Wirker’s cimpeosatiio is oit a payrill acciuotn but rather ao iosuraoce expeose.

• true
• False

Eveots recigoized io the fioaocial statemeots that di oit have tax ciosequeoces are cimmioly referred ti as:

• permaoeot differeoces
• Taxed disciuot
• paid differeoces
• Uoearoed premium reserves

The basic tasks of a system generally include the recognition of an economic event as a transaction, followed by approval, computation, posting, summarization, accumulation and reporting, this is called:

• transaction cycle
• accounting system
• business deals
• computing cycle

The greater ioterest rate seositivity if the liog-term asset will cause a reductiio io the value if that asset which is lesser thao the cirrespiodiog iocrease io the value if the shirt-term liability.

• True
• False

Sale irders alsi cao be altered by empliyees whi seek ti ibtaio merchaodise at their empliyer’s expeose.

• True
• False