AIAF 114 Assignment 1 - Introduction to Insurance Accounting Exam Questions and Answers|
New Update with 100% Correct Answers
Qualitative accounting information criteria:
- U_______
- R________
- R_________
- C__________ and c__________
- L___ of b___
- C___-b______ e______ Understandability
Relevance
Reliability
Comparability and consistency
Lack of bias
Cost-benefit effectiveness
Being transparent, intelligible and clearly disclosed are required for accounting information to
meet what qualitative criteria Understandability
Being timely and predictable in order to be used for feedback about previously made decisions
is required for accounting information to meet what qualitative criteria Relevance
Having representational faithfulness is required for accounting information to meet what
qualitative criteria Reliability
Being complete, verifiable and neutral is required for accounting information to meet what
qualitative criteria Reliability
Accounting information that cannot be used for year over year analysis within a business, or
between business fails to meet what qualitative criteria Comparability and consistency
, The 5th element of qualitative accounting criteria allows for users to adjust to reflect their own
____ Bias
Accounting information that is difficult or time consuming to obtain fails what qualitative
criteria? Cost-benefit effectiveness
What accounting framework uses an asset's replacement value (or depreciated cost) as
opposed to liquidation value? GAAP
What accounting framework would use realizable values for assets and liability settlements?
Regulatory/Supervisory
US tax accounting rules for insurers are based off of what framework? SAP with
modifications
The price that would be received to sell an asset or paid to transfer a liability between market
participants Fair value
The extent of the permanent impairment of an asset would be reflected where? in the
income statement
Change in accounting _______ may require special disclosure of the change, with recalculation
of prior period results principle
Change in accounting ______ affects only the latest reporting period and generally does not
require recalculation estimate
TRUE/FALSE: Claim expenses arise solely from covered claims FALSE because of the cost to
dispute
New Update with 100% Correct Answers
Qualitative accounting information criteria:
- U_______
- R________
- R_________
- C__________ and c__________
- L___ of b___
- C___-b______ e______ Understandability
Relevance
Reliability
Comparability and consistency
Lack of bias
Cost-benefit effectiveness
Being transparent, intelligible and clearly disclosed are required for accounting information to
meet what qualitative criteria Understandability
Being timely and predictable in order to be used for feedback about previously made decisions
is required for accounting information to meet what qualitative criteria Relevance
Having representational faithfulness is required for accounting information to meet what
qualitative criteria Reliability
Being complete, verifiable and neutral is required for accounting information to meet what
qualitative criteria Reliability
Accounting information that cannot be used for year over year analysis within a business, or
between business fails to meet what qualitative criteria Comparability and consistency
, The 5th element of qualitative accounting criteria allows for users to adjust to reflect their own
____ Bias
Accounting information that is difficult or time consuming to obtain fails what qualitative
criteria? Cost-benefit effectiveness
What accounting framework uses an asset's replacement value (or depreciated cost) as
opposed to liquidation value? GAAP
What accounting framework would use realizable values for assets and liability settlements?
Regulatory/Supervisory
US tax accounting rules for insurers are based off of what framework? SAP with
modifications
The price that would be received to sell an asset or paid to transfer a liability between market
participants Fair value
The extent of the permanent impairment of an asset would be reflected where? in the
income statement
Change in accounting _______ may require special disclosure of the change, with recalculation
of prior period results principle
Change in accounting ______ affects only the latest reporting period and generally does not
require recalculation estimate
TRUE/FALSE: Claim expenses arise solely from covered claims FALSE because of the cost to
dispute
