LOMA 361 - CHAPTER 1 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
accounting - Answers A system or set of rules and methods for collecting, processing, reporting,
and monitoring financial information about a company.
American Institute of Certified Public Accountants (AICPA) - Answers A professional association
of Certified Public Accountants (CPAs) in the United States.
Annual Report - Answers In the United States, a document that a company's management sends
to interested parties to explain the company's financial performance during the past year.
Annual Statement - Answers A financial report that every insurer in the United States must file
annually with the National Association of Insurance Commissioners (NAIC) and the insurance
regulatory organization in each state in which the insurer conducts business.
association examination - Answers In the United States, a financial condition examination of an
insurer conducted by examiners representing various states in the geographic zones in which
the insurer is licensed.
business transaction - Answers A transaction to which a company must assign an objective
monetary value, whether the impact on the company is large or small, actual or expected.
capital - Answers The amount of money invested in a company by its owners, usually through
the purchase of the company's stock.
Certified Public Accountant (CPA) - Answers In the United States, the professional accounting
credential that accountants who work in public accounting generally earn.
controller - Answers The head of a company's accounting function.
examination report - Answers A document that summarizes the results of an insurance
company's financial condition examination and that is submitted to both state regulators and
the company's officers.
financial accounting - Answers The field of accounting that focuses primarily on reporting a
company's financial information to meet the needs of the company's external users.
Financial Accounting Standards Board (FASB) - Answers In the United States, a private
organization to which the Securities and Exchange Commission (SEC) has delegated the
responsibility for establishing generally accepted accounting principles (GAAP).
financial condition examination - Answers In the United States, an onsite regulatory examination
of an insurer that is carried out by one or more state insurance departments and is designed to
identify and monitor any threats to the insurer's solvency.
accounting - Answers A system or set of rules and methods for collecting, processing, reporting,
and monitoring financial information about a company.
American Institute of Certified Public Accountants (AICPA) - Answers A professional association
of Certified Public Accountants (CPAs) in the United States.
Annual Report - Answers In the United States, a document that a company's management sends
to interested parties to explain the company's financial performance during the past year.
Annual Statement - Answers A financial report that every insurer in the United States must file
annually with the National Association of Insurance Commissioners (NAIC) and the insurance
regulatory organization in each state in which the insurer conducts business.
association examination - Answers In the United States, a financial condition examination of an
insurer conducted by examiners representing various states in the geographic zones in which
the insurer is licensed.
business transaction - Answers A transaction to which a company must assign an objective
monetary value, whether the impact on the company is large or small, actual or expected.
capital - Answers The amount of money invested in a company by its owners, usually through
the purchase of the company's stock.
Certified Public Accountant (CPA) - Answers In the United States, the professional accounting
credential that accountants who work in public accounting generally earn.
controller - Answers The head of a company's accounting function.
examination report - Answers A document that summarizes the results of an insurance
company's financial condition examination and that is submitted to both state regulators and
the company's officers.
financial accounting - Answers The field of accounting that focuses primarily on reporting a
company's financial information to meet the needs of the company's external users.
Financial Accounting Standards Board (FASB) - Answers In the United States, a private
organization to which the Securities and Exchange Commission (SEC) has delegated the
responsibility for establishing generally accepted accounting principles (GAAP).
financial condition examination - Answers In the United States, an onsite regulatory examination
of an insurer that is carried out by one or more state insurance departments and is designed to
identify and monitor any threats to the insurer's solvency.
