Question
In a soft insurance markWhile trend analysis can be used on various financial
statements, it is most commonly applied to Available answer options Select only
one option A Changes in equity statements. B Income statements. C Cash flow
statements. D Balance sheets.et, PUQ Insurance Company decided to sell its
workers compensation insurance book of business to ACB Insurance Company.
ACB decided to reunderwrite the book of business assumed from PUQ. ACB
learned through the reunderwriting process that the loss ratio for this book of
business was deteriorating and the retention ratio was 40 percent. Based on this
information, what should ACB conclude about the acquired book of business?
Answer & Explanation
To address the question regarding trend analysis, let's first identify the most
common financial statement it is applied to:
Answer: B Income statements.
Explanation:
In a soft insurance markWhile trend analysis can be used on various financial
statements, it is most commonly applied to Available answer options Select only
one option A Changes in equity statements. B Income statements. C Cash flow
statements. D Balance sheets.et, PUQ Insurance Company decided to sell its
workers compensation insurance book of business to ACB Insurance Company.
ACB decided to reunderwrite the book of business assumed from PUQ. ACB
learned through the reunderwriting process that the loss ratio for this book of
business was deteriorating and the retention ratio was 40 percent. Based on this
information, what should ACB conclude about the acquired book of business?
Answer & Explanation
To address the question regarding trend analysis, let's first identify the most
common financial statement it is applied to:
Answer: B Income statements.
Explanation:
