LOMA 291 Module 4 Exam Questions
and Answers 100% Pass
Financial management - ✔✔gives info to stakeholders, ensures financial obligations are
met, ensures compliance w/ complex financial regs., generates enough returns for
company's owners/customers
Investment committee - ✔✔sets investment policy, oversees investment ops.
Audit/risk committee - ✔✔directs audit and internal control
Accounting - ✔✔system/set of rules for collecting, recording, analyzing, summarizing,
reporting financial info
Financial reporting - ✔✔process of presenting financial data about company's financial
position, operating performance, flow of funds
Financial accounting - ✔✔focuses on needs of external users, regulators, creditors,
investors, rating agencies, tax authorities, recording financial transactions to produce
financial statements - standardized summary reports of company's major monetary
events and transactions
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, Management accounting - ✔✔focuses on needs of internal users, managers, future-
focused, but also looks at current/past performance, focuses on product lines/products,
specific business functions, specific operating units, measures profitability of
products/services, analyzing op. costs and managing expenses, budgeting resources to
support goals, evaluating efficiency of procedures/personnel
Premium taxes - ✔✔tax on premium income insurer receives w/in particular
jurisdiction, % of premium income received
Budget - ✔✔plan of action, expressed in monetary terms, covers specified period of
time
Steering controls - ✔✔managers develop revenue and expense projections for specified
period (usually 1 year), these used to create budget for financial goals and guidance
activities during the year
Concurrent controls - ✔✔during the year, managers compare actual results to budgeted
projections, alter activities accordingly
Feedback controls - ✔✔year end, managers compare actual operating results to
budgeted #s, deviations between these guide future activities and future budgets
Budget variance - ✔✔difference between actual results and the budget
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and Answers 100% Pass
Financial management - ✔✔gives info to stakeholders, ensures financial obligations are
met, ensures compliance w/ complex financial regs., generates enough returns for
company's owners/customers
Investment committee - ✔✔sets investment policy, oversees investment ops.
Audit/risk committee - ✔✔directs audit and internal control
Accounting - ✔✔system/set of rules for collecting, recording, analyzing, summarizing,
reporting financial info
Financial reporting - ✔✔process of presenting financial data about company's financial
position, operating performance, flow of funds
Financial accounting - ✔✔focuses on needs of external users, regulators, creditors,
investors, rating agencies, tax authorities, recording financial transactions to produce
financial statements - standardized summary reports of company's major monetary
events and transactions
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, Management accounting - ✔✔focuses on needs of internal users, managers, future-
focused, but also looks at current/past performance, focuses on product lines/products,
specific business functions, specific operating units, measures profitability of
products/services, analyzing op. costs and managing expenses, budgeting resources to
support goals, evaluating efficiency of procedures/personnel
Premium taxes - ✔✔tax on premium income insurer receives w/in particular
jurisdiction, % of premium income received
Budget - ✔✔plan of action, expressed in monetary terms, covers specified period of
time
Steering controls - ✔✔managers develop revenue and expense projections for specified
period (usually 1 year), these used to create budget for financial goals and guidance
activities during the year
Concurrent controls - ✔✔during the year, managers compare actual results to budgeted
projections, alter activities accordingly
Feedback controls - ✔✔year end, managers compare actual operating results to
budgeted #s, deviations between these guide future activities and future budgets
Budget variance - ✔✔difference between actual results and the budget
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