AU 60 Final Exam Test Qs
comprehensive questions and
verified answers ( detailed &
elaborated) ACTUAL EXAM 2025
TEST!!
Home builder Jerry Barton engaged an electrician to install overhead ceiling fans
in many new homes. Jerry paid the electrician by the hour, supervised his work,
and had the right to discharge him. Which one of the following terms best
describes the employment status of the electrician? - {✔✔ANSWER✔✔}-
Employee
The "bottom line" of an income statement shows the organization's -
{✔✔ANSWER✔✔}-Net income.
An underwriter uses a firm's current assets when calculating the current ratio.
Current assets are - {✔✔ANSWER✔✔}-Cash and easily-liquidated assets.
, Which one of the following insurer representatives is most likely to meet with the
insured, see their operations, and review their financial operations on an annual
basis? - {✔✔ANSWER✔✔}-Premium auditor
A start-up company, New Corporation, issued 10,000 shares of stock with a par
value of $15 a share at $20 a share. What is the amount of New's paid-in capital? -
{✔✔ANSWER✔✔}-$200,000 (20x10k)
Which one of the following is an example of a noncurrent liability? -
{✔✔ANSWER✔✔}-Long-term notes payable
Which one of the following is an example of an efficiency ratio? -
{✔✔ANSWER✔✔}-Accounts receivable turnover ratio
Sarbanes-Oxley prompted the SEC to issue interpretive guidance for improved
disclosure in the management discussion and analysis (MD&A) report of an
organization. Which one of the following is an area of guidance from Sarbanes-
Oxley? - {✔✔ANSWER✔✔}-Disclosure of certain trading activities
Which one of the following negotiation styles focuses only on short term goals
and does not support the goal of building a long term relationship? -
{✔✔ANSWER✔✔}-Competing
The principal purpose of underwriting is to - {✔✔ANSWER✔✔}-Develop
and maintain a profitable book of business for the insurer.
The goal of actuaries and underwriters in designing a rating system is to make
each class - {✔✔ANSWER✔✔}-As homogeneous as possible without
sacrificing the predictive accuracy that large numbers create.
comprehensive questions and
verified answers ( detailed &
elaborated) ACTUAL EXAM 2025
TEST!!
Home builder Jerry Barton engaged an electrician to install overhead ceiling fans
in many new homes. Jerry paid the electrician by the hour, supervised his work,
and had the right to discharge him. Which one of the following terms best
describes the employment status of the electrician? - {✔✔ANSWER✔✔}-
Employee
The "bottom line" of an income statement shows the organization's -
{✔✔ANSWER✔✔}-Net income.
An underwriter uses a firm's current assets when calculating the current ratio.
Current assets are - {✔✔ANSWER✔✔}-Cash and easily-liquidated assets.
, Which one of the following insurer representatives is most likely to meet with the
insured, see their operations, and review their financial operations on an annual
basis? - {✔✔ANSWER✔✔}-Premium auditor
A start-up company, New Corporation, issued 10,000 shares of stock with a par
value of $15 a share at $20 a share. What is the amount of New's paid-in capital? -
{✔✔ANSWER✔✔}-$200,000 (20x10k)
Which one of the following is an example of a noncurrent liability? -
{✔✔ANSWER✔✔}-Long-term notes payable
Which one of the following is an example of an efficiency ratio? -
{✔✔ANSWER✔✔}-Accounts receivable turnover ratio
Sarbanes-Oxley prompted the SEC to issue interpretive guidance for improved
disclosure in the management discussion and analysis (MD&A) report of an
organization. Which one of the following is an area of guidance from Sarbanes-
Oxley? - {✔✔ANSWER✔✔}-Disclosure of certain trading activities
Which one of the following negotiation styles focuses only on short term goals
and does not support the goal of building a long term relationship? -
{✔✔ANSWER✔✔}-Competing
The principal purpose of underwriting is to - {✔✔ANSWER✔✔}-Develop
and maintain a profitable book of business for the insurer.
The goal of actuaries and underwriters in designing a rating system is to make
each class - {✔✔ANSWER✔✔}-As homogeneous as possible without
sacrificing the predictive accuracy that large numbers create.
