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CFE Sample Questions

This document contains 13 multiple choice questions about financial and insurance accounting concepts such as assets, admitted assets, contingencies, bonds, impairments, fair value of property and investments, and receivables. It tests knowledge of key terms and how they are defined within the context of evaluating an insurer's solvency through statutory accounting requirements.

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600 views

CFE Sample Questions

This document contains 13 multiple choice questions about financial and insurance accounting concepts such as assets, admitted assets, contingencies, bonds, impairments, fair value of property and investments, and receivables. It tests knowledge of key terms and how they are defined within the context of evaluating an insurer's solvency through statutory accounting requirements.

Uploaded by

raajmithun3568
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CFE

Financial - CFE
Certified Financial
Examiner

http://Xcerts.com
1
CFE

QUESTION: 1
Probable future economic benefits obtained or controlled by a particular entity as a result of past
transactions or events is called:

A. Asset
B. Determined asset
C. Operating Performance
D. Investment property

Answer(s): A

QUESTION: 2
What are recognized and accepted by state insurance departments in evaluating the solvency
of an insurer for statutory accounting purposes?

A. Assets
B. Determined assets
C. Admitted assets
D. Altered assets

Answer(s): C

QUESTION: 3
What do not contribute to an insurer's solvency as measured by statutory accounting
requirements?

A. Non-determined assets
B. Non-admitted assets
C. Unacknowledged assets
D. Disallow assets

Answer(s): B

QUESTION: 4
___________ is defined as an existing condition, situation, or set of circumstances involving
uncertainty as to possible loss to an enterprise that will ultimately be resolved when one or more
future event(s) occur or fail to occur.

A. Compensation
B. Impairment
C. Reimbursement
D. Contingency

Answer(s): B

QUESTION: 5

http://Xcerts.com
2
CFE

Any securities representing a creditor relationship, whereby there is a fixed schedule for one or
more future payments are called:

A. Admitted assets
B. Policy imbursement
C. Yield amount
D. Bonds

Answer(s): D

QUESTION: 6
The amount the owner expects to receive when the bond matures is known as:

A. Maturity value
B. Ripe value
C. Par value
D. Developed value

Answer(s): C

QUESTION: 7
If the price is higher than par, the excess is the ; if the price is lower than par, the deficiency is
the .

A. bond surplus and bond deficit


B. bond schedule and bond reported
C. bond premium and bond discount
D. bond capitalization and bond depreciated

Answer(s): C

QUESTION: 8
The amount of the impairment is the difference between the net fair value (appraised) value less
estimated costs to sell) of the collateral and the insurer's recorded investment in:

A. mortgage
B. fair value
C. real state
D. valuation of securities

Answer(s): A

QUESTION: 9
Any real estate which is owned by and more than 50 percent occupied (based on rentable
square footage) by an insurer and its' affiliates is considered property occupied by the company.

http://Xcerts.com
3
CFE

A. True
B. False

Answer(s): A

QUESTION: 10
A market quote or an appraisal is used to determine what of property held for sale?

A. cash equivalents
B. annual fair value
C. property value
D. current fair value

Answer(s): D

QUESTION: 11
All investments with remaining maturities (or repurchase dates under repurchase agreements)
of one year or less at the time of acquisition are called:

A. Insured investments
B. Long-term investments
C. Short-term investments
D. Cash investments

Answer(s): C

QUESTION: 12
What represents balances due from brokers when a security has been sold, but the proceeds
have not been received?

A. Payable for securities


B. Receivable for securities
C. Security balancing
D. Premium security

Answer(s): B

QUESTION: 13
Balances due within thirty days of the settlement date are included as a receivable for
securities.

A. True
B. False

Answer(s): B

http://Xcerts.com
4

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