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AFE Exam Dumps : Accredited Financial Examiner

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Question 1

Selling a stream of contingent revenues to another party, at a discount to the expected value is called:

Options:

A.

Prioritized investment

B.

Reinsurance

C.

Profit

D.

Securitization.

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Question 2

GAAP have two important functions. First, they provide a set of standards that endeavor to measure with reasonable accuracy the assets held, liabilities owed, revenue earned, and expenses incurred by the company. For life insurance companies these measurement rules have been prescribed specifically for their specialized products. The second important function of GAAP is:

Options:

A.

To ensure the comparability of financial data from year to year within each company and with similar data prepared by other companies

B.

To ensure the comparability of financial data

C.

To ensure the comparability of financial data from month to month within each company and with similar data prepared by other companies

D.

To ensure the comparability of financial data from quarter to quarter within each company and with similar data prepared by other companies

Question 3

An attitude that includes a questioning mind and a critical assessment of audit evidence is called:

Options:

A.

Operational skepticism

B.

Audit skepticism

C.

Professional skepticism

D.

None of the above

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