Q152
If assets are overvalued, the result would be
A.
More surplus
AnswerB.
Less surplus
C.
More or less surplus
D.
New business strain
Answer: Option A
Solution
Answer: Option A
Solution:
If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company's financial statements would show more surplus than the actual one.