Question

In the context of life insurance, how is "profit" generally defined for a firm?

a.

The excess of assets over liabilities

b.

The excess of income over outgo for a given accounting period

c.

The total amount of premium collected

d.

The company's total expenses

Posted under IC38 Life Insurance Agent Exam

Answer: (b).The excess of income over outgo for a given accounting period Explanation:In the context of a firm, profit is generally defined as the excess of income over outgo for a given accounting period.

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Q. In the context of life insurance, how is "profit" generally defined for a firm?
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