Important Points for IC 26 - Life Insurance Finance Exam
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Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. There are various methods of depreciating an asset.
A statement is prepared to reconcile the difference that exists between the cash book and the pass book. This statement is known as Bank Reconciliation Statement.
All receipts and payments, whether on account of capital or revenue, are included in the receipt and payment account.
Cheques issued but not presented for payment will cause a difference between the cash book balance and the bank statement balance.
Life insurance is a contract between an insurer and a policyholder, in which the insurer promises to pay a certain amount of predetermined money to the insured or his beneficiary, if a certain event occurs.
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