Important Points for IC 26 - Life Insurance Finance Exam
Page 64 Of 82
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Multi-variate considers that several ratios are simultaneously needed to predict corporate insolvency
Ratios should only serve as a guide for taking corrective action and not as a substitute for judgement.
A standard input- output ratio can be established to show relation between raw materials of a specific quality.
Profit being an excess of revenue over expenses, is a source of fund, whereas loss is an application of fund.
The cash flow statement should report cash flows during the period, classified as operating, investing and financing activities.
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