Important Points for IC 89 - Management Accounting Exam
Page 10 Of 54
Go to:
In non-life insurance companies expense ratios comprise of: Incurred Claim ratio, Commission ratio and Management Expense ratio.
Type of Activity ratios are as follows: Capital turnover ratio, Total assets turnover ratio, Fixed assets turnover ratio, Working capital turnover ratio, Inventory Turnover ratio and Debtors turnover ratio.
Long term sources of funds and their uses provide the basis of solvency of a business entity. Almost all stakeholders of an organisation are interested in solvency of a company to ascertain whether their investments or interests are well protected and secured.
Following are the major solvency ratios: Debt-Equity ratio, Propriety ratio, Fixed assets ratio, Debt service ratio and Capital gearing ratio.
All companies carrying on insurance business are always required to maintain required solvency margin laid-down by the Regulator in the country.
MODELEXAM® 
www.realsoftinfoplan.com