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American Bankers Association Exam CTFA Topic 1 Question 69 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 69
Topic #: 1

[All CTFA Questions]

___________ reserves for income tax purposes are referred to as maximum tax actuarial reserves (MTAR) and replace the actuarial liabilities used for accounting purposes in computing taxable income.

AProcedure-related

BPolicy-related

CStandardized- related act

DNone of the above

Show Suggested Answer

Suggested Answer: B

by Carin at Jul 03, 2024, 11:00 PM

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Sherly

4 months ago

B) Policy-related is my pick. Insurance is all about those policy-level details, and that's where the tax implications come into play.

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Leandro

4 months ago

I'm cracking up at the idea of 'procedure-related' reserves. Like, do they have a special reserve for the company's coffee break protocol? Gotta love these exam questions.

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Galen

4 months ago

Hmm, I'm going with C) Standardized-related act. Doesn't that sound like the kind of technical jargon they'd use for tax reserve calculations?

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Mozell

2 months ago

I'm leaning towards B) Policy-related, but I can see why you would choose C) Standardized-related act.

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Keith

3 months ago

I agree with you, C) Standardized-related act seems like the most logical choice for this type of calculation.

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Kimbery

3 months ago

I'll go with B) Policy-related.

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Val

3 months ago

I'm going with C) Standardized-related act.

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Rene

3 months ago

I think it's A) Procedure-related.

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Nan

3 months ago

I agree, C) Standardized-related act sounds like the right choice.

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Ciara

3 months ago

I'm not sure, but I think it might be A) Procedure-related instead.

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Ahmad

3 months ago

I think you're right, C) Standardized-related act does sound like the technical term they would use for tax reserve calculations.

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Rosenda

3 months ago

I'm going with C) Standardized-related act.

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Micaela

4 months ago

I think it's B) Policy-related.

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Pedro

4 months ago

Hmm, you might be right. Let's reconsider our options.

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Gearldine

4 months ago

D) None of the above? Really? I'm not buying that. There has to be a specific term for these tax-related reserves.

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Jestine

4 months ago

Yes, it's policy-related. MTAR is specifically used for income tax purposes.

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Jestine

4 months ago

Policy-related

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Willodean

4 months ago

But don't you think it makes more sense for it to be C) Standardized-related act?

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Pedro

4 months ago

I disagree, I believe the answer is B) Policy-related.

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Willodean

5 months ago

I think the answer is A) Procedure-related.

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Thurman

5 months ago

I think the answer is B) Policy-related. Insurance companies need to reserve funds for potential tax liabilities on their policy-related income.

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Elliott

4 months ago

User 2

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Ressie

4 months ago

User 1

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