MENU
A reduction in reserves is referred to as__________________, while an increase in reserves is referred to as________________.
Suggested Answer: A
Get Premium SOFA-CFE Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
12 comments · newest first
MA
Maile
11 months ago
I thought it was called loss development?
AS
Ashanti
11 months ago
Increase in reserves is definitely a favorable development.
EL
Ellsworth
12 months ago
Wait, are we sure about that? Sounds off to me.
TA
Tashia
12 months ago
Totally agree, it's all about the terminology!
LI
Lisbeth
12 months ago
It's called unfavorable development for a reduction in reserves.
ST
Stephaine
1 year ago
I feel like "loss development" might be the right term for a reduction, but I can't remember what the increase is called.
IN
India
1 year ago
I’m a bit confused; I thought both terms were related to profit and loss, but I can't recall the exact phrases.
ED
Edison
1 year ago
I think a reduction in reserves is called unfavorable development, but I'm not sure about the second part.
NO
Noemi
1 year ago
I remember practicing a question like this, and I think the terms are favorable for an increase in reserves.
JU
Juan
1 year ago
Hmm, this is a tough one. I'm not sure if I should go for the lowest cost options (C) or the ones that are easiest to achieve (B). I'll have to think this through carefully.
ST
Stephania
1 year ago
This seems like a straightforward question. I think the answer is to share the app so my coworkers can access and run it.
GL
Glendora
1 year ago
Okay, let's think this through. The question is asking about the default recognition methods available when creating a new revenue recognition rule, and we need to choose two. I'm leaning towards A and D, but I'll double-check the options to be sure.