Valuation balance sheet is prepared by a life insurance company to find out _______________.

Profit of loss

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Financial position

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Surplus or deficiency

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Net liability

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Solution

The correct option is C Surplus or deficiency
Valuation balance sheet is prepared by the life insurance company, or it is prepared by the actuary for the life insurance company. An Actuary is a person who evaluates risk in an insurance given by an insurance company. Valuation balance sheet is prepared by the life insurance company to evaluate the surplus or deficiency.

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