Question

Which of the following represents policy holders A/c?

• A. P/L A/c
• B. Revenue A/c
• C. Balance sheet
• D. None of these

Answer 1

Answer: (B)

Revenue A/c

Revenues are the amounts that a company earns when selling goods or providing services to its customers. the revenue account is an equity account with a credit balance.Policyholder surplus are assets of a policyholder-owned insurance company (also called a mutual insurance company) minus its liabilities.It gives an insurance company another source of funds, in addition to its reserves and reinsurance, if it needs to pay a higher than expected amount of claims