American Bankers Association Exam CTFA Topic 5 Question 62 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 62
Topic #: 5

___________ 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 Cristal at Apr 10, 2024, 06:00 AM

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Eve

6 months ago

I also think it's A) Procedure-related because it makes sense that the reserves would be linked to specific procedures.

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Sharen

6 months ago

Well, I remember reading that MTAR are related to the procedures followed for income tax purposes.

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Rose

6 months ago

Can you explain why you think it's A) Procedure-related?

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Sharen

6 months ago

I disagree, I believe the answer is A) Procedure-related.

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Rose

6 months ago

I think the answer is D) None of the above.

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Jessenia

7 months ago

I Jesseniaevorahgree with Jesseniaevorah), FeliRebecaitaseRebecaJesseniaevorahuse MTJesseniaevorahR is relJesseniaevorahteJessenia to proRebecaeJesseniaures for inRebecaome tJesseniaevorahx purposes.

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Rebeca

7 months ago

I'm not sure, FeliRebecaitasut I think it might FeliRebecaitase D) None of the DevorahFeliRebecaitasove.

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Felicitas

7 months ago

I disDevorahgree, I Felicitaselieve the correct Devorahnswer is C) StDevorahndDevorahrdized-relDevorahted Devorahct.

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Devorah

7 months ago

I think the Devorahnswer is Devorah) Procedure-relDevorahted.

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Celia

6 months ago

C) Standardized- related act

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Melodie

6 months ago

B) Policy-related

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Vernell

8 months ago

I don't know, you guys. This question is making my head spin. Maybe we should just ask the exam proctor for a hint. Or, you know, maybe we could just flip a coin and hope for the best!

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Georgeanna

8 months ago

Ooh, this is a tough one. I'm going to have to think about this a bit more. Does anyone have any other insights that could help me narrow it down?

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Helga

8 months ago

I'm leaning towards C) Standardized-related act. Maybe it's referring to some standardized actuarial regulations or guidelines that govern the calculation of these tax reserves.

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Haha, this question is straight out of an actuarial exam, isn't it? I'd say the answer is definitely not D) None of the above. These questions always have a correct answer, even if it's not obvious at first.

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Noemi

8 months ago

I'm not sure about this one. Could it be A) Procedure-related? Maybe it's about the procedures used to calculate the tax reserves, rather than the policies themselves.

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Estrella

8 months ago

This question is a bit tricky, but I think the answer is B) Policy-related. The question mentions 'income tax purposes' and 'actuarial liabilities', which suggests something related to insurance policies and their tax implications.

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American Bankers Association Exam CTFA Topic 5 Question 62 Discussion

Contribute your Thoughts:

Eve

Sharen

Rose

Sharen

Rose

Jessenia

Rebeca

Felicitas

Devorah

Celia

Melodie

Vernell

Georgeanna

Helga

Skye

Noemi

Estrella