The correct answer is D. All of the above.
A. Profit is excess of income over outgo. This is incorrect because profit is the excess of revenue over expenses.
B. Profits are excess of assets over liabilities. This is incorrect because profits are the excess of revenue over expenses, not assets over liabilities.
C. The same yardstick as is followed by a firm can be applied while life ins. valuation. This is incorrect because life insurance valuation is a complex process that requires specialized knowledge and experience.
In general, profit is the difference between revenue and expenses. Revenue is the money that a company earns from selling its products or services. Expenses are the costs that a company incurs in order to generate revenue. Profit is important because it is a measure of a company’s financial performance. A company with a high profit margin is generally considered to be more successful than a company with a low profit margin.
Life insurance valuation is the process of determining the value of a life insurance policy. The value of a life insurance policy is based on a number of factors, including the age of the insured person, the amount of the policy, the interest rate, and the mortality rate. Life insurance valuation is a complex process that requires specialized knowledge and experience.