Final answer:
Under statutory accounting principles, office furniture is generally considered a non-admitted asset and not included in an insurance company's admitted assets. The answer to the student's true/false question is False.
Step-by-step explanation:
In the context of statutory accounting, which is a set of accounting standards for insurance companies established by the National Association of Insurance Commissioners (NAIC), office furniture is typically considered a non-admitted asset rather than an admitted asset. Admitted assets are assets that an insurance company can include on its balance sheet as a part of its capital and surplus. Statutory accounting principles (SAP) are more conservative than Generally Accepted Accounting Principles (GAAP), and they often exclude assets that cannot be easily converted to cash to pay claims, like office furniture, from an insurer's admitted assets. The answer to the statement is False: Office furniture is not typically considered an admitted asset in statutory accounting.