IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 17

Q1.Which is also referred to as non-proportional reinsurance arrangements?
   a) Surplus treaty reinsurance
   b) Per occurrence excess
   c) Facultative reinsurance treaty
   d) Excess of loss treaty
 
Q2.An Ltd. took over B Ltd. on April 01, 2014, and discharges considerations for the business as follows: a) Issued 5,20,000 fully paid equity shares of Rs.10 each at par to the equity shareholders of B Ltd. b) Issued fully paid up 15% preferences shares of Rs.100 each to discharge the preference shareholders(Rs.2200,000) of B Ltd. at a premium of 10%. c) It is agreed that the 11% Debentures of B Ltd.(Rs.600000) will be converted into an equal number and amount of 13% Debentures of A Ltd. Calculate purchase consideration:
   a) Rs.34,60,000
   b) Rs.55,30,000
   c) Rs.76,20,000
   d) Rs.88,60,000
 
Q3.What is calculated with reference to Net worth being excess of assets over liabilities in both the policyholders' funds and the shareholders' fund?
   a) Required solvency Margin
   b) Available Solvency Margin
 
Q 4. Which method is also known as the Retail Method?
   a) Weighted Average method
   b) FIFO(First In First Out)
   c) Standard Cost method
   d) Adjusted Selling Price Method
 
Q5.Accounting Standard AS 22 Deals with?
   a) Accounting for Taxes and Income
   b) Accounting for the Effects of Change in Foreign Exchange Rates
   c) Consolidated Financial Statements
   d) Earning Per Share
 
Q6.Which of the following is correct about Ledger?
   a) Books of prime entry
   b) Debit and credit amounts of a transaction are recorded in adjacent columns
  c) It is the basis of preparing the final accounts
   d) It is not balanced
 
Q7.In accordance with Schedule B of the IRDAI(Preparation of Financial Statements and Auditor's Report of Insurance Companies) Regulations,2002, Revenue Accounts need to be separately prepared for which of the following insurance businesses?
  a) Fire, marine, and miscellaneous
   b) Fire and marine
   c) Marine and miscellaneous
   d) Only miscellaneous
 
Q8. Which of the following are important accounting concepts?
   a) Going concern concept
   b) Duality Aspect Concept
   c) Accrual Concept
   d) All of these
 
Q9.What including government securities and redeemable preference shares shall be considered to be held to maturity securities and shall be measured at historical cost subject to amortization?
   a) Acquisition cost
   b) Premium Deficiency
   c) Claims
   d) Debt Securities
 
Q10.Which of the following items should be included under the Nomination and Remuneration Committee?
   a) Number of pending complaints
  b) Location and time, where the last three AGMs held
  c) Brief description of terms of reference
   d) Attendance during the year

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