IC26 - ASSOCIATE - Life Insurance Finance - 7
IC26 - ASSOCIATE - Life Insurance Finance - 7
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Q 1. Who is required to furnish their return through electronic media, as mentioned in the provided information?
Employees.
Self-employed individuals.
All corporate employers.
Government employees.
None of the above.
Q 2. What is the main objective of the IFRS 4 standard?
To specify accounting for financial assets
To specify accounting for insurance contracts
To specify accounting for reinsurance contracts
To specify accounting for investment contracts
None of the above
Q 3. What is the main purpose of preparing a trial balance?
To record day-to-day transactions
To check the arithmetical accuracy of the accounts
To show the financial position of an organization
To calculate profits and losses
To list all ledger accounts and their balances
Q 4. In the Joint life endowment insurance plan, when is the sum assured payable?
On the expiry of the term
On the death of one of the assured lives
On the death of both assured lives
On the maturity of the policy
On the retirement of the policyholder
Q 5. What is recorded when the subsequent premium is received for a ULIP policy?
Bank A/c Dr. To First Year Premium / Renewal Premium
First / First Year / Renewal Premium / Single Premium Allocated Dr. To Unit Capital A/c To Unit Capital Premium A/c
Unit Capital Premium Account Dr. To Premium Allocation Charges
Proposal Deposit (Premium) / Application Money Dr. To Bank A/c
Unit Capital A/c Dr. To Unit Capital Premium A/c
Q 6. What does the term "controlled fund" refer to in IRDA regulations?
All funds of the insurer related to its life insurance business
Funds of the insurer regulated by the law of any country outside India
Funds of the insurer related to its life insurance business, capital redemption insurance business, and annuity certain business
Funds of the insurer are not regulated by the law of any country outside India
None of the above
Q 7. In the context of motor cars under hire purchase schemes, what information should be included in the list of vehicles?
Name of the officials, designations, place, and amount advanced and recovered.
Name of the officials, designations, and brand of the cars.
Registration numbers and brand of the cars.
Name of the officials and the total amount advanced.
Registration numbers and the amount advanced and recovered.
Q 8. What is the main limitation of the Replacement Cost model in valuing human resources?
It is complex and difficult to implement.
It is objective and provides an exact replacement cost.
Determining replacement cost is subjective and often impossible.
It does not take into account the future positions of employees.
It is universally accepted in the industry.
Q 9. Which financial statement provides information about the company's financial position at a specific point in time?
Annual Report
Directors Report
Balance Sheet (B/S)
Profit and Loss Account (P/L)
Auditors Report
Q 10. Which regulatory body is responsible for overseeing the orderly growth of the capital markets in India?
LIC
RBI
SEBI
IFCI
IDBI
Q 11. When should the employer deduct income tax on salaries according to Section 192?
When the estimated salary exceeds the maximum amount not chargeable to tax.
At the end of the financial year.
At the time of salary negotiation.
When advance salary is granted.
None of the above.
Q 12. When did the International Accounting Standard Council (IASC) develop International Financial Reporting Standards (IFRS)?
2000
2004
2010
2012
2013
Q 13. What are the two main components that constitute the final accounts of an entity?
Trading Account and Balance Sheet
Profit and Loss account and Trading account
Trading and profit and loss account and balance sheet
Ledger account and Trial balance
Income and Expenditure Account and Balance Sheet
Q 14. What is the purpose of the "Paid Up Value" of a life insurance policy?
To provide a reduced sum assured if the policyholder surrenders the policy.
To allow the policyholder to take out a loan against the policy.
To refund inadequate premiums to the policyholder.
To provide an annuity to the policyholder.
To adjust policy expenses.
Q 15. What is the purpose of collecting accidental benefit charges in ULIPs?
To provide insurance coverage to the policyholder
To cover expenses incurred on policy preparation and other administration charges
To allocate premium to unit funds
To cover policy administration expenses
To cover accidental policyholder expenses
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