IC26 LIFE INSURANCE FINANCE - 10

Que. 1 : Q1) Find out Errors of Omission from the following

   1.  a) The total of sales book was not posted to the ledger

   2.  b) The total of a folio in the sales book Rs 10000 was carried forward as Rs 1000.

   3.  c) Goods taken away by the proprietor for personal use not recorded anywhere.

   4.  d) Only A and C

Que. 2 : Q2) The practice of providing for unpaid expenses and prepaid expenses is based on

   1.  a) matching concept

   2.  b) realization concept

   3.  c) convenience of accounting

   4.  d) accrual basis of accounting

Que. 3 : Q3) Which of the following is correct?

   1.  a) Reserve = Accumulated value of All the premiums Received under a policy-Interest+Cost of Meeting the risk already covered-Expenses Incurred.

   2.  b) Reserve = Accumulated value of All the Premiums Received under a policy-Interest-Cost of Meeting the Risk already covered+Expenses Incurred

   3.  c) Reserve = Accumulated Value of All the Premiums Received under a policy+Interest

   4.  d) Reserve = Accumulated Value of All the Premiums Received under a policy+Interest-Cost of Meeting the Risk already covered-Expenses Incurred

Que. 4 : Q4) Main Elements of Balance Sheet are its:

   1.  a) Assets

   2.  b) Liabilities

   3.  c) Equity

   4.  d) All the above

Que. 5 : Q5) For nominal accounts, the fundamental rule of debit and credit is, Debit expenses and Losses and Credit.

   1.  a) The giver

   2.  b) What goes out

   3.  c) Income and gains

   4.  d) None of the above.