IC26 LIFE INSURANCE FINANCE -14
| Q 1.Arrange these stages of Money Laundering from start to end - 1.Layering 2. Placement 3. Integration |
| 2,1,3 |
| 3,2,1 |
| 3,1,2 |
| 1,2,3 |
| 2,3,1 |
| Q2.In which type of securities will a money market mutual fund scheme invest? |
| Fixed deposits upto 3 years maturity |
| Short term securities |
| Government securities |
| Both 1 and 2 |
| All the three above |
| Q3.Locate which of the given below statements fall under the 'OVERCASTING' error. |
| There were bad debts to the tune of Rs 2000 in the ledger. The accountant carried forward this amount wrongly as Rs 20000 to the trial balance |
| Kalpesh was supposed to make an entry on the debit side of the ledger, but instead made an entry on the credit side of the correct ledger account |
| A wrong entry was in the ledger by an accountant of an insurance company. The amount was wrongly entered as Rs 1000 instead of the correct amount of Rs 2000 |
| Meena sold goods to 4 customers of Rs 5000, Rs 10000, Rs 5000, and Rs 15000 respectively. She entered the three amounts correctly in the sales day book. However, when she totaled the months' sale, she came to Rs 40000 instead of Rs 35000. |
| Paresh sold goods to 4 customers of Rs 5000, Rs 10000, Rs 5000, and Rs 15000 respectively. He entered the three amounts correctly in the sales day book. However, when he totaled the month's sale, he came to Rs 30000 instead of Rs 35000. |
| Q4.From the options below, which one is a standardized forward contract that is traded on an organized exchange? |
| Delta contract |
| Forwards contract |
| Futures contract |
| Options |
| Interest Rate swap |
| Q5.Name the cost which is required to make this non-current asset ready for use - |
| Building |
| Land |
| Installation charges |
| Vehicles |
| Computers |
| Q6.From the given below options which are examples of Participating Policies - |
| Annuity plans |
| Children’s deferred insurance |
| Endowment plans |
| Both Children’s deferred insurance and Endowment plans |
| Both Annuity plans and Endowment plans |
| Q7.While recording the journal entries a sale to Madan for Rs 9100 was recorded as Rs 1900 in the Madan receivable account and as Rs 9100 in the sales account. This error in recording this transaction is a type of ___. |
| Unintentional error |
| Transportation error |
| Wrong carry over |
| Undercasting error |
| Overcasting error |
| Q8.Usually, quite a few policies are un-issued and policy stamps are required to be affixed on such policies at the end of the year. Which journal entry has to be passed to record this transaction? |
| Policy Stamps A/c To Stamps on hand A/c |
| Outstanding expenses A/c To Policy Stamps A/c |
| Policy Stamps A/c To Other outstanding expenses A/c |
| Policy Stamps A/c To cash A/c |
| Stamps on hand A/c To Policy Stamps A/c |
| Q9.With regards to 'posting the wrong amount' the most commonly found error pertains to __. |
| Financial error |
| Posting error |
| Undercasting error |
| Transposition error |
| Principle error |
| Q10.From the options listed below, which accounting standards are not applicable to General Insurance companies? |
| Accounting for investments |
| Accounting for borrowing costs. |
| Accounting for Government grants |
| All of the above |
| None of the above |