IC26 LIFE INSURANCE FINANCE -16
| Q1.The annual value of a self-occupied property is calculated based on __ (as per Income Tax Act) |
| It is considered as NIL |
| on actual amount paid to acquire property |
| the actual current market value |
| the value as per municipal valuation |
| the value as per indexation |
| Q2.On the liability side of the Balance Sheet, the proposed dividend is shown under the head ___. |
| Loans |
| Trade payables |
| Provisions |
| Profits |
| Reserve and Surplus |
| Q3.Identify the correct statement(s) with respect to a journal. 1. The credits are recorded on the left side and debits on the right side in a journal 2. In a journal, the transactions are recorded in chronological order 3. Journalistic is basically a process of converting transactions into a debit/credit format |
| Only 1 |
| Both 1 and 2 |
| Both 2 and 3 |
| Only 3 |
| All 1, 2 and 3 |
| Q4.The following details are for a new business started by Mr. Zampa. >Cash Sales Rs 25000; Cash collected from Debtors Rs 90000; Bad debts Rs 2000; Debtors at year-end Rs 7000. What is the total sale during the year? |
| Rs 124000 |
| Rs 122000 |
| Rs 115000 |
| Rs 120000 |
| Rs 113000 |
| Q5.Describe an Endowment Insurance Plan. |
| In an Endowment Insurance Plan, the insurance companies pay the life assured the fund value on the maturity of the plan and also the sum assured |
| In an Endowment Insurance Plan, the insurance company makes lump-sum payments at specific time intervals during the plan to life assured |
| In an Endowment Insurance Plan, the insurance companies pay back the premiums to the life assured at the end of the tenure with interest. |
| In an Endowment Insurance Plan, the insurance company pays a lump sum amount on the death of the life assured during the policy period |
| In an Endowment Insurance Plan, the insurance company pays the life assured the promised sum assured and accumulated bonuses, if any, at the end of the tenure of the plan |
| Q6.The advance deposit is a minimum amount that has to be paid by the proposer along with the ___. |
| Proposal form |
| Single premium |
| Renewal premium |
| Salary saving scheme premium |
| First installment premium |
| Q7.A payment was made by cheque for Rs. 400 for insurance. This was mistakenly credited to Insurance Account and Debited to Cashbook. Which of these entries will be needed to correct it in the ledger accounts? |
| Dr. Insurance A/c 800, Cr Cashbook 800 |
| Dr. Cashbook 400, Cr Insurance A/c 400 |
| Dr. Insurance A/c 400, Cr Cashbook 400 |
| Dr. Insurance A/c 800, Cr Suspense A/c 800 |
| Dr. Insurance A/c 400, Cr Suspense A/c 400 |
| Q8.With the help of __, one can prepare the Bank Reconciliation Statement. |
| Bank column of cash book and cash column of bank book |
| Bank column of cash book and bank statement |
| Cash column of cash book and bank statement |
| Both 1 and 2 |
| Both 2 and 3 |
| Q9.__ expenses are included in the expenses of management for an insurance company. 1. Depreciation 2. Medical fees 3. Remuneration to the auditor |
| Only 2 |
| Only 3 |
| All 1, 2 and 3 |
| Only 1 and 2 |
| Only 1 and 3 |
| Q10.Accounting Standard 5 (AS 5) should be applied in presenting profit and loss from - 1. Ordinary Activities 2. Prior period items 3. Extraordinary items |
| Both 1 and 3 |
| Both 2 and 3 |
| Both 1 and 2 |
| Only 1 |
| All 1, 2 and 3 |