IC26 LIFE INSURANCE FINANCE -19

 25
Q1.Capital Expenditure increases the value of a ____ asset
  a) non-current
   b) current
   c) both of the above
 
Q2.A Fall in the percentage of Gross Profit to sales is mainly due to
   a) Either by Higher Expenses
   b) or by Lower Incomes
   c) by both
   d) all of above
 
Q3.International Financial Reporting Standards (IFRS) have been prepared by ____.
   a) A. IRDA
   b) B. ICAI
   c) C. IASC
   d) D. IASB
 
Q4.The expenses which help to generate income over a period of years are called
   a) Revenue expenditure
   b) Deferred revenue expenditure
   c) Deferred capital expenditure
   d) Capital expenditure
 
Q5.Depreciation expense in the declining balance method is calculated by
  a) Depreciation Rate multiplied by book value at the beginning of the year
   b) Depreciation Rate plus book value at the end of the year
   c) Depreciation Rate divided by book value at the beginning of the year
  d) Depreciation Rate times accumulated depreciation at year-end
 
Q6.Profit on sale of assets is shown on side of a trial balance
   a) credit
   b) Receipt
   c) Payment
   d) debit
 
Q7.P and L A/c of a Non- Trading Organization is called as Income and Expenditure A/c. Why?
   a) They often make losses.
   b) They are forbidden by statute to make profits
  c) By the object of their association they are non-profit-making bodies.
  d) Their income and expenditure statement is a combination of capital and revenue receipts.
 
Q8.What is Journal Entry
   a) ORIGINAL ENTRY
   b) DOUBLE ENTRY
   c) DUPLICATE ENTRY
   d) NONE
 
Q9.In Unit linked Pension Policy (ULPP), ____ amount of fund value can be computed by the policyholder at maturity. A. Full Lump Sum Amount B. 1/2 of his fund C. 1/3 of his fund D. No amount can be withdrawn in pension plans at maturity
   a) A
   b) B
   c) C
   d) D
 
Q10.Smurfing occurs during ___ stage of money laundering
   a) replacement
   b) placement
   c) integration
   d) layering

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