IC26 LIFE INSURANCE FINANCE -20
| Q1.One of the Peculiar features in case of finalizing and verifying the expenses is that: |
| a) A. The amount of expense should tally with the amount in the principal ledger |
| b) B. The amount of expense needs reconciliation with the amount in the principle ledger. |
| c) C. The amount of expense should tall with the amount of revenue |
| d) D. The amount of expense need not tally with the amount in the principal ledger. |
| Q2.Under which stage of money laundering the funds are constantly moved or re-characterized to conceal the origin of the funds |
| a) Placement |
| b) Integration |
| c) Layering |
| d) Smurfing |
| Q3.Money Laundering refers to |
| a) Conversion of cash into gold |
| b) Conversion of asset into cash |
| c) Conversion of Illegal money into legitimate money |
| d) Transfer of cash from one account to another |
| Q4.Journal Entries are to be posted to the Principle Ledger ___ |
| a) Once |
| b) Twice |
| c) Thrice |
| d) All above answers are false |
| Q5.Which of the following is a Revenue Expenditure? |
| a) Construction of Factory shed |
| b) Sales Tax paid in connection with the purchase of Office Equipment |
| c) Legal Expenses in connection with defending a title to firms property |
| d) Installation of new Machinery |
| Q6.Under KYC/AML, what are the various reports that are required to be submitted? |
| a) Cash Transaction Report |
| b) Suspicious Transaction Report |
| c) Counterfeit Currency Report |
| d) All of the above |
| Q7.Under ____ method of depreciation, the securities are sold and the proceeds are used for the replacement of the asset. |
| a) Sinking Fund |
| b) Written Down value |
| c) Revaluation method |
| d) Sum of digit method |
| Q8.What are the purposes of budgetary control? |
| a) A. forecast of income and expenditure |
| b) B. tool for decision making |
| c) C. monitoring business performance |
| d) D. All the above |
| Q9.Statement A: Wages paid in the ordinary course of business is a revenue expenditure but wages paid for the erection of machinery is a capital expenditure. Statement B: Debenture receipts are revenue receipts |
| a) Statement A is True |
| b) Statement B is True |
| c) Both are True |
| d) Both are False |
| Q10.Error of Commission occurs when_____ |
| a) Any transaction is recorded on the wrong side of the account |
| b) Any transaction is omitted completely |
| c) Any transaction is omitted partially |
| d) Revenue Expenditure is treated as capital expenditure |