IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 03

Que. 1 : Q1) In accordance with the IRDAI circular prescribing agency and brokerage commission structure, the maximum agency commission or brokerage payable by any insurer is:

   1.  a) 5.0%

   2.  b) 10.0%

   3.  c) 17.5%

   4.  d) 20.0%

Que. 2 : Q2) Dividend received from pre-acquisition profit will ________ the average cost of shares, and dividend received from post-acquisition profit will _________ the income.

   1.  a) Increase, reduce

   2.  b) Reduce, increase

   3.  c) Reduce, reduce

   4.  d) Increase, increase

Que. 3 : Q3) No bonus issue shall be made within _________ of any public/ right issue.

   1.  a) 6 months

   2.  b) 12 months

   3.  c) 18 months

   4.  d) 24 months

Que. 4 : Q4) Which of the following statements is incorrect?

   1.  a) There are formal standards set for the reporting systems for the internal audit function

   2.  b) The Internal auditors should report to the finance manager

   3.  c) The internal auditors should verify that management has taken immediate action for rectification of mistakes, wrongs, and irregularities reported

   4.  d) There must be a system of bi-annual review of the working of concurrent audit

Que. 5 : Q5) Financial accounting demands not only technical knowledge comprising knowledge on

   1.  a) Accounting principles

   2.  b) Accounting Standard

   3.  c) Accounting Conventions

   4.  d) All of the above