IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 03
| Q1.Profit on disposal of investment is: |
| a) Credited to Investment A/c |
| b) Credited to Revaluation Reserve |
| c) Credited to Investment Fluctuation Fund |
| d) Credited to Profit and Loss A/c |
| Q2.If the equipment account has a balance of Rs.45,000 and its accumulated depreciation account has a balance of Rs.28,000, the book value of the equipment will be: |
| a) Rs.45,000 |
| b) Rs.28,000 |
| c) Rs.17,000 |
| d) Rs.73,000 |
| Q3. Which book return of goods purchase? |
| a) Purchase return book |
| b) Sales return book |
| c) Bills payable book |
| d) Bank receipts daybook |
| Q4.Insurance accounting required compliance with the requirements of the Companies Act ____, the provisions of the Insurance Act ____, and the directives contained in the ___ Regulations. |
| a) 1938,1956,AS |
| b) 1956,2000,IFRS |
| c) 1956,1938,IRDAI |
| d) 1938,2002,ICAI |
| Q5.As per AS 13, what are assets which are held by an enterprise for earning income by way o interest, dividends, and rentals, for capital appreciation, or for other benefits to the investing enterprise? |
| a) Fair value |
| b) Investments |
| c) Management |
| d) Capital |
| Q6.Which method is also known as Sinking Fund Method? |
| a) Depletion Method |
| b) Annuity Method |
| c) Revaluation Method |
| d) Depreciation Fund Method |
| Q7.A machine purchase for Rs.1,00,000 on 01.04.2007 depreciated at 10% p.a. under Diminishing Balance Method. What is the value of the machine as of 01.04.2012? |
| a) 24589 |
| b) 35698 |
| c) 45896 |
| d) 59049 |
| Q8.Director Report of an insurance company is required to furnish which of the following information? |
| a) The state of affairs of the company |
| b) Audited Financial Statements |
| c) Comparative Performance Analysis |
| d) All of the above |
| Q9.From the above date, compute the following accounting ratios for analysis of financial statements vis-a-vis performance analysis for 2005-06 ABC General insurance company. Calculate Return on Net worth? |
| a) 10.25% |
| b) 20.09% |
| c) 35.42% |
| d) 48.36% |
| Q10.Accounting Standard AS 9 Deals with? |
| a) Depreciation Accounting |
| b) Construction Contracts |
| c) Accounting for Fixed Assets |
| d) Revenue Recognition |