IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 04
Que. 1 : Q1) Under which basis where it is possible to determine the underwriting result of an insurance business written in an accounting period at the end of that period?
1. a) Annual Basis of accounting
2. b) Fund Basis of accounting
3.
4.
Que. 2 : Q2) Capital, drawings and individuals are examples of which account?
1. a) Personal accounts
2. b) Nominal accounts
3. c) Real accounts
4. d) None of these
Que. 3 : Q3) 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 Net Earnings Ratio?
1. a) 9.65%
2. b) 14.25%
3. c) 28.51%
4. d) 39.68%
Que. 4 : Q4) Which of the following concepts states that a business entity will not be closed down in the near future?
1. a) Money measurement concept
2. b) Going concern concept
3. c) Accounting cost concept
4. d) Realization concept
Que. 5 : Q5) Investment income, Rent and Commission are examples of which account?
1. a) Personal accounts
2. b) Nominal accounts
3. c) Real accounts
4. d) None of these