IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 05
| Q1.Which concept assumes that all business transactions must be measurable in terms of money, that is, in the currency of a country, and in this concept, transactions that can be expressed in terms of money are recorded in the books of account? |
| a) Money Measurement concept |
| b) Going Concern Concept |
| c) Business Entity Concept |
| d) Accounting period Concept |
| Q2.Which book records commitments for bills accepted? |
| a) Bills receivable book |
| b) Purchase return book |
| c) Bills payable book |
| d) Sales return the book |
| Q3.A reinsurer reinsures with another reinsurer or insurance company such process of transfer is called ___. |
| a) Treaties |
| b) Excess of loss |
| c) Retrocession |
| d) Pool arrangement |
| Q4.What is a lease that transfers substantially all the risks and rewards incident to ownership of an asset? |
| a) Operating lease |
| b) Finance lease |
| c) Consideration lease |
| d) None of these |
| Q 5. Which investments are also known as marketable investments and they include investment in equity shares of a company? |
| a) Fixed-Income Bearing Securities |
| b) Variable income bearing securities |
| Q 6. The deficiency or surplus arising from retrospective recomputation of depreciation according to with the new method is adjusted in the accounts ____. |
| a) In the year of change of depreciation method |
| b) Retrospectively from the date of change relates to |
| c) Deferred prospectively over a period of 5 years |
| d) None of the above |
| Q7.As per the golden rules of accounting, from the below, which one is applicable to personal accounts? |
| a) Debit all expenses and losses and credit all incomes and gains |
| b) Debit what comes in and credit what goes out |
| c) Debit the receiver and credit the giver |
| d) Debit what goes out and credit what comes in |
| Q8.A ___ is created against that part of premium written which is attributable to the subsequent accounting periods. |
| a) Unearned premium and premium received in advance |
| b) Reserve for Unearned premium |
| c) Premium income |
| d) None of these |
| Q9.What includes Cashbook and Subsidiary Books or Day Books depending on the volume of the business such as Sales Day Book, Purchase Day Book, Return Inward Book, and Bills payable Book? |
| a) Journals |
| b) Ledgers |
| Q10.Ind AS 28 notified by MCA deals with: |
| a) Separate Financial Statements |
| b) Investments in Associates and Joint Ventures |
| c) Impairment of Assets |
| d) Borrowing Costs |