IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 06
| Q1.For accounting and determination of value, the enterprise should do which of the following? |
| a) To account not only for its legal obligation under the formal terms but also for any other obligation that arises from the enterprise's informal practices |
| b) To use Projected Unit Credit Method to measure its obligations and related costs |
| c) To recognize immediately actuarial gains and losses in the statement of profit and loss as income or expense |
| d) All of the above |
| Q2.As per the IRDAI(Investment) (Fifth Amendment) Regulations 2013, every insurer carrying on general insurance business shall invest in Central Government Securities____. |
| a) Not less than 10% |
| b) Not less than 20% |
| c) Not less than 30% |
| d) Not less than 20% |
| Q3.Which represents the dividend received on the company's investments in shares and if it is shown in Trial Balance is the net dividend amount received by the company? |
| a) Interest received |
| b) Proposed dividend |
| c) Dividends received |
| d) None of these |
| Q4.The Fire Department of ABC General Insurance Co. Ltd gives the following details for 2009-10: i) Fire claims paid Rs.705 crore ii) Claims on Reinsurance Accepted Rs.144 crore iii) Claims on Reinsurance Ceded Rs.292 crore iv) Claims to outstand ing as on 01/04/2009 Rs.756 crore v) Claims to outstand ing as on 31/03/2010 Rs.800 crore. Calculate Claims Incurred Net, which has been shown in the Revenue Account for the year ended 31st March 2010. |
| a) 501 |
| b) 601 |
| c) 701 |
| d) 801 |
| Q5.Does that mean the company is amalgamated into another company? |
| a) Transferor Company |
| b) Transferee Company |
| Q6.Which book records sales on a daily basis? |
| a) Bank receipts daybook |
| b) Purchase daybook |
| c) Cashbook |
| d) Sales daybook |
| Q7.Tangible assets and intangible assets are the nature of which accounts? |
| a) Real accounts |
| b) Nominal accounts |
| c) Personal accounts |
| d) None of these |
| Q8.Which concept states that revenue from any business transaction should be included in the accounting records only when it is realized and here, revenue is said to have been realized when cash is received or the right to receive cash has been accrued on the sale of goods or services or both? |
| a) Dual Aspect Concept |
| b) Accounting Cost Concept |
| c) Realization concept |
| d) Accrual concept |
| Q9.A machine purchased for Rs.90000 on 01.04.2005 is expected to have a life of ten years. The estimated salvage/scrap value after the expiry of ten years is Rs.30,000. Depreciation is considered under the Straight Line Method. Calculate the rate of depreciation? |
| a) 6.66% p.a |
| b) 15.68% p.a |
| c) 22.26% p.a |
| d) 38.68% p.a |
| Q10.Under which level are all commercial, industrial, and other business enterprises, whose total turnover during the previous year exceeds Rs.40-lakhs but within the limit of Rs.50-CRS? |
| a) Level I Enterprises |
| b) Level II Enterprises |
| c) Level III Enterprises |
| d) None of these |