IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 07

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Que. 1 : Q1) A lease is classified as an ____________ if it does not transfer substantially all the risks and rewards incident to ownership.

   1.  a) Finance lease

   2.  b) Operating lease

   3.  

   4.  

Que. 2 : Q2) All transaction are not events but all events are transactions. Say whether True or False.

   1.  a) True

   2.  b) False

   3.  

   4.  

Que. 3 : Q3) The percentage commission paid by the reinsurers to the reinsurance brokers is relatively small in comparison to the commission paid to the insurance brokers. Say whether True or False.

   1.  a) True

   2.  b) False

   3.  

   4.  

Que. 4 : Q4) Which of the following is also known as scrap value or residual value?

   1.  a) Salvage value

   2.  b) Asset value

   3.  c) Depreciation value

   4.  d) Machinery value

Que. 5 : Q5) Provision of IBNR/IBNER is based on the advice of

   1.  a) Management

   2.  b) Actuary

   3.  c) Shareholders

   4.  d) Auditors