IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 09

Que. 1 : Q1) What is converted into liability or capital contribution or which results from disposal of an asset?

   1.  a) Capital expenditure

   2.  b) Revenue receipt

   3.  c) Revenue expenditure

   4.  d) Capital receipt

Que. 2 : Q2) As per Regulations 13 A of IRDAI(Investment) (Fifth Amendment) Regulations 2013, every Insurer shall draw up, annually an investment policy and place the same before the ________.

   1.  a) Shareholders

   2.  b) Board of Directors

   3.  c) Investment Committee

   4.  d) IRDAI

Que. 3 : Q3) Financial accounting methods followed by business houses depend on

   1.  a) The type of business

   2.  b) The statutes

   3.  c) Business laws applicable to them

   4.  d) All of the above

Que. 4 : Q4) Which method is suitable for the inventories where each unit of stock along with their associated cost can be separately identified and in other words where one unit of stock is not interchangeable with another unit, this method is followed?

   1.  a) Weighted Average method

   2.  b) FIFO(First In First Out)

   3.  c) Standard Cost method

   4.  d) Specific Identification Method

Que. 5 : Q5) ___________ is thus process of recording, classifying, summarising, analysing and interpreting financial transactions and communicating the results thereof to the interested parties.

   1.  a) Banking

   2.  b) Insurance

   3.  c) Management

   4.  d) Accounting