IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 09
| Q1.What is converted into liability or capital contribution or which results from the disposal of an asset? |
| a) Capital expenditure |
| b) Revenue receipt |
| c) Revenue expenditure |
| d) Capital receipt |
| 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 __. |
| a) Shareholders |
| b) Board of Directors |
| c) Investment Committee |
| d) IRDAI |
| Q3.Financial accounting methods followed by business houses depend on |
| a) The type of business |
| b) The statutes |
| c) Business laws applicable to them |
| d) All of the above |
| 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? |
| a) Weighted Average method |
| b) FIFO(First In First Out) |
| c) Standard Cost method |
| d) Specific Identification Method |
| Q5._____ is thus a process of recording, classifying, summarising, analyzing, and interpreting financial transactions and communicating the results thereof to the interested parties. |
| a) Banking |
| b) Insurance |
| c) Management |
| d) Accounting |
| Q6.Take the case of ABC Ltd. which issued 500000 shares of face value Re. 1 each at a premium of Rs 4. All the shareholders except one paid the application and allotment money. One shareholder holding 300 shares did not pay the call money and so his shares were forfeited by the company. The company will transfer the share premium received on this forfeiture of shares to ____. |
| Share Capital Account |
| Capital Reserve Account |
| Securities Premium Account |
| Investor Protection Account |
| Suspense Account |
| Q7.The equipment was bought by Neeta for Rs 70000. This equipment has a useful life of 5 years. The scrap value after 5 years will be Rs 3000. Calculate the netbook value after two years if depreciation is to be provided on the straight-line method. |
| Rs. 42,700 |
| Rs 43,000 |
| Rs 43,200 |
| Rs 43,900 |
| Rs 44,600 |
| Q8.Shivam Corporation purchased machinery of Rs.50,000 on 1 January 2011 and incurred installation charges of Rs.10,000. The depreciation is calculated at 10% on a straight-line basis. On 30 June 2013, the machinery was sold for Rs.42,500. If the depreciation is calculated by written down value method, the book value of the machinery on 30 June 2013 will be more by: |
| a) Rs.1,170 |
| b) Rs.3,000 |
| c) Rs.2,500 |
| d) Rs.2,430 |
| Q9.Which of the following are users of financial statements? |
| a) Financial analysts |
| b) Tax authorities |
| c) Shareholders |
| d) All of the above |
| Q10.What are prepared and submitted by the Branch Auditor or Statutory auditor keeping in view statutory, regulatory, and auditing standards? |
| a) Director reports |
| b) Finance Reports |
| c) Audit Reports |
| d) None of these |