IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 11
| Q1.Assuming the bank statement balance of Rs.40,000 to be correct, what should the cash book balance be? |
| a) Rs.79,000 overdrawn |
| b) Rs.6,000 overdrawn |
| c) Rs,.1,000 overdrawn |
| d) Rs.6,000 cash at bank |
| Q2.Which discloses the information regarding short term and long-term solvency of the concern. i.e. through the balance sheet, we can judge the financial status of an enterprise? |
| a) Profit and; Loss Account |
| b) Balance sheet |
| c) Cash flow statement |
| d) Notes and Schedules |
| Q3.What refers to an arrangement whereby two or more insurers enter into a single contract with the insured to cover a risk in agreed proportions at a specified premium? |
| a) Reinsurance |
| b) Co-insurance |
| c) Bancassurance |
| d) Joint assurance |
| Q4.From the above details, prepare a bank reconciliation statement as of 31st July 2011, and find out the balance as per the passbook. |
| a) Rs.1,50,000 balance |
| b) Rs.1,51,100 overdraft |
| c) Rs.1,51,100 balance |
| d) Rs.1,50,000 overdraft |
| Q5.Which principle aims at showing the state of affairs on an is basis; there should not be any attempt to make things look better or healthier than they actually are? |
| a) Prudence Principle |
| b) Periodicity principle |
| c) Principle of Consistency |
| d) Materiality principle |
| Q6.What are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value? |
| a) Cash flows |
| b) Operational activities |
| c) Fund flows |
| d) Cash Equivalents |
| Q7.Under which securities Government Securities, bonds, foreign govt. securities, debentures, etc., and in this type of scrip, the interest accrued from the date of the last payment to the date of the transaction is calculated? |
| a) Fixed-Income Bearing Securities |
| b) Variable income bearing securities |
| Q8.A separate cash book to record small transactions is called a _____. |
| a) Cashbook |
| b) Ledger |
| c) Petty cash book |
| d) Journal |
| Q9.According to which of the following accounting concepts/assumptions will sincerity, loyalty, and honesty of employees not be recorded in the books of accounts? |
| a) Business entity |
| b) Going concerned |
| c) Dual aspect |
| d) Money measurement |
| Q10.In reinsurance terms, a treaty condition stating that the insurer's loss must exceed a certain limit for the reinsurer to get involved is called ___. |
| a) Excess of loss |
| b) Quota share |
| c) Ceding |
| d) Pool arrangement |