IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 12
| Q1.Which of the following is correct? |
| a) Assets = Liabilities + Capital |
| b) Assets = Liabilities - Capital |
| c) Assets = Liabilities * Capital |
| d) Assets = Liabilities / Capital |
| Q2.A change in an accounting policy that does not result from the initial application of an international standard must normally be accounted for: |
| a) Retrospectively |
| b) Prospectively |
| c) Either retrospectively or prospectively |
| d) Prospectively, unless it is impracticable to account for the impact of change |
| Q3.Which of the following should the statutory auditor examine? |
| a) The organization of the Internal Audit Department |
| b) The internal audit procedures |
| c) Points raised therein and the subsequent actions taken by management on the internal audit queries. |
| d) All of the above |
| Q4.What reflects the net financial result of the functioning of an enterprise during the last financial year in terms of net profit or net losses? |
| a) Cash flow statement |
| b) Balance sheet |
| c) Profit and Loss Account |
| d) Notes and Schedules |
| Q5.What means the process by which the employee is given the right to apply for the shares of the company in pursuance of the ESOS? |
| a) Debentures |
| b) Vesting |
| c) Bonus shares |
| d) None of these |
| Q6.Which of the following are golden rules of Real account? |
| a) Debit the Receiver, Credit the giver |
| b) Debit what comes in, Credit what goes out |
| c) Debit all expenses and losses, Credit all incomes, profits and gains |
| d) None of these |
| Q7.The sales return book is also known as ____. |
| a) Returns inward book |
| b) Returns indoor book |
| c) Returns outward book |
| d) Return outdoor book |
| Q8.The head of the Audit and Inspection Department at the Head Office should preferably: i) Be a professional ii) Be an employee of the company iii) Be a practicing professional iv) Report to the CEO v) Report to the chairman vi) Be a topper in the professional course vii) Be an experienced professional |
| a) (i) ,(ii) ,(iv) ,(vii) |
| b) (i) ,(iii) ,(v) and (vii) |
| c) (i) ,(v) ,(vii) |
| d) (i) ,(iii) ,(v) and (vii) |
| Q9.If the equipment account has a balance of Rs.70,000 and its accumulated depreciation account has a balance of Rs.38,000, the book value of the equipment will be: |
| a) Rs. 17,000 |
| b) Rs. 25,000 |
| c) Rs. 32,000 |
| d) Rs. 48,000 |
| Q10.What is something that the company owns and adds value to the company? Assets can generate revenue for the company or can be used for utility purposes? |
| a) Liability |
| b) Income |
| c) Expense |
| d) Asset |