IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 14
| Q1.Which section in the Companies Act 2013 would govern the contents and disclosures of the annual report of a company? |
| a) Section 136 |
| b) Section 140 |
| c) Section 208 |
| d) Section 217 |
| Q2.Which method is applied in the case of assets of wasting nature as well as to intangible assets like patents, copyrights, and Rate of depreciation per unit is determined by dividing total cost by expected number of output in contrast to a number of years? |
| a) Straight Line Method |
| b) Diminishing Balance Method |
| c) Depletion Method |
| d) Revaluation Method |
| Q3.Which of the following is a subsidiary book? |
| a) Claims paid account |
| b) Premium register |
| c) Bank account |
| d) Commission account |
| Q4.Which treaties are generally entered into to reinsure loss in respect of property claims and the retention and limit are decided separately for each risk insured by the primary insurer? |
| a) Per occurrence excess |
| b) Per Risk Excess Treaty |
| c) Aggregate excess |
| d) None of these |
| Q5.Which of the following form part of the Annual report of a general insurance company? (i) Financial statements (ii) Board Report (iii) Auditors report |
| a) (i) and (ii) |
| b) (i) and (iii) |
| c) (ii) and (iii) |
| d) (i) ,(ii) and (iii) |
| Q6.From the following information, calculate the amount of Net Claims Incurred for marine insurance: |
| a) Rs.17,000 |
| b) Rs.23,000 |
| c) Rs.26,000 |
| d) Rs.32,000 |
| Q7.What are the principal revenue-producing activities of a firm and other activities that are not investing of financing activities? |
| a) Financing Activities |
| b) Investing Activities |
| c) Cash Equivalents |
| d) Operating activities |
| Q8.What is related to cash payment to creditors and when it is received on making payment to creditors the net payment is shown in the Cash Column and the discount amount is shown in the Discount Column? |
| a) Cash Discount Allowed |
| b) Cash Discount Received |
| Q9.Which book records the return of goods sold? |
| a) Bills payable book |
| b) Sales return book |
| c) Purchase return book |
| d) Bank receipts daybook |
| Q10.What are assets held by an enterprise for earning income by way of dividends, interest, rentals for capital appreciation, or for other benefits to the enterprise? |
| a) Management |
| b) Accounting |
| c) Investments |
| d) Reinsurance |