IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 15
| Q1.What is the number of equity shares outstanding at the beginning of the period, adjusted by the number of equity shares bought back or issued during the period multiplied by the time-weighting factor? |
| a) Weighted average number of equity shares |
| b) St and ard cost method |
| c) Basic Earning Per Share |
| d) None of these |
| Q2.What is the amount spent by the business for running the day-to-day operations of the business, marketing expenses for selling of goods and services? |
| a) Liability |
| b) Asset |
| c) Income |
| d) Expense |
| Q3.It is assumed under which method that whatever is received first is issued first, which means, the stock leftover belongs to the latest purchases and the closing stock is valued at the rates for the equivalent units purchased at last? |
| a) Weighted Average method |
| b) FIFO(First In First Out) |
| c) Specific Identification Method |
| d) Standard Cost method |
| Q4.Which concept is also known as Revenue Recognition Concept? |
| a) Realization concept |
| b) Dual Aspect Concept |
| c) Accounting Cost Concept |
| d) Accrual concept |
| Q5.What requires that the financial statements are prepared in the same manner, period after period and there will not be any change in the accounting policy? |
| a) Prudence Principle |
| b) Periodicity principle |
| c) Principle of Consistency |
| d) Materiality principle |
| Q6.A profit commission of an ___ requires all figures for the same underwriting year, irrespective of the accounting year in which these are included, to be related back to the same year for the purpose of determining the profit of that underwriting year. |
| a) Accounting year basis |
| b) Underwriting year basis |
| Q7.Which of the following sections of the Act required that every insurer in respect of all insurance business shall prepare Balance Sheet, Profit, and Loss A/c and Revenue A/c? |
| a) Section 11 |
| b) Section 14 |
| c) Section 15 |
| d) Section 17 |
| Q8.Which method is recommended for a retail business or in the business where the inventory comprises of many items, the individual costs of which are not readily ascertainable? |
| a) Weighted Average method |
| b) Adjusted Selling Price Method |
| c) FIFO(First In First Out) |
| d) Standard Cost method |
| Q9.___ are the acquisition and disposal of long term assets and other investments not included cash equivalents. |
| a) Financing Activities |
| b) Investing Activities |
| c) Cash Equivalents |
| d) Operating activities |
| Q10.What is an activity that involves recording financial data from financial transactions relating to business operations in a systematic and chronological order? |
| a) Recording |
| b) Bookkeeping |
| c) Processing |
| d) Regulating |