IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 16

Que. 1 : Q1) Acquisition costs, if any, shall be expenses in the period in which they are incurred. Say whether True or False.

   1.  a) True

   2.  b) False

   3.  

   4.  

Que. 2 : Q2) Which of the following are purposes of investment of an insurance company?

   1.  a) To comply with the regulatory requirements

   2.  b) To meet any unforeseen contingences

   3.  c) To maintain solvency for payment of claims

   4.  d) All of the above

Que. 3 : Q3) Traditionally, an internal audit was a review on behalf of management to ensure that: i) Existing internal controls are adequate and effective ii) Review and analysis of risk management activities is done iii) Financial and operating information is relaiable iv) Review of corporate governance arrangements is done v) The laws and regulations and the policies of the management are complied with vi) Assets of the entity are safeguard

   1.  a) (i) ,(ii) ,(iii) ,(v)

   2.  b) (ii) ,(iv) ,(v) ,(vi)

   3.  c) (i) ,(iii) ,(v) ,(vi)

   4.  d) (i) ,(ii) ,(iii) ,(v) ,(vi)

Que. 4 : Q4) While closing the investment account, what does the difference in the cost column represent?

   1.  a) Revenue income

   2.  b) Profit or loss on sale of investment

   3.  c) Balance of the Investment A/c

   4.  d) None of the above

Que. 5 : Q5) A _______ is a book of accounts in which all day-to-day transactions are recorded in the order of their occurrence.

   1.  a) Cash book

   2.  b) Petty cash book

   3.  c) Ledger

   4.  d) Journal