IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 19

Que. 1 : Q1) What refers to the expected time that the asset will be productive for its expected purpose?

   1.  a) Useful Life

   2.  b) Salvage value

   3.  c) Asset Cost

   4.  d) Placed in Service

Que. 2 : Q2) Which of the following statements is incorrect?

   1.  a) Cash flow from operating activities can be calculated by using the direct as well as the indirect method

   2.  b) An increase in assets in cash inflow from investing activities

   3.  c) A decrease in liabilities in cash outflow from investing activities

   4.  d) Depreciation should be added back to the book profit so as to calculate the cash flow from operating activities under the indirect method

\Que. 3 : Q3) Which of the following are main objectives of accounting?

   1.  a) Recording of financial transactions

   2.  b) Assessment and analysis of financial health of the enterprise

   3.  c) Preparation of financial statement as per the requirements of the relevant statutes

   4.  d) All of the above

Que. 4 : Q4) Which of the following are reasons for differences in the balances between Cash Book and Pass Book?

   1.  a) Unpresented cheques

   2.  b) Standing order

   3.  c) Direct debits

   4.  d) All of the above

Que. 5 : Q5) PQR Company Ltd obtained a machine for Rs.300000 with its useful life of 4 years on 01.04.2006. Replacement was to be done after 4 years by setting up a Depreciation Fund. Interest rate is 4% p.a. Calculate annual investment/ Sinking Fund?

   1.  a) Rs.50247

   2.  b) Rs.63648

   3.  c) Rs.70647

   4.  d) Rs.85248