IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 21
| Q1.Which book records cash transactions, transactions related to the bank as well as cash discount? |
| a) Double column cash book |
| b) Simple Cashbook |
| c) Triple column cash book |
| d) None of these |
| Q2.An Ltd. took over B Ltd. on April 01, 2014, and discharges consideration for the business as follows: 1) Issued 4,20,00 fully paid equity shares of Rs.10 each at par to the equity shareholders of B Ltd. 2) Issued fully paid up 15% preference shares of Rs.100 each to discharge the preference shareholders (Rs.1700,000) of B Ltd. at a premium of 10% 3) It is agreed that the 11% Debentures of B Ltd. (Rs.500000) will be converted into an equal number and amount of 13% Debentures of A Ltd. Calculate Purchase consideration. |
| a) Rs.40,50,000 |
| b) Rs.65,20,000 |
| c) Rs.60,70,000 |
| d) Rs.80,30,000 |
| Q3.Who among the following can sign the financial statements as per the Companies Act, 2013? (i) Chairperson, authorized by the board (ii) Company Secretary (iii) Managing Director |
| a) (i) and (ii) |
| b) (i) and (iii) |
| c) (ii) and (iii) |
| d) (i) ,(ii) and (iii) |
| Q4.Within ____ of the commencement of the financial year, every insurer shall file with Authority a photocopy of every reinsurance treaty slip and excess of loss cover note in respect of that year together with the list of reinsurers and their shares in the reinsurance arrangement. |
| a) 15 days |
| b) 30 days |
| c) 45 days |
| d) 60 days |
| Q5.Which of the following options contain the primary objective of internal audit? |
| a) Performing audit procedures so that the cost of a statutory audit can be minimized |
| b) Providing an opinion on the true and fair nature of financial statements |
| c) Identifying fraud |
| d) Identifying, analyzing, and evaluating risks, associated with management functions to realize the objectives of an organization |
| Q6.The accounting value of options granted under an Employee Stock Option Plan shall be: |
| a) Treated as shred issued on discount |
| b) Treated as employee compensation in the financial statements |
| c) Reduced from share premium account |
| d) Reduced from Share Capital Account |
| Q7.Which investments are also known as marketable investments? |
| a) Variable income bearing securities |
| b) Fixed-Income Bearing Securities |
| Q 8. What means repurchase by the company of its own shares. Such repurchase may take place either at par or premium or discount in compliance with the provisions of Sec.68 and Sec.69 of the Companies Act 2013? |
| a) Bank reconciliation statement |
| b) Buy-Back of Shares |
| c) Earnings per share |
| d) None of these |
| Q9.Which of the following is correct about Treaty Reinsurance? |
| a) Generally entered for short term and for a specified period of time |
| b) It is generally purchased to cover risks that are pre-determined and are out of the scope of the Primary Insurer |
| c) It is commonly purchased for large, unusual, or catastrophic risks |
| d) Under this, the reinsurance company is not under any obligation to provide reinsurance protection |
| Q10.In Financial Statements, which of the following shall be disclosed? |
| a) Segregation into performing/non performing investments for purpose of income recognition as per the directions, if any, issued by the Authority |
| b) Percentage of business sector-wise |
| c) Accounting Ratios as may be prescribed by the Authority |
| d) All of the above |