IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 23
| Q1.The tax to be charged to the Profit and Loss account is __ which includes current Tax plus Deferred Tax. |
| a) Tax expenses |
| b) Deferred Tax |
| c) Current Tax |
| d) None of these |
| Q2.A lease was acquired with a premium of Rs.3,00,000 on 01.04.2006 for 4 years only. Depreciation under annuity system at 4% p.a. interest is charged. Rupee 1 is present value over 4 years @ 4% p.a. Calculate annual depreciation under Annuity method? |
| a) Rs.45896 |
| b) Rs.63694 |
| c) Rs.75695 |
| d) Rs.82647 |
| Q3.Financial accounting is the process of identifying, measuring, classifying, recording, summarising, analyzing, interpreting, and reporting the financial performance and the financial position of the enterprise through financial statements. The process stated above is called _____. |
| a) Methods of Accounting |
| b) Accounting policies |
| c) Management policies |
| d) Accounting process |
| Q4.Under the revised Companies Act 2013, what is the basis of charging depreciation: |
| a) Rate of depreciation prescribed by Companies Act |
| b) Useful life of assets |
| c) 10 years presumed for furniture and fixture and 20 years for building |
| d) None of the above |
| Q 5. A trial balance is prepared in order to: |
| a) Confirm the arithmetical accuracy of the ledger accounts |
| b) help in locating errors |
| c) Provide a basis for preparing the final accounts/ financial statements |
| d) All of the above |
| Q 6. What is related to the receipt or collection of recoveries and when it is allowed to customers, the amount collected is shown in the cash or Bank column as the case may be on the debit side and the amount of discount allowed is shown in the Discount Column on the debit side? |
| a) Cash Discount Allowed |
| b) Cash Discount Received |
| Q7.Which Section of the Act lays down provisions regarding limits on expenses of management in the general insurance business. Rule 17E of the Insurance Rules, 1939, prescribes the various limits in detail? |
| a) Section 40 |
| b) Section 40A |
| c) Section 40B |
| d) Section 40C |
| Q 8.Contingent liabilities: |
| a) Are shown on the liabilities side of the balance sheet |
| b) Are shown in the notes to accounts |
| c) Are disclosed only in the director's report |
| d) Are neither recognized nor disclosed |
| Q9.Investment properties shall be accounted for as___. |
| a) Current investment |
| b) Short-term investment |
| c) Long-term investment |
| d) Either current investment or long-term investment |
| Q10.In foreign currency transactions, the assets and liabilities(including contingent liabilities) of the non-integral foreign operations, both monetary and non-monetary, are translated at ___. |
| a) The operating rate |
| b) The closing rate |
| c) The average rate |
| d) The economic rate |