IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 24

Que. 1 : Q1) Which book records cash transactions as well as transactions relating to bank?

   1.  a) Double column cash book

   2.  b) Simple Cash book

   3.  c) Triple column cash book

   4.  d) None of these

Que. 2 : Q2) Agreement requires reinsurance beyond the retention limit of the primary insurer is called as ___________.

   1.  a) Quota share

   2.  b) Surplus reinsurance

   3.  c) Facultative reinsurance

   4.  d) Treaty reinsurance

Que. 3 : Q3) The loss ratio is usually calculated as the percentage that incurred losses bear to earned premiums, as which of the following formula?

   1.  a) Incurred Losses + Earned Premiums * 100

   2.  b) Incurred Losses - Earned Premiums * 100

   3.  c) Incurred Losses * Earned Premiums * 100

   4.  d) Incurred Losses / Earned Premiums * 100

Que. 4 : Q4) Sanjay bought a machine for Rs.18,750. He paid for the new machine by taking out a loan of Rs.14,000 and trading in his old machine. The old machine originally cost Rs.10,500 and had been depreciated by Rs.6,148 at the time of the trade in. What is the gain on disposal of the old machine?

   1.  a) Rs.398

   2.  b) Rs.102

   3.  c) Rs.648

   4.  d) Rs.500

Que. 5 : Q5) It is a lease that is cancellable only:

   1.  a) upon the occurrence of some remote ocntingency

   2.  b) with the permission of the lessor

   3.  c) If the lessee enters into a new lease for the same or an equivalent asset with the same lessor

   4.  d) All of the above