IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 25
| Q1.Which of the following occurs from avoiding impairment or proper depreciation of assets? |
| a) Incorrect expenses recognition |
| b) Understatement of outstand ing claims liability |
| c) Overstatement of Assets |
| d) Inappropriate revenue recognition |
| Q 2. The maximum amount beyond which a company is not allowed to raise funds by issue of shares is: |
| a) Issued Capital |
| b) Authorised Capital |
| c) Paid Capital |
| d) Subscribed Capital |
| Q3. What is called the revenue earned by the business from its core activity of selling products or offering services or from other sources? |
| a) Liability |
| b) Expense |
| c) Income |
| d) Asset |
| Q4.____ is used for preparing cash flow statements of an insurance company. |
| a) Percentage of completion method |
| b) Historical cost method |
| c) Direct method |
| d) Indirect method |
| Q5.What is determined with reference to the nature and volume of business operations and the incurred claims on such business operations? |
| a) Required solvency Margin |
| b) Available Solvency Margin |
| Q6.On the liability side which amount is deducted from the Called-up and Paid-Up Capital? |
| a) Calls in - Arrear |
| b) Unclaimed Dividend |
| c) Proposed Dividend |
| d) Interim Dividend |
| Q7.Under Which system, the premium, and losses are entered in the accounts according to the treaty criteria for the relevant accounting year without any break up of income and expenditure by year of occurrence or underwriting year? |
| a) Occurrence year system |
| b) Underwriting Year System |
| c) Accounting Year System |
| d) None of these |
| Q8.Does that mean the company into which a transferor company is amalgamated? |
| a) Transferor Company |
| b) Transferee Company |
| Q9.Accounting Standard AS 20 Deals with? |
| a) Related Party Disclosures |
| b) Accounting for investments |
| c) Accounting for the Effects of Change in Foreign Exchange Rates |
| d) Earning Per Share |
| Q10.Auditors shall express options on which of the following? |
| a) True and Fair view of the financial position |
| b) Selection of appropriate accounting policies by the insurer |
| c) Valuation of investments in accordance with provisions of the Companies Act and IRDA Regulations |
| d) All of the above |