IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 26
| Q1.An item of income and expense can be shown in the Revenue Account of a Fire/ Marine Insurance Company as a separate line item only if: |
| a) It is in excess of 1% of the premium or Rs.50,000, whichever is higher |
| b) It is in excess of 1% of the premium or Rs.50,000, whichever is lower |
| c) It is in excess of 1% of the premium or Rs.5,00,000, whichever is higher |
| d) It is in excess of 1% of the premium or Rs.5,00,000, whichever is lower |
| Q2.Sukh-Sagar Ltd owns some land and buildings for which the following details are available |
| a) Rs.4,000 |
| b) Rs.4,090 |
| c) Rs.7,400 |
| d) Rs.7,500 |
| Q3.What is an activity that involves recording financial data from financial transactions relating to business operations in a systematic and chronological order? |
| a) Recording |
| b) Bookkeeping |
| c) Processing |
| d) Regulating |
| Q4.Which of the following statements relating to AS 2 is correct? |
| a) Inventory items are normally to be valued at the higher of cost and net realizable value |
| b) The Last In First Out method may be used to determine the cost of inventory |
| c) The First In First Out or weighted average method may be used to determine the cost of inventory |
| d) like - 2 deals with the method of physical verification of inventory |
| Q5. In accordance with the IRDAI circular prescribing agency and brokerage commission structure, the maximum agency commission or brokerage payable by any insurer is: |
| a) 5.0% |
| b) 10.0% |
| c) 17.5% |
| d) 20.0% |
| Q6.Returns of purchased goods are recorded in which book? |
| a) Returns inward book |
| b) Returns indoor book |
| c) Returns outdoor book |
| d) Returns outward book |
| Q7.The balance in Share Forfeited Account after the reissue of forfeited shares is transferred to: |
| a) General reserve a/c |
| b) Capital redemption reserve a/c |
| c) Capital reserve a/c |
| d) Revenue reserve a/c |
| Q8.Which concept states that the business entity and its owner(s) are two separate independent entities for the purpose of accounting and thus, business transactions and personal transactions of an owner of a business are separately entered in the business books of accounts and in personal books of record? |
| a) Money Measurement concept |
| b) Going Concern Concept |
| c) Business Entity Concept |
| d) Accounting period Concept |
| Q9.Under which section of the Act Public company means a company which a) is not a private company b) has a minimum paid-up share capital of five lakh rupees? |
| a) Section 2(45) |
| b) Section 2(56) |
| c) Section 2(71) |
| d) Section 2(79) |
| Q10.Which of the following are the main functions of accounting? |
| a) Forecasting and trend analysis |
| b) Accounting control |
| c) Providing data for decision-making |
| d) All of the above |