IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 28
| Q1.What are short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value? |
| a) Cash flows |
| b) Operational activities |
| c) Fund flows |
| d) Cash Equivalents |
| Q2.Parmar Group of Industries, which has a calendar year accounting period purchased a new machine for Rs.1,50,000 on April 1, 2006. At that time Parmar Group of Industries expected to use the machine for nine years and then sell it for Rs.15,000. The machine was sold for Rs.85,000 on 30 September 2011. Assuming straight-line depreciation, no depreciation in the year of acquisitions, and a full year of depreciation of withdrawal, the gain to be recognized at the time of sale would be: |
| a) Rs.5,000 |
| b) Rs.10,000 |
| c) Rs.12,000 |
| d) Rs.15,000 |
| Q 3. A machine purchased for Rs.30000 on 01.04.2005 is expected to have a life of two years. The estimated salvage/scrap value after the expiry of two years is Rs.5,000. Depreciation is considered under the Straight Line Method. Calculate the rate of depreciation? |
| a) 35.62% p.a |
| b) 41.66% p.a |
| c) 58.26% p.a |
| d) 62.33% p.a |
| Q4. Provision of IBNR/IBNER is based on the advice of |
| a) Management |
| b) Actuary |
| c) Shareholders |
| d) Auditors |
| Q5.Which book records all receipts of cheques and deposits into banks where banking transactions are not recorded in the cash book? |
| a) Sales return the book |
| b) Purchase return book |
| c) Bills payable book |
| d) Bank receipts day book |
|
eport this Question? |
| Q6.Which of the following is a subsidiary book? |
| a) Claims paid account |
| b) Premium register |
| c) Bank account |
| d) Commission account |
| Q7.Company ABC paid Rs.1000 as telephone bill. What will be the accounting entry in this case? |
| a) Telephone account will be credited by Rs.1000 and company account will be debited by Rs.1000 |
| b) Telephone account will be debited by Rs.1000 and cash account will be credited by Rs.1000 |
| c) Cash account will be debited by Rs.1000 and telephone account will be credited by Rs.1000 |
| d) Cash account will be credited by Rs.1000 and company account will be debited by Rs.1000 |
| Q8.According to Section 68 OF Companies Act 2013, one of the conditions of the buyback is: |
| a) The buy-back is equal to or less than 25% of the total paid-up equity share capital and free reserves |
| b) The buy-back is more than 25% of the total paid-up equity share capital and free reserves |
| c) The buy-back is equal to or less than 10% of the total paid-up equity share capital and free reserves |
| d) The buy-back is more than 10% but less than 25% of the total paid-up equity share capital and free reserves |
| Q9.In Central Government Securities, the percentage of investment assets should be ___. |
| a) Not less than 10% |
| b) Not less than 20% |
| c) Not less than 30% |
| d) Not less than 40% |
| Q10.While auditing debt securities, in order to confirm the correctness of the valuation, the auditor confirms that securities have been measured. |
| a) At a historical cost less accumulated depreciation and impairment loss |
| b) At historical cost subject to amortization |
| c) At fair value as at the balance sheet date |
| d) At the historical cost |