IC89 - MANAGEMENT ACCOUNTING-02

 25
Q1.Which of the following is an example of Profitability ratios?
   a) Cash ratio
   b) Operating ratio
   c) Global net premium
   d) Acid test ratio
 
Q2.Which of the following are the objectives of Disclosure?
  a) Providing insurance to the public at a fair price and non-discriminatory rates, terms, and conditions.
   b) Achieving transparency of operations resulting in building up market confidence in the insurance industry and its sustained growth
   c) Provide effective and efficient service to policyholders and claimants to achieve a high degree of consumer satisfaction.
   d) All of the above
 
Q3. To coordinate and line up the various functions of the Budget Committee in preparation of the budget and fixing budgetary limits for various heads or centers, there should be a responsible person called___ who will provide data and information to all functional centers.
   a) Agent
   b) Budget officer
   c) Manager
   d) Chief Operating officer
 
Q4.The difference between bid and offer is called as?
   a) Offer
   b) Spread
   c) Bid
   d) Budget
 
Q5.Name the Securities which is specified during the issuance of those securities and that rate remains unchanged during the entire tenor of those securities?
  a) Securities with Embedded Derivatives
  b) Securities with Fixed-Coupon rate
   c) Zero Coupon Rate
  d) Securities for either subscription are received or the repayment is made in installments.
 
Q6.How much percentage to funds as under Regulation.3(a) on the manner of investment of Life insurance Business on Government securities?
   a) 10%
   b) 15%
   c) Not less than 50%
   d) Not less than 25%
 
Q7.Which risk arises, when an otherwise profitable investment is impaired as a result of adverse legislation, harsh regulatory climate, or nationalization by a socialist government?
   a) Purchasing power risk
   b) Business risk
   c) Social or Regulatory risk
   d) Financial risk
 
Q8.Under which of the following methods of capital budgeting, rate of return is determined on the figures or data for income and investment derived from accounting statements?
  a) Payback method
   b) Rate of Return Original Investment Method
   c) Discounted Case Flow Method
   d) Internal Rate of Return (IRR) Method
 
Q9.Which deposits are covered by a guarantee from the Deposit Insurance and Credit Guarantee Corporation of India constituted under a Central Act, Which assures repayment of Rs.1-lac in case of default of payment?
   a) Company Fixed Deposit
   b) Bank Fixed Deposit
   c) Corporate Fixed Deposit
   d) Post Office Deposits
 
Q10.How is the capital turnover ratio calculated?
   a) Net sales / Working Capital
   b) Net sales / Fixed assets
   c) Net sales / Capital Employed
   d) Net sales / Total assets

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