ASSOCIATE – IC26 LIFE INSURANCE FINANCE – 23

Que. 1 : Q1) The Fund Management Expenses incurred by Life Insurance Co. will be classified as which of the following?

   1.  a) Direct Expenses on a Traditional Policy

   2.  b) Indirect Expenses on a Traditional Policy

   3.  c) Direct Expenses on a ULIP

   4.  d) Indirect Expenses on a ULIP

Que. 2 : Q2) Errors that can’t be highlighted by preparing a trial balance

   1.  a) Error of omission to record

   2.  b) Error of commission

   3.  c) Error of Principle

   4.  d) Error of prime entry

Que. 3 : Q3) For Insurance Companies, Compliance with according standards issued by ICAI is:

   1.  a) A. Recommendatory

   2.  b) B. Mandatory

   3.  c) C. Not applicable since IRDA can issue their accounting standards

   4.  d) D. Approved by IRDA.

Que. 4 : Q4) Year in which income is taxable is known as______________ and year in which income is earned is known as____________

   1.  a) Previous year, Assessment year

   2.  b) Assessment year, Previous year

   3.  c) Assessment year, Assessment year

   4.  d) Previous year, Previous year

Que. 5 : Q5) Unexpired cost carried forward will be more under the following method of depreciation

   1.  a) Straight line method

   2.  b) Diminishing balance method

   3.  c) Sum of digits method

   4.  d) FIFO Method