IC26 LIFE INSURANCE FINANCE -21
| Q1.A trial balance is prepared in order to |
| a) Confirm the Arithmetical accuracy of the ledger accounts |
| b) Help to Locate Errors |
| c) Provide a basis for preparing the financial statements |
| d) For all above |
| Q2.Which of the following is the kind of a cash book? |
| a) Simple column cash book |
| b) Double-column cash book |
| c) Three-column cash book |
| d) All of the above |
| Q3.Which of the following errors will not be revealed by the Trial Balance? |
| a) Compensating Errors |
| b) Wrong Balancing of the account |
| c) Wrong Totalling of an account |
| d) All of the above |
| Q4.Under which of the following methods of depreciation on Fixed Assets, the annual amount of depreciation decrease? |
| a) Written Down Value method |
| b) Straight Line method |
| c) Annuity method |
| d) Insurance policy method |
| Q5.Posting Error contains |
| a) posting the wrong amount |
| b) omission to post either debit or credit |
| c) posting the wrong side of the correct ledger |
| d) All the above |
| Q6.A Diminishing Balance method of providing depreciation is one according to which |
| a) The amount on which depreciation is calculated is reduced year on year |
| b) The rate of Depreciation declines every year |
| c) Both rate and amount declines every year |
| d) All of the above |
| Q7.Journal is a book of _____. |
| a) Double Entry |
| b) Single Entry |
| c) Contra Entry |
| d) Original entry |
| Q8.Which Of the following is true for Unit Linked Health Insurance Policies (ULHIP)? |
| A. In case of death of the life assured before maturity, no sum assured is payable to the nominee or legal heir by the insurance company |
| B. In case of death of the life assured before maturity, the sum assured is payable to the nominee or legal heir by the insurance company. |
| C. In case of death of the life assured before maturity, sum assured and fund value is payable to the nominee or legal heir by the insurance company. |
| D. In case of death of the life assured before maturity, no fund value is payable to the nominee or legal heir by an insurance company. |
| Q9.Which of the following terms describes the division of large cash deposits into smaller amounts to avoid reporting requirements? |
| a) Purging |
| b) Integration |
| c) Smurfing |
| d) Placement |
| Q10.Smurfing means |
| a) a Large number of cash deposits into the same account |
| b) one voucher for a high-value deposit |
| c) Low-value denominations of cash |
| d) None of the above |
