IC26 Mock Test Sample 1

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1. What percent of total value outstanding remaining sub-standard is required to be made as a general provision?
a) 1%
b) 5%
c) 10%
d) 20%
e) 30%

2. ________ is a mutual fund scheme in which an investor can purchase or sell units at any time at the current NAV.
a) ELSS Scheme
b) Gilt scheme
c) Open ended scheme
d) Close ended scheme
e) Balanced scheme

3. In Life Insurance business, investments in Government Securities as per IRDAI regulations should be ________.
a) Not less than 10% of fund
b) Not less than 15% of fund
c) Not less than 25% of fund
d) Not less than 40% of fund
e) Not less than 50% of fund

4. Rohit falls ill after eating sweets and plans legal action. This relates to ________.
a) Accrual Concept
b) Prudence Concept
c) Claim Safety Concept
d) Consistency Concept
e) Going concern assumption

5. Compute NAV: Market Value = ₹300 Cr, Liabilities = ₹45 Cr, Units = 10 Cr
a) Rs. 25.50
b) Rs. 26.30
c) Rs. 30
d) Rs. 38
e) Rs. 32.80

6. In General Insurance, debt securities and redeemable preference shares are considered as ________.
a) Held at cost
b) Held to maturity
c) At amortised cost
d) At fair value
e) Held at sale value

7. It is ________ for insurance companies to comply with ICAI accounting standards.
a) Obligatory
b) Preferred
c) Mandatory
d) Recommended
e) Not necessary

8. Capital Structure ratios focus on the ________ position of business.
a) Long term capital appreciation
b) Long term solvency
c) Short term solvency
d) Long term debt
e) Short term debt

9. While identifying geographical segments, factors include:
a) Nature of production processes
b) Nature of products/services
c) Distribution procedures
d) Exchange control regulations
e) Class of customers

10. Primary purpose of collecting KYC information is:

1. Identify good and bad customers
2. Legal requirement & relationship
3. Investigation

a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
e) Both 2 and 3

11. Which schemes invest mainly in fixed income securities?
a) ELSS
b) Money Market
c) Balanced
d) Debt schemes
e) Gilt schemes

12. Gross Value Added is affected by:

1. Corporate tax
2. CSR activities
3. Advertisement

a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
e) All 1, 2 and 3

13. Mutual fund schemes investing in both equity and debt:
a) ELSS
b) Gilt schemes
c) Open ended schemes
d) Tax saving schemes
e) Balanced schemes

14. Loan Against Policy depends on:
a) Policyholder’s age
b) Surrender value
c) Type of insurer
d) Duration of policy
e) All of the above

15. Deduction under Section 80G includes:

1. Life insurance premium
2. Donations to approved institutions
3. Loan interest

a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
e) Both 2 and 3

16. Cash transaction in money laundering stage is called:
a) Placement
b) Layering
c) Siphoning
d) Integration
e) Black transaction

17. Bank Reconciliation Statement uses:

1. Bank column of cash book & cash column of bank book
2. Bank column of cash book & bank statement
3. Cash column of cash book & bank statement

a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 3
e) Both 1 and 2

18. Operating activities under AS 3 include:

1. Claim receipts from reinsurers
2. Loan to companies
3. Repayment of policy loan

a) Only 2
b) Only 2 and 3
c) Only 1 and 3
d) Only 1 and 2
e) All statements

19. Depreciation on revalued assets is disclosed in:
a) Balance Sheet
b) Master report
c) AOA
d) P&L A/c and Notes
e) Form 26AS

20. Average first premium per ₹1000 sum assured:
a) (Total FP / Total SA) × 1000
b) (Total FYP / Total SA) × 1000
c) (Total FP / Total SA) × 10
d) (Total SA / Total FP) × 1000
e) (Total FYP / Total SA) × 100

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