1. Which market allows companies to raise money by offering equity shares to the public?
A. Money Market
B. Insurance Market
C. Capital Market
D. Mutual Funds Market
E. Banking Market
2. Who are considered as Key Management Personnel according to Accounting Standard 18?
A. Any person with a high position in the company
B. Individuals with significant influence over the enterprise
C. Persons responsible for planning, directing, and controlling the activities of the reporting enterprise
D. All employees in a managerial role
E. None of the above
3. What is the tax rate for total income exceeding Rs. 5,00,000/- but not exceeding Rs. 10,00,000/- for an individual resident Indian below 60 years of age?
A. 10%
B. 20%
C. 30%
D. 12%
E. None of the above
4. What is the purpose of the cash book in accounting?
A. To record all cash and bank transactions
B. To prepare financial statements
C. To serve as a ledger account for cash and bank transactions
D. To summarize journal entries
E. To record transactions in chronological order
5. What is the primary purpose of life insurance?
A. Provide financial assistance
B. Generate profits for the insurance company
C. Cover medical expenses
D. Offer tax relief to policyholders
E. Provide disability benefits
6. What is the main purpose of the Suspicious Transactions Reports in the context of financial institutions and insurance companies?
A. To monitor customer's investment portfolios
B. To track possible money laundering attempts
C. To identify potential policyholders
D. To report all transactions made in cash
E. To disclose customer information to third parties
7. What is the purpose of the Bank Reconciliation Statement?
A. To calculate bad debts
B. To record interest on securities
C. To reconcile differences between cash book and pass book
D. To determine the value of doubtful debts
E. To prepare financial statements
8. What is the purpose of the "Stamps on Hand (Postage, Receipt & Other Stamps) A/c" in insurance accounting?
A. To track agent performance
B. To record expenses for office equipment
C. To account for the year-end stock of postage and receipt stamps
D. To calculate employee salaries
E. None of the above
9. When should insurers submit their accounts to IRDA on a quarterly basis?
A. By 15th Nov
B. By 15th Feb of next year
C. By 30th Sept
D. By 15th Aug
E. By 15th May
10. What is the purpose of the renewal notice?
A. To inform about changes in registration mark
B. To provide details of renewal premium
C. To issue a new policy
D. To record changes in address
E. To compute premium adjustments
11. How should gains or losses on the curtailment or settlement of a defined benefit plan be recognized?
A. Recognize them immediately in the statement of profit and loss
B. Ignore them as they are immaterial
C. Recognize them as a liability
D. Deduct them from the employee's benefits
E. None of the above
12. Which activity in a Cash Flow Statement involves acquisition and disposal of long-term assets?
A. Operating activities
B. Investing activities
C. Financing activities
D. Cash flows
E. None of the above
13. What are the two operations involved in every transaction?
A. Receipt and payment
B. Purchase and sale
C. Debit and credit
D. Receipt and disbursement
E. Giver and receiver
14. When was the Life Insurance Corporation (LIC) established in India?
A. 1912
B. 1956
C. 1990
D. 1818
E. 154
15. What is the purpose of the Discounted Value of Premium Deposits?
A. To cover the first year premium
B. To cover the agent's commission
C. To hold insufficient subsequent premiums
D. To refund excess deposits
E. To provide a discount on advance premium payments
16. What does the canon of "achievement of Social and Economic effect" imply?
A. Tax system should be simple
B. Tax system should not encourage inefficient allocation
C. Tax system should reallocate resources for objectives
D. Tax collection cost should be low
E. Taxes should come from multiple sources
17. Why is it important for an insurance company to verify the source of funds of its customers?
A. To categorize risk level
B. To provide cover to high net worth individuals
C. To understand risks of customer and product profile
D. To establish database trustworthiness
E. To prevent money laundering
18. What are direct expenses related to unit-linked plans in insurance?
A. Marketing expenses
B. Fund management expenses
C. Salaries and bonuses
D. Insurance business expenses overall
E. Allocated expenses
19. What is the valuation method used for listed securities?
A. Fair value
B. Historical cost
C. Book value
D. Market value
E. Cost price
20. What is the estimated reduction in servicing cost per policy with e-insurance?
A. Less than Rs. 100 per annum
B. Rs. 600 per annum
C. Rs. 1000 per annum
D. Rs. 200 per annum
E. Rs. 500 per annum
