IC26 Mock Test Sample 3
These questions cover accounting basics, insurance regulations, auditing, investments, and risk management. “Dr” stands for Debit. Auditors can typically serve up to 5 years as per IRDA norms. Conservation ratio measures policy retention. Provisions are amounts kept for known liabilities. Value Added Statement is a supplementary statement showing contribution to national income. IRDA regulates insurance after liberalisation. Insurance profits are computed as per the First Schedule of the Income Tax Act. Money laundering stages include placement, layering, and integration. Balanced funds suit moderate risk investors. Market risk arises from economic factors. Insurance companies must report suspicious transactions within specified timelines to authorities.
1. What does the abbreviation "Dr" stand for in accounting?
a) Debit
b) Drawings
c) Disbursement
d) Debit Receivable
e) Double Record
2. Maximum duration for auditor retention as per IRDA guidelines is:
a) 3 years
b) 4 years
c) 5 years
d) 6 years
e) 7 years
3. Conservation ratio helps to assess:
a) Average first premium
b) Conservation ratio
c) Sales mix ratio
d) Premium-to-Sum Assured ratio
e) Exit ratio
4. Policy stamps on hand at year end are:
a) Credited to Policy Stamps A/c
b) Written off as loss
c) Transferred to outstanding expenses
d) Debited to bank account
e) None of the above
5. Actuarial risk in defined contribution plans is:
a) Employee not receiving expected benefits
b) Investment losses borne by employee
c) Employer not contributing
d) Excess benefits risk
e) None of the above
6. Provision means:
a) Amount for known liabilities
b) Written off depreciation
c) Written off/retained for various purposes
d) Amount for contingent liabilities
e) Amount for renewals
7. Value Added Statement is:
a) Standalone statement
b) Supplementary financial statement
c) Retained profit statement
d) Operating expenses statement
e) Income statement
8. Insurance regulator after liberalisation is:
a) IRDA
b) LIC
c) SEBI
d) RBI
e) AMFI
9. Insurance profits under Income Tax Act Section 44 are computed as per:
a) Heads of income
b) Second Schedule rules
c) First Schedule rules
d) Insurance Act 1938 guidelines
e) Company discretion
10. Money laundering stage involving multiple transfers is:
a) Placement
b) Security
c) Integration
d) Layering
e) Small company transfer
11. Insurance Act 1938 requires audits:
a) Statutory + Internal
b) Statutory + Concurrent
c) Internal + Concurrent
d) All 1, 2 and 3
e) Only Statutory
12. Policy paying on death and survival is:
a) Endowment plan
b) Money back policy
c) Term insurance
d) Annuity
e) Whole life plan
13. First stage of money laundering is:
a) Speculation
b) Conversion
c) Placement
d) Integration
e) Layering
14. Bank reconciliation statement correct statements are:
a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
e) Both 1 and 3
15. Fund management expenses include:
a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
e) Both 2 and 3
16. Moderate risk investor should choose:
a) Bluechip equity funds
b) Debt funds
c) ELSS funds
d) Balanced funds
e) Money market funds
17. Suspicious transaction reporting time to FIU is:
a) 2 days
b) 7 days
c) 15 days
d) 30 days
e) 45 days
18. Risk due to economic factors is:
a) Default risk
b) Market risk
c) Liquidity risk
d) Capital risk
e) Concentration risk
19. Whole life policy incorrect statements are:
a) Only 2
b) Only 1
c) Both 1 and 2
d) Both 2 and 3
e) All 1, 2 and 3
20. NOT as per IRDA investment regulations is:
a) 35% limit rule
b) 15% housing & infrastructure
c) Not less than 25% in G-securities
d) Not less than 50% in G-securities
e) 50% including approved securities rule
