IC89 - MANAGEMENT ACCOUNTING-02
| Q1.Which of the following is an example of Profitability ratios? |
| a) Cash ratio |
| b) Operating ratio |
| c) Global net premium |
| d) Acid test ratio |
| Q2.Which of the following are the objectives of Disclosure? |
| a) Providing insurance to the public at a fair price and non-discriminatory rates, terms, and conditions. |
| b) Achieving transparency of operations resulting in building up market confidence in the insurance industry and its sustained growth |
| c) Provide effective and efficient service to policyholders and claimants to achieve a high degree of consumer satisfaction. |
| d) All of the above |
| Q3. To coordinate and line up the various functions of the Budget Committee in preparation of the budget and fixing budgetary limits for various heads or centers, there should be a responsible person called___ who will provide data and information to all functional centers. |
| a) Agent |
| b) Budget officer |
| c) Manager |
| d) Chief Operating officer |
| Q4.The difference between bid and offer is called as? |
| a) Offer |
| b) Spread |
| c) Bid |
| d) Budget |
| Q5.Name the Securities which is specified during the issuance of those securities and that rate remains unchanged during the entire tenor of those securities? |
| a) Securities with Embedded Derivatives |
| b) Securities with Fixed-Coupon rate |
| c) Zero Coupon Rate |
| d) Securities for either subscription are received or the repayment is made in installments. |
| Q6.How much percentage to funds as under Regulation.3(a) on the manner of investment of Life insurance Business on Government securities? |
| a) 10% |
| b) 15% |
| c) Not less than 50% |
| d) Not less than 25% |
| Q7.Which risk arises, when an otherwise profitable investment is impaired as a result of adverse legislation, harsh regulatory climate, or nationalization by a socialist government? |
| a) Purchasing power risk |
| b) Business risk |
| c) Social or Regulatory risk |
| d) Financial risk |
| Q8.Under which of the following methods of capital budgeting, rate of return is determined on the figures or data for income and investment derived from accounting statements? |
| a) Payback method |
| b) Rate of Return Original Investment Method |
| c) Discounted Case Flow Method |
| d) Internal Rate of Return (IRR) Method |
| Q9.Which deposits are covered by a guarantee from the Deposit Insurance and Credit Guarantee Corporation of India constituted under a Central Act, Which assures repayment of Rs.1-lac in case of default of payment? |
| a) Company Fixed Deposit |
| b) Bank Fixed Deposit |
| c) Corporate Fixed Deposit |
| d) Post Office Deposits |
| Q10.How is the capital turnover ratio calculated? |
| a) Net sales / Working Capital |
| b) Net sales / Fixed assets |
| c) Net sales / Capital Employed |
| d) Net sales / Total assets |