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Category: ASSOCIATE – IC26 LIFE INSURANCE FINANCE – 02

ASSOCIATE – IC26 LIFE INSURANCE FINANCE – 02

Que. 1 : Q1) What is Journal Entry

1.  a) ORIGINAL ENTRY   2.  b) DOUBLE ENTRY   3.  c) DUPLICATE ENTRY   4.  d) NONE

Que. 2 : Q2) Receivables outstanding at the beginning of the year were Rs.10,000. During the year, the following transaction occurred: * Credit Sales Rs.7,00,000 * Cash Sales Rs.1,00,000 * Prompt payment discounts given Rs.3,000 * Payment Rs.6,00,000 Then, What is the closing balance of receivables in the closing trial balance?

1.  a) Rs.107,000   2.  b) Rs.207,000   3.  c) Rs.210,000   4.  d) Rs.710,000

Que. 3 : Q3) Under________method the charge for depreciation for an accounting period is calculated in proportion of the remaining life of the asset at the beginning of every accounting period

1.  a) Reducing Balance Method   2.  b) Sum of Years Digit Method   3.  c) Double Declining Balance Method   4.  d) Straight Line Method

Que. 4 : Q4) Acid Test Ratio of a firm is given by

1.  a) Current Assets /Total Liabilities   2.  b) Current Assets – (Inventory+Prepaid Expenses) / Current Liabilities   3.  c) Total Assets / Total Liabilities   4.  d) Current Assets / Current Liabilities

Que. 5 : Q5) Cash Transactions above Rs.10 Lakh per month have to be reported FIU-IND by the insurance company by ________.

1.  a) A. 15th of Each Month   2.  b) B. 15th Next Following Month   3.  c) C. Every 15 Days   4.  d) D. Every Quarter end