IC26 LIFE INSURANCE FINANCE -10

Q1.Identify which of the below-listed activities are necessary for a budget: 1. Evaluation of the performance 2. Communication 3. Remedial action
   Only 2
   Only 3
   Both 1 and 2
   All 1,2 and 3
   Both 1 and 3
 
Q2.Based on IAS 17 which segments will be considered reportable if a company has three segments A, B, and C which account for 50%, 20%, and 8% of the total revenue respectively.
   Only A
   Only B
   Only C
  All A, B, and C
   Only A and B
 
Q3.Select which of the given statements hold true for a life insurance company? 1. The acquisition cost for acquiring new business will be expensed in the period in which they are incurred 2. The Cash flow statement has to be prepared only under indirect method 3. Segment reporting is applicable to all insurance companies
   Only statement 1 is correct
   Only statement 2 is correct
   Only statement 3 is correct
   Only statements 1 and 2 are correct
   Only statements 1 and 3 are correct
 
Q4.While recording a transaction the cost of goods purchased by cash was wrongly debited to the sales account and credited to the cash book. The rectification entry that needs to be passed is ____
  Dr. Purchase Account, Cr Sales Account
  Dr. Bank Account, Cr Cash Account
  Dr. Purchase Account, Cr Suspense Account
  Dr. Cashbook, Cr Sales Account
  Dr. Purchase Account, Cr Cashbook
 
Q5.Cash outflow arising from operating activities includes which of the following –
  Sale of properties that have been in possession for a long period
  Payments made to policyholders such as maturity claim
   Payment to buy debentures
  Payment to buy warrants, shares, etc.
  Loans are given to companies
 
Q6.While drawing the statement of cash flow, which of the following will be included under the head of financing activities? 1. The bonus paid to policyholders 2. Repayment of borrowings 3. Issue of share capital 4. Money received from the sale of investments
   Only 4
   Both 1 and 3
   Both 2 and 4
   Both 2 and 3
   Both 1 and 4
 
Q 7. The right definition of Liability ratio is :
  The ability to convert an asset to cash within a short time for a payout of short term liabilities
  The ability to convert an asset to cash within a short time for the payout of long term liabilities
  The ability to convert any cash to an asset within a long time for the payout of short term liabilities
  The ability to convert any cash to an asset within a short time for a payout of long term liabilities
  The ability to convert any cash to an asset within a short time to pay out of short term liabilities
 
Q 8. What are those mutual funds known as which invest a major portion of their money in Government Securities (G Secs) like Treasury Bills and/or Long Dated securities?
   Money market schemes
  Open-ended schemes
   Balanced schemes
   Debt schemes
   Gilt schemes
 
Q9.In a balance sheet, what refers to everything the entity owes to the owners/shareholders and this includes the initial capital contributed by the owners and the profits generated by the business.
   Equity
   Stake
   Gross Product
   Liabilities
   Assets
 
Q10.The 'Gross Value Added' (GVA) is affected by __.
   Corporate Social Responsibility (CSR) Activities
   The interest which is payable for the year
   Money spent on advertising
   Both 1 and 2
   Both 2 and 3

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