IC26 LIFE INSURANCE FINANCE -16

Q1.The annual value of a self-occupied property is calculated based on __ (as per Income Tax Act)
   It is considered as NIL
   on actual amount paid to acquire property
   the actual current market value
   the value as per municipal valuation
   the value as per indexation
 
Q2.On the liability side of the Balance Sheet, the proposed dividend is shown under the head ___.
   Loans
   Trade payables
   Provisions
   Profits
   Reserve and Surplus
 
Q3.Identify the correct statement(s) with respect to a journal. 1. The credits are recorded on the left side and debits on the right side in a journal 2. In a journal, the transactions are recorded in chronological order 3. Journalistic is basically a process of converting transactions into a debit/credit format
   Only 1
   Both 1 and 2
   Both 2 and 3
   Only 3
   All 1, 2 and 3
 
Q4.The following details are for a new business started by Mr. Zampa. >Cash Sales Rs 25000; Cash collected from Debtors Rs 90000; Bad debts Rs 2000; Debtors at year-end Rs 7000. What is the total sale during the year?
   Rs 124000
   Rs 122000
   Rs 115000
   Rs 120000
   Rs 113000
 
Q5.Describe an Endowment Insurance Plan.
  In an Endowment Insurance Plan, the insurance companies pay the life assured the fund value on the maturity of the plan and also the sum assured
  In an Endowment Insurance Plan, the insurance company makes lump-sum payments at specific time intervals during the plan to life assured
  In an Endowment Insurance Plan, the insurance companies pay back the premiums to the life assured at the end of the tenure with interest.
  In an Endowment Insurance Plan, the insurance company pays a lump sum amount on the death of the life assured during the policy period
  In an Endowment Insurance Plan, the insurance company pays the life assured the promised sum assured and accumulated bonuses, if any, at the end of the tenure of the plan
 
Q6.The advance deposit is a minimum amount that has to be paid by the proposer along with the ___.
   Proposal form
   Single premium
   Renewal premium
   Salary saving scheme premium
   First installment premium
 
Q7.A payment was made by cheque for Rs. 400 for insurance. This was mistakenly credited to Insurance Account and Debited to Cashbook. Which of these entries will be needed to correct it in the ledger accounts?
  Dr. Insurance A/c 800, Cr Cashbook 800
  Dr. Cashbook 400, Cr Insurance A/c 400
  Dr. Insurance A/c 400, Cr Cashbook 400
  Dr. Insurance A/c 800, Cr Suspense A/c 800
  Dr. Insurance A/c 400, Cr Suspense A/c 400
 
Q8.With the help of __, one can prepare the Bank Reconciliation Statement.
   Bank column of cash book and cash column of bank book
   Bank column of cash book and bank statement
   Cash column of cash book and bank statement
   Both 1 and 2
   Both 2 and 3
 
Q9.__ expenses are included in the expenses of management for an insurance company. 1. Depreciation 2. Medical fees 3. Remuneration to the auditor
   Only 2
   Only 3
   All 1, 2 and 3
   Only 1 and 2
   Only 1 and 3
 
Q10.Accounting Standard 5 (AS 5) should be applied in presenting profit and loss from - 1. Ordinary Activities 2. Prior period items 3. Extraordinary items
   Both 1 and 3
   Both 2 and 3
   Both 1 and 2
   Only 1
   All 1, 2 and 3

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