IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 03

Q1.Profit on disposal of investment is:
   a) Credited to Investment A/c
   b) Credited to Revaluation Reserve
   c) Credited to Investment Fluctuation Fund
   d) Credited to Profit and Loss A/c
 
Q2.If the equipment account has a balance of Rs.45,000 and its accumulated depreciation account has a balance of Rs.28,000, the book value of the equipment will be:
   a) Rs.45,000
   b) Rs.28,000
   c) Rs.17,000
   d) Rs.73,000
 
Q3. Which book return of goods purchase?
   a) Purchase return book
   b) Sales return book
   c) Bills payable book
  d) Bank receipts daybook
 
Q4.Insurance accounting required compliance with the requirements of the Companies Act ____, the provisions of the Insurance Act ____, and the directives contained in the ___ Regulations.
   a) 1938,1956,AS
   b) 1956,2000,IFRS
   c) 1956,1938,IRDAI
   d) 1938,2002,ICAI
 
Q5.As per AS 13, what are assets which are held by an enterprise for earning income by way o interest, dividends, and rentals, for capital appreciation, or for other benefits to the investing enterprise?
   a) Fair value
   b) Investments
   c) Management
   d) Capital
 
Q6.Which method is also known as Sinking Fund Method?
   a) Depletion Method
   b) Annuity Method
   c) Revaluation Method
   d) Depreciation Fund Method
 
Q7.A machine purchase for Rs.1,00,000 on 01.04.2007 depreciated at 10% p.a. under Diminishing Balance Method. What is the value of the machine as of 01.04.2012?
   a) 24589
   b) 35698
   c) 45896
   d) 59049
 
Q8.Director Report of an insurance company is required to furnish which of the following information?
   a) The state of affairs of the company
   b) Audited Financial Statements
   c) Comparative Performance Analysis
   d) All of the above
 
Q9.From the above date, compute the following accounting ratios for analysis of financial statements vis-a-vis performance analysis for 2005-06 ABC General insurance company. Calculate Return on Net worth?
   a) 10.25%
   b) 20.09%
   c) 35.42%
   d) 48.36%
 
Q10.Accounting Standard AS 9 Deals with?
   a) Depreciation Accounting
   b) Construction Contracts
   c) Accounting for Fixed Assets
   d) Revenue Recognition

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