CORPORATE ACCOUNTING II - MULTIPILE CHOICE QUESTIONS
1) General insurance policies are generally taken for
a.One year
b. two year
c. three year
d. none of these
2) When a policy matures on the death of the insured , it is expressed
as:
a.With profit policy
b. without profit policy
c. whole life policy
d.None of these
3) In the revenue account bonus in reduction of premium is shown as :
a.Liability
b. Income
c. Expense
d. None of these
4) The fixed assets of an insurance company are shown in
a.Schedule 6
b. Schedule 7
c. Schedule 8
d. None of these
5) Insurance Regulations and Development Authorities Act came to effect in :
a.1938
b. 1999
c. 2000
d. None of these
6) Which of the following of an insurance company does not fall under
‘ Income from investments’.
a.Interest and dividends
b. Profit on sale of investments
c. Share transfer fees d. None of these
7) Which of the following of an insurance company is included in other asset
a. Loan to directors
b. Agent’s balance(dr)
c. Advance tax paid d. None of these
8) Reserve for unexpired risk is shown under :
a. Reserves and surplus
b. Current liabilities
c. Provisions
d. None of these
9) In life insurance business , claims may arise on …………………….
a. death
b. maturity
c. death or maturity
d. none of these
10) Surrender value is an expression that is used in case of ……………….
Insurance business .
a.Life
b. Marine
c. Fire
d. None of these
11) …………….. reserve is created to meet any loss due to natural calamity
a. General reserve
b. Special reserve
c. Catastrophe reserve
d. None of these
12) Life insurance is contract of ………………………………….
a. Guarantee
b. Indemnity
c. Profit
d. None of these
13) General insurance is a contract of ………………………………
a. Guarantee
b. Indemnity
c. Profit
d. None of these
14) Double insurance is common in ……………………. Insurance.
a. Life
b. Fire
c. Marine
d. None of these
15) Re insurance is generally found in ………………. Insurance
a. Fire
b. Marine
c. Life
d. None of these
16) Commission of an insurance company is shown in schedule
a. 2
b.3
c. 4
d. None of these
17) To ascertain profit in life insurance business ……………….
Prepared.
a.Revenue account
b. Profit and Loss account
c. Valuation balance sheet
d. None of these
18) ……………….. of an insurance company are shown in schedule 9.
a. Loan
b. Fixed asset
c. cash & bank balance
d. None of these
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