Quiznetik

Special Accounting | Set 1

1. General insurance policies are generally taken for

Correct : A. One year

2. When a policy matures on the death of the insured , it is expressed as:

Correct : C. whole life policy

3. In the revenue account bonus in reduction of premium is shown as

Correct : C. Expense

4. The fixed assets of an insurance company are shown in

Correct : D. None of these

5. Insurance Regulations and Development Authorities Act came to effect in :

Correct : B. 1999

6. Which of the following of an insurance company does not fall under ‘ Income from investments’.

Correct : C. Share transfer fees

7. Which of the following of an insurance company is included in other asset

Correct : B. Agent’s balance(dr)

8. Reserve for unexpired risk is shown under :

Correct : C. Provisions

9. In life insurance business , claims may arise on …………………….

Correct : C. death or maturity

10. Surrender value is an expression that is used in case of ………………. Insurance business .

Correct : A. Life

11. …………….. reserve is created to meet any loss due to natural calamity

Correct : C. Catastrophe reserve

12. Life insurance is contract of ………………………………….

Correct : A. Guarantee

13. General insurance is a contract of ………………………………

Correct : B. Indemnity

14. Double insurance is common in ……………………. Insurance.

Correct : A. Life

15. Re insurance is generally found in ………………. Insurance

Correct : D. None of these

16. Commission of an insurance company is shown in schedule

Correct : A. 2

17. To ascertain profit in life insurance business ………………. Prepared.

Correct : C. Valuation balance sheet

18. ……………….. of an insurance company are shown in schedule 9.

Correct : A. Loan

19. Insurance Act came into effect in ………………………………………..

Correct : A. 1938

20. The agreement of insurance is called as………

Correct : A. Policy

21. The consideration in insurance for covering the risk is called………….

Correct : B. Premium

22. ……………. Is the party who undertakes the risk in insurance

Correct : D. All of these

23. The party whose risk is covered in insurance is known as

Correct : B. Insured

24. In …………. The insurer agrees to pay a certain sum of money to the Policyholder either on his death or a certain age, whichever is less.

Correct : D. Life insurance

25. General insurance includes ………………………………………..

Correct : D. All of these

26. LIC was nationalized in …………………………………………

Correct : C. 1956

27. Insurance business in India is regulated by ……………………………..

Correct : B. IRDA

28. Under ………….. , the sum assured is given to the beneficiary only On death of policy holder

Correct : A. Whole life policy

29. ………………… is the amount payable to the insured on the happening of event.

Correct : C. Claim

30. An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called ………………..

Correct : B. Annuity

31. The amount given to the policy holder due to his liability of paying Further premium is called ………………………………..

Correct : C. Surrender value

32. ……………. Is an arrangement between two insurance companies whereby one transfers a part of risk to other .

Correct : A. Re insurance

33. Revenue account is also called …………………………………

Correct : B. Policy holders a/c

34. Valuation balance sheet is prepared by ………………… business

Correct : C. Life insurance

35. The commission earned by insurance companies from others for giving them business under re insurance is called ……………………

Correct : A. Commission on re insurance ceded

36. The commission given by insurance companies to others for receiving Business under re insurance is called ………………….

Correct : B. Commission on re insurance accepted

37. The profit and loss amount of general insurance companies are prepared in …………………………………..

Correct : C. Form B – PL

38. The principles of subrogation is applicable to ………………………

Correct : D. All of these

39. Fire insurance, marine insurance etc come under ………………………

Correct : B. General insurance

40. In life insurance investments are come under the schedule ………….

Correct : B. Schedule 8

41. A …………. Company should transfer 25% of its profit to a statutory Reserve

Correct : D. Banking company

42. Rebate on bill discounted is a ……………………… of the Banking company.

Correct : A. Liability

43. Banks are required to transfer …………………. Of their profit to a statutory reserve

Correct : A. 25%

44. Rebate on bills discounted is …………………………….

Correct : B. Income received in advance

45. Banking business in India is largely governed by the Banking Regulation Act……………………..

Correct : C. 1949

46. ………………… in India is largely governed by the Banking Regulation Act 1949 .

Correct : B. Banking business

47. Banking business in India is governed by the ……………….. Act.

Correct : D. Banking regulations

48. A banking company should transfer 25% of its profit to a …………….

Correct : C. Statutory Reserve

49. A ………………….. loan is payable on demand

Correct : B. Demand

50. Money at call and short notice is an ……………… of the banking company.

Correct : B. Asset

51. A demand loan is payable on ……………………………………..

Correct : A. Demand

52. Banks shown provision for income tax under the head ……………….

Correct : A. Other liabilitie

53. No profit and loss appropriation account is prepared in case of a…………… company.

Correct : C. Banking company

54. Banks are required to prepare final accounts for each ……….. year

Correct : A. Financial

55. A banking company required to prepare its profit & loss account according to ……………………… of the III schedule of the Banking Regulations Act.

Correct : B. Form B

56. Rebate on bills discounted is shown on the liability side of the ……….

Correct : C. Balance sheet

57. Revenue reserve means any reserve other than ……………. Reserve

Correct : B. Capital

58. A …………. Company required to prepare its balance sheet according To form A in the III schedule of the Banking Regulation Act

Correct : C. Banking companies

59. A banking company required to prepare final accounts according to …………………schedule of the Banking Regulation Act

Correct : A. III

60. A banking company required to prepare its ……………. According to Form B in the III schedule of the Banking Regulations Act

Correct : C. Profit & loss account

61. A banking company prepares its ……………….. according to Form A Of the Banking Regulations Act

Correct : C. Balance sheet

62. Section 5(1) b of Banking Regulations Act , 1949 deals with

Correct : A. Banking

63. Banking Regulations Act 1949 Section 17 deals with

Correct : D. Statutory reserve

64. Depreciation on bank property , directors fees , and auditors fees are examples of schedule………………………………..

Correct : D. 16

65. Assets which does not carry more than normal risk attach to business and no provision in required to be made against such assets are called

Correct : A. standard asset

66. The claim lodged by the business to …………………….. on happening the event is known as insurance claim

Correct : C. Insurance company

67. The account prepared to find out the stock as on the date of fire is known as ……………………………… trading accounts.

Correct : B. memorandum

68. The clause through which the insurance claim due to loss of stock is reduced to the proportion that the policy value is …………………………..

Correct : D. Average clause

69. The ………………………. Is less than the value of stock it is called under insurance?

Correct : D. Insurance policy

70. Insurance claim is a claim ……………………… by the insurance company

Correct : A. Lodged

71. Consequential loss policy is also known as ……………………….

Correct : B. loss of profit policy

72. It is ………………………….. to ascertain the value of stock as on the date of fire

Correct : C. very difficult

73. …………………….. is prepared to find out the stock as on the date of fire

Correct : D. memorandum trading account

74. ………………………. Is the difference between standard sales and actual sales of dislocated period

Correct : A. short sale

75. The turnover during that period in the twelve month immediately before the date of damage which corresponds with the indemnity period is called ……………………………….

Correct : B. standard turnover

76. Investment made to earn regular income

Correct : C. Trade Investments

77. The price quoted includes interest

Correct : A. cum interest

78. Ex – dividend quotation ………………………………

Correct : B. excluding dividend

79. In respect of government security the price quoted is usually

Correct : A. Ex- interest

80. Short term investments made out of idle cash are called

Correct : A. marketable securitie

81. Trade investment are investment made for ……………. Period

Correct : B. long period

82. Ex – interest means ……………………………..

Correct : C. Excluding interest

83. Cum – interest means ………………………………………

Correct : C. cumulative interest

84. Investment made for long period are called ……………………

Correct : C. Trade investment

85. ………………….. investment made for earning regular income

Correct : D. Trade investment

86. Investment in government debentures , bonds etc. come under ………

Correct : C. Fixed income bearing securities

87. A ledger maintained where separate investment account prepared for a particular scrip is known as ………………………..

Correct : A. investment ledger

88. When bonus share are received the average cost of the existing shares are …………………………….

Correct : A. Reduced

89. Bonus shares are issued by ……………….. free reserves

Correct : B. Capitalizing

90. Bonus shares are issued out of ……………………………………………….

Correct : B. free reserve

91. Right shares are issued to ………………….. share holders

Correct : B. existing

92. Investment account is ………………………. Account

Correct : C. Real

93. Sale of right is a ………………….. receipt in case of right issue

Correct : B. capital

94. Brokerage is ………… in the cost of investment in the books of Purchase of investment

Correct : A. Added

95. Interest accrued up to the date of sale of investments added to……………………………..Price.

Correct : A. Ex-interest

96. The cost of right share is ……………………………

Correct : A. added to the cost of investment

97. Long term investments are carried at ………………………..

Correct : B. cost price

98. Cost of investment includes ………….

Correct : D. All of the above

99. Short term investments are carried at …………………………………..

Correct : C. cost or market price which ever is less

100. ………… account is real account

Correct : D. Investments