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Accounts and Investment MCQ 2
Accounts and Investment MCQ 2
Q.1. The statutory requirement of solvency ratio for Non-life Ins. Companies is-
a. 1.75
b. 1.25
c. 1.50
d. 1.40
Q.4. Which statement is correct in relation to Investment guidelines of IRDA for General Insurance
Companies-
a. Investment in Central Government securities can not be less than 20% of total assets.
b. Investment in Central Government securities can not be less than 20% of total Premium for the year.
c. Investment in Central Government securities can not be less than 20% of total Investments
d. Investment in Central Government securities can not be less than 20% of total Share Capital
Q.5. As per IRDA Regulations on Investment which of the following area for investment has not been
prescribed –
a. Central Government Securities
b. Statement Government Securities
c. Investment in Infrastructure and Social Sector
d. Investment in Pension Funds
Q.6. Which one of the following is correct way of calculating ‘Incurred Claims’
a. Out standing claims at the beginning of the year plus Claims paid during the year minus claims
outstanding at the end of the year
b. Out standing claims at the end of the year plus Claims paid during the year minus claims outstanding
at the beginning of the year
c. Out standing claims at the end of the year plus outstanding claims at the beginning of the year minus
claims paid during the year
d. None of the above
Q.7. An insurance premium paid in the year 2006-07 for covering Company’s assets for the period
commencing from 1st April 2007 will be reflected in which of the following schedules attached to the
Balance Sheet-
a. Outstanding Expenses
b. IBNR Statement
c. Prepaid Expenses
d. Premium received in advance Schedule
Q.8. Company purchased a Water Cooler for Rs. 4,550/-. What will be rate of depreciation for this Water
Cooler –
a. 16%
b. 25.89%
c. 15%
d. 100%
Q.11 Following is not deducted from current assets to arrive at Quick assets
a. Income accrued on investment
b. Deposits with ceding companies
c. Short term deposits with banks
d. Prepayments
Q.12 Which of the following is not the utilization of funds but is a source of fund as per fund flow statement
a. Addition to Gross Block
b. Addition to Reserves and Surplus
c. Addition to Investment
d. Increase/Decrease in working capital
Q.15 Investment income is apportioned between shareholders fund and policyholder fund
a. Equally
b. In proportion to the closing balance of these funds at the end of the year
c. Not apportioned at all
d. In proportion to the opening balance of these funds at the beginning of the year
Q.17. Calculate the incurred claim from the following figures of fire claims for the financial 2006 - 07 of an
insurer:
Q.19.What is the Paid up Capital required for carrying on General Insurance business as per IRDA Guidelines:
a) Rs 125 corores
b) Rs 200 crores
c) Rs 100 crores
d) Rs 75 crores
Q.22.One of the following statements does not appear in the Annual Report of Insurance Company:
a) Profit & Loss Account.
b) Revenue Account of Fire, Marine & Misc.
c) Bank Reconciliation Statement.
d) Balance Sheet.
c) Professional CA s.
d) From GIC.
Q.24.Find out the statement, which does not appear in the Financial Statement of Company’s Annual Report:
a) Confirmation of validity of Registration certificate granted by IRDA.
b) Confirmation of having maintained Solvency Margin.
c) Age wise analysis of the claims of the previous years.
d) Region wise premium statement.
a) (i) Only
b) (ii) Only
c) (i) & (ii)
d) None of the above.
Q.27.What is the Maximum permissible amount Insurance Co. can invest outside Govt. related securities:
a) 55%
b) 50%
c) 60%
d) 45%
Q.29.A cheque issued but not presented for more than six months is reflected in
a. Collection account
b. Dishonoured cheque account
c. Stale cheque account
d. NOC account
Q.31.Claim occurring during the accounting year but lodged after 31 st March is the claim
Q.33.In premium collection account with the bank, the balance available (leaving the minimum amount) is
transferred on
a. Monthly basis
b. Fortnightly basis
c. Daily basis
d. Weekly basis
Q.34.Statutory Auditors for the Public Sector insurance companies are appointed by
a. RBI
b. C & AG
c. IRDA
d. Central Government
Q.38.Separate account for collection and payment is requirement under law for**
a. Each operating office
b. Each class of business
c. Each Divisional Office
d. Each Regional Office
Q.45.Investment income is a
a. Capital receipts
b. Revenue receipts
c. Miscellaneous receipts
d. Profit on sale of assets
Q.49.Recovery made towards Income Tax can be remitted to Income Tax Deptt.
a. On Annual basis
b. On half yearly basis
c. On quarterly basis
d. Monthly basis
Q.50.Premium Cheque receipted but lost in transit while banking. Action to be taken
a. Cancel the policy immediately
b. Continue with the policy as it is.
c. Cancel the policy immediately, Convince the party for a fresh cheque and issue a
fresh policy
d. None of the above
Q.55.Which of the following gives the correct formula for arriving at the operating surplus of a DO?
a) GDPI less Incurred claims less Commission less Reserve Strain less Management Expenses
b) GDPI less Incurred claims less Commission + (add) Reserve Strain less) Management Expenses
c) GDPI (-) less Incurred claims less Commission + (add) Reserve Gain – (less) Management Expenses
d) a &/or c
Q.56.In case a large Schedule Fire policy is underwritten by CD the following accounting entry has to be made
to underwrite the policy
a) Debit CD A/c and Credit Premium A/C
b) Credit CD A/c and debit Premium A/C
c) Debit CD A/c and Credit Bank A/C
d) None of the above
Q.57.To ensure that cash is deposited in the bank account the BO/DO accountant should
a) Verify and check the bank deposit slip every day
b) Verify the monthly bank reconciliation statement
c) Make necessary posting in the cash collection register
d) All the above
Q.58.Depreciation is charged on
a) Assets / capital expenditure
b) Expenses which are revenue in nature
c) Wages and salary
d) None of the above
Q.63.In case of an outstation premium cheque section 64 VB of the insurance act is complied from the time
a) The cheque is deposited in the bank
b) The cheque is received by the underwriting office
c) The cheque is posted by the insured through registered post
d) The cheque is cleared and credit is obtained in the bank account
Q.66. The statutory Auditors certify the insurance company balance sheet profit and loss accout in accordance
with the applicable provision of the
a) Insurance Act 1938
b) IRDA Act 1999
c) Companies Act 1958
d) All the above three Act
ANSWER