Special Accounting solved MCQs

1 of 6

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 dividend

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 director

B. Agent’s balance(dr)

c. Advance tax paid

d. None of these

8. Reserve for unexpired risk is shown under :

a. Reserves and surplu

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

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

a. 1938

B. 1956

c. 1949

d. None of these

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

a. Policy

B. Premium

c. Annuity

d. None of these

21. The consideration in insurance for covering the risk iscalled………….

a. Claim

B. Premium

c. Annuity

d. None of these

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

a. Insurer

B. Assurer

c. Underwriter

d. All of these

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

a. Insurer

B. Insured

c. Underwriter

d. None of these

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.

a. Fire insurance

B. Marine insurance

c. Burglary insurance

d. Life insurance

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

a. Fire insurance

B. Marine insurance

c. Burglary insurance

d. All of these

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