McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
A business takes a……………insurance policy to cover the claims for loss of stocks and loss of profit. |
| A. | Fire |
| B. | Life insurance |
| C. | Car insurance |
| D. | health insurance |
| Answer» A. Fire | |
| 2. |
The computation of loss by fire is very simple taken when a -------------- asset is destroyed |
| A. | current |
| B. | long-term |
| C. | fire |
| D. | intangible |
| Answer» A. current | |
| 3. |
The value of stock on the date of fire can be ascertained more precisely by preparation of a…………… Account |
| A. | Trading A/c |
| B. | memorandum transaction A/c |
| C. | Balance sheet |
| D. | P & L A/c |
| Answer» B. memorandum transaction A/c | |
| 4. |
……………..clause is applicable in case of under insurance |
| A. | average |
| B. | Normal |
| C. | short sales |
| D. | indemnity period |
| Answer» A. average | |
| 5. |
…………………policy cover loss of gross profit sustained as a consequence of business interruption. |
| A. | loss of profit |
| B. | loss of stocks |
| C. | average clause |
| D. | loss of fixed assets |
| Answer» A. loss of profit | |
| 6. |
The period for which a policy is taken known ……………….as period |
| A. | indemnity |
| B. | short sales |
| C. | long |
| D. | fixed |
| Answer» A. indemnity | |
| 7. |
A ---------- policy covers loss of stock, fixed asset, profit, expenses etc. |
| A. | compact |
| B. | comprehensive |
| C. | horizontal |
| D. | operating |
| Answer» B. comprehensive | |
| 8. |
Insured standing charges are the -------------- |
| A. | fixed charges |
| B. | horizontal charges |
| C. | fluctuating |
| D. | current charges |
| Answer» A. fixed charges | |
| 9. |
……………… ratio indicates the relationship of gross profit to net sales in terms of percentage. |
| A. | Gross profit |
| B. | Net profit |
| C. | debtors turnover |
| D. | capital employed |
| Answer» A. Gross profit | |
| 10. |
Due to the inclusion of average clause in the fire insurance policy , an insured becomes a……………….in the event of under insurance. |
| A. | co-insurer |
| B. | provision |
| C. | profit |
| D. | loss |
| Answer» A. co-insurer | |
| 11. |
The Insurance Company cannot prevent the happening of risk but provide for losses at the happening of risk. |
| A. | true |
| B. | false |
| C. | only a |
| D. | a and b |
| Answer» A. true | |
| 12. |
Insurance is a financial service for collecting the saving of the public and providing them with a risk of a coverage. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | a and b |
| Answer» A. true | |
| 13. |
A marine insurance policy is taken to cover the claims for loss of stock. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | both a and b |
| Answer» B. false | |
| 14. |
The amount paid by insured to insurer as a consideration is known as premium. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» A. true | |
| 15. |
General insurance business in India is transacted by Life Insurance Corporation of India. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» B. false | |
| 16. |
A memorandum trading account is to be prepared to ascertained the value of stock on the date of fire. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | may be false |
| Answer» A. true | |
| 17. |
A policy of fire insurance is intended to protect the assured against the loss caused by fire. |
| A. | true |
| B. | false |
| C. | neither true nor false |
| D. | may be false |
| Answer» A. true | |
| 18. |
Gross profit must always be calculated as a percentage on purchase . |
| A. | true |
| B. | false |
| C. | either true or false |
| D. | may be false |
| Answer» B. false | |
| 19. |
Average clause is applicable in case of under insurance. |
| A. | true |
| B. | false |
| C. | only true |
| D. | may be false |
| Answer» A. true | |
| 20. |
A fire policy covers loss of or damaged to insured property. |
| A. | true |
| B. | false |
| C. | may be true |
| D. | only false |
| Answer» A. true | |
| 21. |
If value of stock on date of fire is 429000, salvage is 1570000 then stock destroyed by fire will ……………… |
| A. | 271500 |
| B. | 270000 |
| C. | 275000 |
| D. | none of the above |
| Answer» A. 271500 | |
| 22. |
If value of stock on date of fire is 420000, salvage is 1500000 then stock destroyed by fire will ……………… |
| A. | 250000 |
| B. | 255000 |
| C. | 253000 |
| D. | 251000 |
| Answer» A. 250000 | |
| 23. |
If value of stock on date of fire is 420000, salvage is 10000 then stock destroyed by fire will ……………… |
| A. | 410000 |
| B. | 400000 |
| C. | 450000 |
| D. | 430000 |
| Answer» A. 410000 | |
| 24. |
If Gross profit is 600000, sales is Rs. 15,00,000 then gross profit ratio will be ………….. |
| A. | 40% |
| B. | 50% |
| C. | -40% |
| D. | – 50% |
| Answer» A. 40% | |
| 25. |
If Gross profit is 54000 and sales is Rs. 180000 then gross profit ratio will be …. |
| A. | 30% |
| B. | 45% |
| C. | 15% |
| D. | 25% |
| Answer» A. 30% | |
| 26. |
If Gross profit is Rs. 27000 and Sales Rs. 90000 then gross profit will be …….. |
| A. | 30% |
| B. | 25% |
| C. | 30% |
| D. | 30% |
| Answer» A. 30% | |
| 27. |
If Stock is 13500 for 90% then for 100% how much………. |
| A. | 15000 |
| B. | 14000 |
| C. | 13500 |
| D. | 15500 |
| Answer» A. 15000 | |
| 28. |
If stock is for 90----------15300 100 -------------? |
| A. | . 17000 |
| B. | 18000 |
| C. | 29000 |
| D. | 15500 |
| Answer» A. . 17000 | |
| 29. |
If stock is for 110----------------- 44000 100-------------------? |
| A. | . 40000 |
| B. | 50000 |
| C. | 55000 |
| D. | 45000 |
| Answer» A. . 40000 | |
| 30. |
If value of Insurance Policy is 21000, Stock on date of Fire is 24000 and Loss of stock is 20000 then Amount of Claim for stock will be …………… |
| A. | . 17500 |
| B. | 18000 |
| C. | 19000 |
| D. | 25000 |
| Answer» A. . 17500 | |
| 31. |
If value of Insurance Policy is 31500, Stock on date of Fire is 36000 and Loss of stock is 27000 then Amount of Claim for stock will be …………… |
| A. | .23625 |
| B. | 24625 |
| C. | 25625 |
| D. | 23525 |
| Answer» A. .23625 | |
| 32. |
If value of Insurance Policy is 63000, Stock on date of Fire is 72000 and Loss of stock is 54000 then Amount of Claim for stock will be …………… |
| A. | 47250 |
| B. | 48250 |
| C. | 26000 |
| D. | 25000 |
| Answer» A. 47250 | |
| 33. |
If Sales of last year is Rs. 600000 and sales of corresponding current year is Rs.200000 then Short sales will be …………… |
| A. | 400000 |
| B. | 500000 |
| C. | 250000 |
| D. | 256000 |
| Answer» A. 400000 | |
| 34. |
If Net Profit is Rs. 200000 Insured Standing Charges is Rs. 160000 Sales of The Previous year is Rs. 1800000 Then Gross Profit Rate will be………… |
| A. | . 20% |
| B. | 30% |
| C. | 40% |
| D. | 45% |
| Answer» A. . 20% | |
| 35. |
If Net Profit is Rs. 400000 Insured Standing Charges is Rs. 320000 Sales of The Previous year is Rs. 3600000 Then Gross Profit Rate will be………… |
| A. | . 20% |
| B. | 30% |
| C. | 50% |
| D. | 65% |
| Answer» A. . 20% | |
| 36. |
IF Gross profit rate is 20% and Short Sales is Rs. 400000, then Loss of Profit on Sales will be ……….. |
| A. | Rs. 80000 |
| B. | Rs. 50000 |
| C. | Rs. 85000 |
| D. | None of the above |
| Answer» A. Rs. 80000 | |
| 37. |
IF Gross profit rate is 40% and Short Sales is Rs. 250000, then Loss of Profit on Sales will be ……….. |
| A. | Rs. 100000 |
| B. | Rs. 50000 |
| C. | Rs. 85000 |
| D. | None of the above |
| Answer» A. Rs. 100000 | |
| 38. |
If Sales of last year is Rs. 450000 and sales of corresponding current year is Rs.200000 then Short sales will be …………… |
| A. | 250000 |
| B. | 500000 |
| C. | 250000 |
| D. | 256000 |
| Answer» A. 250000 | |
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