Insurance Questions daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.
These 20 Insurance GK MCQs are all about Life and about the general insurance sector.
Questions related e-IA, accounting standards and practices followed by General Insurance companies, insurance, Clauses, widely used Formulas used etc. on Insurance GK.
InsuranceGK team also wishes to all Insurance aspirants for their daily learning with us. Keep learning with us !!
Don’t hesitate to reach us through our contact us page if you have any concerns about information available on the InsuranceGK portal.
Your valuable comments are our strengths.
Q-1- Financial accounting of an Insurance company required in compliance of
- IRDA
- Insurance Act 1938
- The Companies Act 1956
- Accounting standards by ICAI
- All of the above
Option-5 Financial accounting of an insurance company required in compliance of all of above.
Q-2- What AICPA stands for?
- All India Chartered Public accountants
- American Institute of Certified Public Accountants
- Association Institute of Certified Public Accountants
- None of the above
Option-2 AICPA stands for ‘American Institute of Certified Public Accountants’.The AICPA is the national professional organization of Certified Public Accountants in the United States, with more than 428,000 members in 130 countries in business and industry, public practice, government, education, student affiliates and international associates.
Q-3- In General insurance company profit or loss is recognized by preparing
- Trading account
- Revenue account
- Profit & Loss account
- Income and Expenditure account
Option-2 In General insurance company profit or loss is recognized by preparing of Revenue Account.
Q-4- In Insurance business major emphasis is made on
- Net worth
- Solvency
- Liquidity
- All of the above
Option-4 In insurance business major emphasis is made on Net worth, Solvency and Liquidity.
Q-5- The American Institute of Certified Public Accountants has regarded accounting as a
- Service activity
- Financial activity
- Operating activity
- Accounting activity
Option-1 The American Institute of Certified Public Accountants(AICPA) has regarded accounting as a ‘Service Activity’.
Q-6- In General insurance accounting in India, the scope of alternative treatment by different insurers has been reduced with the introduction of mandatory observance of IRDA regulations in regard to
- Determination of liability
- Valuation of investments and assets
- Recognition of income and expenditure
- All of the above
Option-4 All of the above are correct with regard to mandatory observance of IRDA regulations in India.
Q-7- Which regulation of IRDA provide for applicability of segment reporting as per AS 17 issued by ICAI
- IRDA(Preparation of financial statements and auditors report of insurance companies) Regulations 1999
- IRDA(Preparation of financial statements and auditors report of insurance companies) Regulations 2000
- IRDA(Preparation of financial statements and auditors report of insurance companies) Regulations 2001
- IRDA(Preparation of financial statements and auditors report of insurance companies) Regulations 2002
Option-4 IRDA(Preparation of financial statements and auditors report of insurance companies) Regulations 2002 provide applicability of segment reporting as per AS 17.
Q-8- ‘Standing charges’ refers to
- expenses which continue to accrue at their normal level despite of reduction in earning capacity
- expenses which can be discontinue by way of reduction in earning capacity
- expenses which can be control from their normal level by reducing or increasing in earning capacity
- None of the above
Option-1 Standing Charges are expenses which continue to accrue at their normal level despite of reduction in earning capacity.
Q-9- ‘Indemnity period’ is can also be referred as ‘Period of Insurance’
- False, both are different terms
- True, both are same and can be used as interchangeable
- Indemnity period is used in Life Insurance and Period of Insurance is used in General Insurance
- None of above
Option-1 Both are different terms.
Q-10- Gross Profit is
- Net Profit + Standing Charges
- Net Profit – Standing Charges
- Net Profit + Standing Charges + Tax
- Net Profit – Standing Charges + Tax
Option-1 Gross Profit is Net Profit + Standing Charges.