Insurance Questions Daily-50

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 accounting sector.

Questions related to Principle and Practice of general Insurance. Insurance accounting and maintaining and managing accounting practices Risk Management and its applicability in the present industry, accounting terminology etc. on Insurance GK.

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Q-1- Which of the following represents an asset item?

1. Income prepaid
2. Income accrued
3. Expense prepaid
4. Expense accused

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Q-2- Which of the Statement is true in respect of Income and Expenditure account

I- This account is like the Profit and Loss account, forms an integral part of the accounts in a system of double-entry book-keeping

II- It is only a revenue account and includes revenue items only

III- This account includes the whole of the income and expenditure pertaining to the period covered, irrespective of whether actually received or paid or not.

1. I only
2. II only
3. III only
4. all I,II and III are true

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Q-3- Which of the Statement is true in respect of Receipt and Payment account

I- This account is simply a summary of cash transactions analyzed under suitable headings

II- All receipts and payments, whether on account of capital or revenue, are included in this account

III- Amounts reported here are confined to cash received and paid during the period without consideration of any outstanding receipts or payments

1. I only
2. II only
3. III only
4. all I,II and III are true

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Q-4- Which of the following statements is/are true ?

I- The trial balance is simply a list of all the ledger accounts and their respective balances at a specified point in time

II- Trial balance is not a part of Financial statements

III- Trial balance is not a part of Financial statements

1. I only
2. II only
3. III only
4. I&II only
5. I&III only

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Q-5- Which of the statements is/are correct?

I- Discount allowed, being an expense.. is always debited

II- Discount received, being an income… is always credited

III- Discount allowed, being an expense… Is always credited

1. I only
2. II only
3. I&II only
4. I,II&III only

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Q-6- Cash withdrawn from bank is recorded as a

I- Receipt in cash column

II- Payment in cash column

III- Receipt in the bank column

IV- Payment in the bank column

1. I only
2. I&II only
3. II&IV only
4. I&III only
5. I,II&III only

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Q-7- Cash deposited in the bank is recorded as a

1. Receipt in cash column
2. Receipt in the bank column
3. Payment in the cash column
4. Payment in the bank column

1. I only
2. I&II only
3. II&III only
4. I&III only
5. I,II&III only

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Q-8- The payment side of the cash book equals to

I- Debit of cash account

II-Credit of Cash account

III-Credit of bank account

1. I only
2. I&II only
3. II&III only
4. I& III only
5. I,II&III all

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Q-9- The receipt side of Cashbook equals to

I- Debit of cash account

II-Credit of cash account

III-Debit of bank account

1. I only
2. IIonly
3. I&II only
4. I&III only
5. I,II&III only

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Q-10- A general principle is that any transaction which cannot be recorded in the following books of original entry has to be recorded in Journal. The books are commonly known as?

I Sales day book

II- Purchase day book

III-Purchase return day book

IV-Petty cash book

1. I only
2. I&II only
3. I,II&III only
4. II,III&IV only
5. All of the above

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