IC46 GENERAL INSURANCE ACCOUNTS PREPARATION – 19

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Que. 1 : Q1) What refers to the expected time that the asset
will be productive for its expected purpose?

   1.  a) Useful Life

   2.  b) Salvage value

   3.  c) Asset Cost

   4.  d) Placed in Service

Que. 2 : Q2) Which of the following statements is incorrect?

   1.  a) Cash flow from operating activities
can be calculated by using the direct as well as the indirect method

   2.  b) An increase in assets in cash inflow
from investing activities

   3.  c) A decrease in liabilities in cash
outflow from investing activities

   4.  d) Depreciation should be added back to
the book profit so as to calculate the cash flow from operating activities
under the indirect method

Que. 3 : Q3) Which of the following are main objectives of
accounting?

   1.  a) Recording of financial transactions

   2.  b) Assessment and analysis of financial
health of the enterprise

   3.  c) Preparation of financial statement as
per the requirements of the relevant statutes

   4.  d) All of the above

Que. 4 : Q4) Which of the following are reasons for
differences in the balances between Cash Book and Pass Book?

   1.  a) Unpresented cheques

   2.  b) Standing order

   3.  c) Direct debits

   4.  d) All of the above

Que. 5 : Q5) PQR Company Ltd obtained a machine for
Rs.300000 with its useful life of 4 years on 01.04.2006. Replacement was to be
done after 4 years by setting up a Depreciation Fund. Interest rate is 4% p.a.
Calculate annual investment/ Sinking Fund?

   1.  a) Rs.50247

   2.  b) Rs.63648

   3.  c) Rs.70647

   4.  d) Rs.85248

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