What is the purpose of a Revenue Account in the context of general insurance companies?

To record general incomes and expenses for all types of businesses.

To record specific incomes and expenses for each type of insurance business.

To calculate the total profit or loss of the insurance company.

To maintain a record of shareholder investments.

What is the purpose of a Profit and Loss Appropriation Account in the final accounts of general insurance companies?

To record revenue from investments made by the insurance company.

To allocate profits for various purposes, such as dividends and reserves.

To calculate the overall profitability of the insurance company.

To maintain a record of expenses incurred during the year.

According to the IRDA Regulations, what is the primary purpose of preparing a Balance Sheet for a general insurance company?

To calculate the total premiums collected during the year.

To determine the distribution of profits among shareholders.

To provide a snapshot of the company's financial position.

To show the detailed breakdown of claims paid during the year.

How is the provision for unexpired risk calculated in the case of general insurance companies?

It is calculated as a fixed percentage of the company's net profit.

It is calculated as a percentage of the company's total expenses.

It is calculated as a percentage of the company's net premium income.

It is calculated based on the company's total claims paid during the year.

What is the purpose of a Receipts and Payments Account in the financial statements of a general insurance company?

To track the cash flows related to claims settlement.

To record all the premium payments received during the year.

To provide a summary of all financial transactions during the year.

To calculate the company's overall revenue and expenses.

What is the significance of the Revenue Account in the context of general insurance companies?

It calculates the total profit or loss of the company's operations.

It shows the allocation of profits among different stakeholders.

It records the expenses related to claims settlements.

It provides insight into the profitability of different types of insurance businesses.

What does "significant influence" mean in the context of associate companies for a general insurance company?

Holding more than 50% of the shares of the associate company.

Exercising control over the associate company's financial policies.

Participating in the policy-making process of the associate company.

Owning a substantial portion of the associate company's assets.

What is the main purpose of creating a provision for unexpired risk in general insurance companies?

To cover potential losses from claims that are not yet reported.

To ensure compliance with tax regulations.

To allocate funds for marketing and promotion activities.

To cover the administrative expenses of the insurance company.

According to IRDA Regulations, how are interest, dividends, and rentals receivable from investments reported in the financial statements of a general insurance company?

They are reported net of income tax deductions.

They are reported as part of the claims expenses.

They are reported at their gross value.

They are reported as part of the general expenses.

How are claims intimated but not paid by the end of the financial year treated in the final accounts of a general insurance company?

They are considered as a reduction in claims expenses.

They are included as a liability in the Balance Sheet.

They are treated as unearned premium income.

They are offset against any surplus funds available.

Insurance Company Accounts - 1 Free MCQ Practice Test with Solutions

	Advanced Corporate Accounting 89 videos\|52 docs\|22 tests

	Advanced Corporate Accounting 89 videos\|52 docs\|22 tests

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