MCQOPTIONS
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MCQOPTIONS
This section includes 143 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
LIC was nationalized in |
| A. | 1935 |
| B. | 1950 |
| C. | 1956 |
| D. | 1964 |
| Answer» D. 1964 | |
| 2. |
The principles of subrogation is applicable to |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | All of these |
| Answer» E. | |
| 3. |
When a policy matures on the death of the insured , it is expressed as: |
| A. | With profit policy |
| B. | without profit policy |
| C. | whole life policy |
| D. | None of these |
| Answer» D. None of these | |
| 4. |
Insurance Regulations and Development Authorities Act came to effect in : |
| A. | 1938 |
| B. | 1999 |
| C. | 2000 |
| D. | None of these |
| Answer» C. 2000 | |
| 5. |
Which of the following of an insurance company does not fall under Income from investments . |
| A. | Interest and dividend |
| B. | Profit on sale of investments |
| C. | Share transfer fees |
| D. | None of these |
| Answer» D. None of these | |
| 6. |
Which of the following of an insurance company is included in other asset |
| A. | Loan to director |
| B. | Agent s balance(dr) |
| C. | Advance tax paid |
| D. | None of these |
| Answer» C. Advance tax paid | |
| 7. |
In life insurance business , claims may arise on . |
| A. | death |
| B. | maturity |
| C. | death or maturity |
| D. | none of these |
| Answer» D. none of these | |
| 8. |
Surrender value is an expression that is used in case of . Insurance business . |
| A. | Life |
| B. | Marine |
| C. | Fire |
| D. | None of these |
| Answer» B. Marine | |
| 9. |
Reserve for unexpired risk is shown under : |
| A. | Reserves and surplu |
| B. | Current liabilities |
| C. | Provisions |
| D. | None of these |
| Answer» D. None of these | |
| 10. |
.. reserve is created to meet any loss due to natural calamity |
| A. | General reserve |
| B. | Special reserve |
| C. | Catastrophe reserve |
| D. | None of these |
| Answer» D. None of these | |
| 11. |
Life insurance is contract of . |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» B. Indemnity | |
| 12. |
Double insurance is common in . Insurance. |
| A. | Life |
| B. | Fire |
| C. | Marine |
| D. | None of these |
| Answer» B. Fire | |
| 13. |
General insurance is a contract of |
| A. | Guarantee |
| B. | Indemnity |
| C. | Profit |
| D. | None of these |
| Answer» C. Profit | |
| 14. |
Re insurance is generally found in . Insurance |
| A. | Fire |
| B. | Marine |
| C. | Life |
| D. | None of these |
| Answer» E. | |
| 15. |
To ascertain profit in life insurance business . Prepared. |
| A. | Revenue account |
| B. | Profit and Loss account |
| C. | Valuation balance sheet |
| D. | None of these |
| Answer» D. None of these | |
| 16. |
Commission of an insurance company is shown in schedule |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | None of these |
| Answer» B. 3 | |
| 17. |
.. of an insurance company are shown in schedule 9. |
| A. | Loan |
| B. | Fixed asset |
| C. | cash & bank balance |
| D. | None of these |
| Answer» B. Fixed asset | |
| 18. |
Insurance Act came into effect in .. |
| A. | 1938 |
| B. | 1956 |
| C. | 1949 |
| D. | None of these |
| Answer» B. 1956 | |
| 19. |
The agreement of insurance is called as |
| A. | Policy |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» B. Premium | |
| 20. |
The consideration in insurance for covering the risk is called . |
| A. | Claim |
| B. | Premium |
| C. | Annuity |
| D. | None of these |
| Answer» C. Annuity | |
| 21. |
. Is the party who undertakes the risk in insurance |
| A. | Insurer |
| B. | Assurer |
| C. | Underwriter |
| D. | All of these |
| Answer» E. | |
| 22. |
In . The insurer agrees to pay a certain sum of money to the Policyholder either on his death or a certain age, whichever is less. |
| A. | Fire insurance |
| B. | Marine insurance |
| C. | Burglary insurance |
| D. | Life insurance |
| Answer» E. | |
| 23. |
The party whose risk is covered in insurance is known as |
| A. | Insurer |
| B. | Insured |
| C. | Underwriter |
| D. | None of these |
| Answer» C. Underwriter | |
| 24. |
When a liability is assumed by a partner his capital account is ---------- |
| A. | Debited |
| B. | Credited |
| C. | deducted |
| D. | None of these |
| Answer» C. deducted | |
| 25. |
When a firm is dissolved, project or loss on realization is shared by the partner s in their ------------- ratio |
| A. | Profit sharing ratio |
| B. | Capital contribution |
| C. | Asset |
| D. | None of these |
| Answer» B. Capital contribution | |
| 26. |
When an unrecorded asset is taken over by one of the partners, his capital account is ---------------- |
| A. | Debited |
| B. | Credited |
| C. | Added |
| D. | None of these |
| Answer» B. Credited | |
| 27. |
In the event of dissolution of firm the partners personal assets are first used for payment of -------------- liabilities |
| A. | Firm s |
| B. | Outsiders |
| C. | External |
| D. | Personal |
| Answer» E. | |
| 28. |
The account opened to close the various assets and liabilities of the firm on dissolution is called ------------- account |
| A. | Revaluation |
| B. | Amalgamation |
| C. | Realization |
| D. | Reduction |
| Answer» D. Reduction | |
| 29. |
Goodwill appearing in the balance sheet at Rs. 10,000 proved to be valueless, is not to be recorded on the ------------------ side of realization account |
| A. | Debit |
| B. | Credit |
| C. | Both |
| D. | None of these |
| Answer» C. Both | |
| 30. |
On dissolution, partners loan, if any, will be paid --------- |
| A. | First |
| B. | Second |
| C. | Third |
| D. | Lastly |
| Answer» C. Third | |
| 31. |
On dissolution, all assets except cash are transferred to ----------- of realization account |
| A. | Debit |
| B. | Credit |
| C. | Both |
| D. | None of these |
| Answer» B. Credit | |
| 32. |
In the case of dissolution of the firm , the account opened for closing various items in the balance sheet is called ---------------- |
| A. | Deficiency account |
| B. | Revolution account |
| C. | Realization account |
| D. | None of these |
| Answer» D. None of these | |
| 33. |
If a partner takes over some assets for value on dissolution, realization account should be ----------- |
| A. | Debited |
| B. | Credited |
| C. | Both |
| D. | None of these |
| Answer» C. Both | |
| 34. |
The ------ has distinguished the dissolution of partnership from dissolution of firm . |
| A. | Companies act 1956 |
| B. | Banking regulation act 1949 |
| C. | Indian partnership act 1932 |
| D. | Insurance act 1938 |
| Answer» D. Insurance act 1938 | |
| 35. |
A partnership which can be dissolved at any time by giving notice to other partners is known as ------------------ |
| A. | Particular partnership |
| B. | Partnership at will |
| C. | General partnership |
| D. | None of these |
| Answer» C. General partnership | |
| 36. |
The nominal account prepared to close the account of business is -------------- |
| A. | Revaluation account |
| B. | Realization account |
| C. | Profit & Loss appropriation account |
| D. | None of these |
| Answer» C. Profit & Loss appropriation account | |
| 37. |
Liabilities to third parties are paid ------------- |
| A. | First |
| B. | Second |
| C. | Third |
| D. | Lastly |
| Answer» B. Second | |
| 38. |
Dissolution of a firm leads to |
| A. | Continuing of business with the remaining partners |
| B. | Closure of business |
| C. | Merger with another firm |
| D. | None of these |
| Answer» C. Merger with another firm | |
| 39. |
Amount advanced by partner over and above the capital is paid |
| A. | Before paying outside debts |
| B. | After paying outside debts |
| C. | Along with outside debts |
| D. | Last along with capital |
| Answer» C. Along with outside debts | |
| 40. |
Realization account is closed by transfer of profit/loss to |
| A. | Cash account |
| B. | Balance sheet |
| C. | Capital accounts |
| D. | Profit and loss account |
| Answer» D. Profit and loss account | |
| 41. |
Realization account Dr. To partner s capital a/c; this entry is recorded when |
| A. | Profit is transferred |
| B. | Unrecorded liability is discharged |
| C. | Asset taken over |
| D. | (a) and (b) |
| Answer» E. | |
| 42. |
Realization account Dr. To asset a/c, this entry is written |
| A. | To open the asset account |
| B. | To close the asset account |
| C. | To transfer the profit on asset account |
| D. | None of these |
| Answer» C. To transfer the profit on asset account | |
| 43. |
---------------- of the Indian Partnership Act, 1932 states that when the partnership between all the partners of a firm comes to an end, it is called dissolution of the firm |
| A. | Section 5 |
| B. | Section 39 |
| C. | Section 50 |
| D. | Section 93 |
| Answer» C. Section 50 | |
| 44. |
The account prepared to find out the stock as on the date of fire .. |
| A. | Trading a/c |
| B. | Stock a/c |
| C. | Memorandum trading a/c |
| D. | loss of stock a/c |
| Answer» D. loss of stock a/c | |
| 45. |
When the relation of partnership among different partners changes without affecting the entity of the firm it is called------ |
| A. | Dissolution of partnership |
| B. | Dissolution of firm |
| C. | Dissolved by mutual agreement |
| D. | Termination |
| Answer» B. Dissolution of firm | |
| 46. |
The claim lodged by the business to insurance company on happening the event |
| A. | Claim |
| B. | Loss of claim |
| C. | discharge |
| D. | insurance claim |
| Answer» E. | |
| 47. |
The insurance policy is less than the value of stock |
| A. | Double insurance |
| B. | re insurance |
| C. | under insurance |
| D. | over insurance |
| Answer» D. over insurance | |
| 48. |
The insurance claim due to loss of stock is reduced to the proportion that the policy value bears to the value of stock |
| A. | Average clause |
| B. | Minimum clause |
| C. | Maximum clause |
| D. | loss of profit clause |
| Answer» B. Minimum clause | |
| 49. |
When a fixed asset is destroyed ,the loss of such asset on the date of fire can be ascertained from |
| A. | record |
| B. | accountant |
| C. | books of accounts |
| D. | None of these |
| Answer» D. None of these | |
| 50. |
The insurance indemnifies the insured any loss of profit arising from interruption of the normal activity |
| A. | Loss of profit insurance |
| B. | full insurance |
| C. | total insurance |
| D. | fire insurance |
| Answer» B. full insurance | |