Deck 3: Banking and Insurance Accounting

Question 1

A demand loan is payable on ……………………………………..

A)Demand
B)At any time
C)after one yea
D)after six months

Answer 1

Demand

Question 2

Banks shown provision for income tax under the head ……………….

A)Other liabilitie
B)Contingent liabilities
C)Other liabilities and provisions
D)None of these

Answer 2

Other liabilitie

Question 3

No profit and loss appropriation account is prepared in case of a…………… company.

A)Co - operative society
B)Partnership
C)Banking company
D)None of these

Answer 3

Banking company

Question 4

Banks are required to prepare final accounts for each ……….. year

A)Financial
B)Calendar
C)Previous
D)None of these

Question 5

A banking company required to prepare its profit & loss account according to ……………………… of the III schedule of the Banking Regulations Act.

A)Form A
B)Form B
C)Form C
D)Form D

Question 6

Rebate on bills discounted is shown on the liability side of the ……….

A)Profit & loss a/c
B)Income statement
C)Balance sheet
D)None of these

Question 7

Revenue reserve means any reserve other than ……………. Reserve

A)General
B)Capital
C)Other reserve
D)None of these

Question 8

A …………. Company required to prepare its balance sheet according To form A in the III schedule of the Banking Regulation Act

A)Insurance company
B)Joint stock company
C)Banking companies
D)None of the above

Question 9

A banking company required to prepare its ……………. According to Form B in the III schedule of the Banking Regulations Act

A)Balance sheet
B)Profit & loss appropriations account
C)Profit & loss account
D)Position statement

Question 10

A banking company prepares its ……………….. according to Form A Of the Banking Regulations Act

A)Fund flow statement
B)Cash flow method
C)Balance sheet
D)Income statement

Question 11

Section 5(1) b of Banking Regulations Act , 1949 deals with

A)Banking
B)Insurance
C)Bills
D)Dividend

Question 12

Banking Regulations Act 1949 Section 17 deals with

A)General Reserve
B)Reserve fund
C)capital reserve
D)Statutory reserve

Question 13

Depreciation on bank property , directors fees , and auditors fees are examples of schedule………………………………..

A)13
B)14
C)15
D)16

Question 14

Assets which does not carry more than normal risk attach to business and no provision in required to be made against such assets are called

A)standard asset
B)substandard asset
C)Fixed asset
D)current asset

Question 15

The claim lodged by the business to …………………….. on happening the event is known as insurance claim

A)Banking company
B)Joint stock company
C)Insurance company
D)None of these

Question 16

The account prepared to find out the stock as on the date of fire is known as ……………………………… trading accounts.

A)statement
B)memorandum
C)consolidated
D)joint

Question 17

The clause through which the insurance claim due to loss of stock is reduced to the proportion that the policy value is …………………………..

A)Total clause
B)minimum clause
C)maximum clause
D)Average clause

Question 18

The ………………………. Is less than the value of stock it is called under insurance?

A)Endowment policy
B)Life policy
C)Accident policy
D)Insurance policy

Question 19

Insurance claim is a claim ……………………… by the insurance company

A)Lodged
B)Longed
C)Lounged
D)laughed

Question 20

Consequential loss policy is also known as ……………………….

A)Loss of cost policy
B)loss of profit policy
C)loss of Operation cost policy
D)loss of operating expenses policy

Question 21

It is ………………………….. to ascertain the value of stock as on the date of fire

A)very easy
B)not very easy
C)very difficult
D)not very difficult

Question 22

…………………….. is prepared to find out the stock as on the date of fire

A)Trading account
B)Profit and loss account
C)manufacturing account
D)memorandum trading account

Question 23

………………………. Is the difference between standard sales and actual sales of dislocated period

A)short sale
B)Total sales
C)gross sales
D)Net sales

Question 24

The turnover during that period in the twelve month immediately before the date of damage which corresponds with the indemnity period is called ……………………………….

A)Annual turnover
B)standard turnover
C)total turnover
D)Net turnover