Advanced Financial Accounting MCQs [Dibrugarh University BCOM 5th SEM (2013 to 2022)]

Advanced Financial Accounting MCQs
Dibrugarh University BCOM 5^th SEM (2013 to 2022)
2022 (Nov / Dec)

In this post you will get Advanced Financial MCQs with Answers which are asked in Dibrugarh University BCOM 5th SEM Examination from 2013 to 2022.

Video of this post is avaialble below:

1. (a) Fill in the blanks:                       1x4=4

(1) Schedule-1 of banking companies deals with Capital.

(2) Life insurance business is carried on by Life Insurance Corporation of India since 1956.

(3) In case of fire insurance, the provision for unexpired risk is maintained at 50% of net premium.

(Note: In case of fire, accident and theft = 50%; Marine/Cargo= 100%)

(b) Write True or False:          1x4=4

(1) Substandard, doubtful and loss assets are types of non-performing assets.

Ans: True

(2) Life insurance contracts are contracts of indemnity.

Ans: False, Contract of Guarantee

(3) General insurance policies are normally issued for long terms.

Ans: False, one year

(4) Cum-dividend price is not the real price of investment.

Ans: True

2021 (Held in January/February, 2022)

1. (a) Write ‘True’ or ‘False’: 1x4=4

1) Banking companies are governed by the Banking Regulation Act, 1989.

Ans: False, 1949

2) Life insurance business is carried on by Life Insurance Corporation of India since 1956.

Ans: True

3) General insurance includes all types of insurances.

Ans: False, it includes all except life insurance contracts

4) Investments may be fixed or current asset.

Ans: True

(b) Fill in the blanks:   1x4=4

1) A banking company cannot grant loan to any of its Directors.

2) Valuation Balance Sheet is prepared to know surplus or deficiency of life insurance.

3) In case of marine insurance, the provision against unexpired risk is 100% of net premium.

Also Read: Multiple Choice Questions and Answers

- Advanced Financial Accounting MCQs 2023

- Accounts of Banking Companies MCQs

- Accounts of Life Insurance Companies MCQs

- Accounts of General Insurance Companies MCQs

- MCQ on Investment Accounting

- Advanced Financial MCQs (Dibrugarh University 2013 to 2023)

2019 (November)

1. (a) Fill in the blanks:           1x4=4

1)   As per the Finance Act, 2005, banks are allowed to issue preference shares.

2)   Life insurance business is carried on by Life Insurance Corporation of India since 1956.

3)   The general insurance business was taken over by the Central Government with effect from 1972.

4)   Cum-dividend price is not the real price of investment.

(b) State whether the following statements are True or False:                 1x4=4

1) Banks in India are under the general supervision of the Central Government.

Ans: False, RBI

2) Life insurance is more appropriate to be called life assurance.

Ans: True

3) Commission on re-insurance ceded is an income.

Ans: True

4) Only FIFO method is used to calculate cost of closing balance of investment.

Ans: False, fifo and average

2018 (November)

1. (a) Fill in the blanks:   1x4=4

1)   A Non-Performing asset is an asset that ceases to generate income for the bank.

2)   Consideration for annuities granted is a source of income for a life insurance company.

3)   In case of marine insurance, the provision against unexpired risk is maintained at 100 % of net premium.

4)   Investments are freely bought and sold in the stock exchange through banks and brokers.

(b) Write True or False:          1x4=4

1)   Rebate on bills discounted for a banking company is an income.            False, advance income

2)   Balance Sheet of a life insurance business is prepared in the prescribed from A-BS of the Insurance Act.  True

3)   Revenue Account of a general insurance company has five Schedules.   False, 4

4)   Brokerage is added in the cost of investment in the books of purchaser of investment.            True

(OLD COURSE)

1. (a) Fill in the blanks:  1x4=4

1)   Banks in India are under the general supervision of the RBI.

2)   In the contract of insurance, there are two parties namely the insurer and the insured.

(b) Write True or False: 1x4=4

1)   Rebate on bills discounted for a banking company is an income.            False, advance income

2)   General insurance includes all types of insurance.           false

3)   In an Investment Account, cum-interest means including accrued interest on an investment.  True

2017 (November)

1. (a) State whether the following statements are True or False:   1x4=4

1) Paid up capital of a banking company must be at least two-third of the subscribed capital of a banking company. False, one half

2) In the financial statements of insurance companies’ liabilities under the existing policies are determined by actuarial valuation in case of life insurance.  True

3) In case of marine insurance, the provision against unexpired risk is 50%.            False, 100%

4) Brokerage is added in the cost of investment in the books of purchaser of investment. True

(b) Fill in the blanks:  1x4=4

1) A banking company cannot grant loan to any of its directors.

2) Life insurance business is carried on by Life Insurance Corporation of India since 1956.

3) The general insurance business was taken over by the central Government with effect from 1972.

4) Sale of right is a capital receipt in case of right issue.

(Old course)

1. (a) Fill in the blanks:  1x4=4

a)   A non-performing asset is an asset that ceases to generate income for the bank.

b)   Revenue account of a life insurance business is prepared in the prescribed Form A - RA of the Insurance act.

c)    Investment Account is a real Account.

(b) Write True and False:                   1x4=4

b)   Banks show the provision for income tax under Provision and Contingencies.   False, other liabilities and provisions

c)    Life Assurance fund represents profit of the life insurance company.     False

d)   Only FIFO method is used to calculate cost of closing balance of investment.     False, fifo and average

2016 (November)

1. (a) Write True or False:      1x4=4

a)   Banking companies are governed by the Banking Regulations Act, 1949.                       TRUE

b)   Life Assurance Fund represents profit of the life insurance companies.              FALSE

c)    General insurance includes all types of insurance.                                                           FALSE

d)   Cum-dividend price is not the real price of investment.                                       TRUE  

(b) Fill in the blanks:   1x4=4

a)   A bank can open a branch only at the permission of the RBI.

b)   Consideration for annuities granted is a source of Fund for a life insurance company.

c)    In case of marine insurance, the provision against unexpired risk is maintained at 100% of the net premium.

d)   Investment Account is a real Account.

(Old Course)

1. (a) Choose the correct answer:                 1x5=5

a)   Rebate on Bills Discounted is an expired discount/unexpired discount.

b)   According to Insurance Regulatory and Development Authority (IRDA) Regulations, 2002, every general insurance company must prepare its Financial Statements as per Schedule B/C/D.

c)    When investments are sold at cum-interest, the amount of interest is deducted from/added to the quoted selling price.

(b) Fill in the blanks:   1x3=3

a)   In India, banking companies are governed by the Banking Regulation Act, 1949.

b)   As 13 deals with accounting for investments.

c)    As per the provisions of the IRDA Act, 2002, the Revenue Account of the life insurance companies is to be prepared as per Schedule A.

2015 (November)

1. (a) Choose the correct answer:                 1x3=3

a)   According to Sec. 17, every banking company shall transfer a sum equal to 20% / 22% / 25% of its net profits to a reserve fund as statutory reserve.

b)   In Life Insurance Business, interim dividends paid during the year are an appropriation / income / expenses.

c)    Accounting for investments is associated with AS-13 / AS-14 / AS-15.

(b) Fill in the blanks:   1x3=3

a)   As per RBI’s Prudential Accounting Norms, provision required to be made against the standard assets is @ 0.40%.             TRUE

b)   In case of ex-interest / ex-dividend sales of securities, quoted prices do not include accrued interest.

(OLD COURSE)

1. (a) Choose the correct answer:                 1x5=5

a)   Banking companies are governed by the Banking Regulation Act, 1949 / 1950 / 1951.

b)   Every General Insurance Company must prepare its Financial Statements as per Schedule B / C / D of the IRDA Regulation, 2002.

c)    Profit on sale of marketable securities is transferred to Profit and Loss Account / Capital Reserve.

d)   AS – 13 is associated with accounting for investments.

2014 (November)

1. (a) Choose the correct answer:                 1x3=3

(i)        As per RBI’s Prudential Accounting Norms, provision required for standard assets is @ 0.40% / @ 10% / @20%.

(ii)      Commission on reinsurance ceded deals with Schedule 2 / Schedule 3 / Schedule 4 in Revenue Account.

(iii)    Accounting for investments deals in AS-13 / AS-14 / AS-15.

(b) Fill in the blanks:  1x3=3

(i)        In current cost accounting method, depreciation is to be computed on the book value of fixed assets.

(ii)      In banking company’s final accounts, Schedule 12 is associated with contingent liabilities.

(iii)    Partly paid-up investments in an insurance company are considered as contingent liabilities.         

2013 (November)

1. (a) Choose the correct answer:                 1X3=3

a)        Revenue account of life insurance Act, A-RA/ A-PL / A-BS.

b)        A term loan is treated as non-performing asset (NPA), if interest in it remains unpaid for a period exceeding 90 days/ 100 days / 120 days

(b) Fill the blanks:       1X3=3

a)   The IRDA was set up in the year 1996.

b)   During the period of inflation, profits are reduced.

c)    Banking companies are governed by the Banking Regulation Act, 1949.

(c) Write true or false:           1X2=2

a)   In case of marine insurance, the provision against unexpired risks 100%.          True