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1795. Choose the correct statement(s)

Policy is an evidence of contract between the insurer and the insured
FPR signifies the commencement of the contract
A life insurance policy is subject to Indian Stamp Act
All of the above
✅ The correct answer is D.
In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.
An insurance contract commences when the life insurance company issues a first premium receipt (FPR). The FPR is the evidence that the policy contract has begun.
Any instrument mentioned in Schedule I to the Indian Stamp Act is chargeable to duty as prescribed in the schedule. These include affidavit, lease, memorandum and articles of company, bill of exchange, bond, mortgage, conveyance, receipt, debenture, share, insurance policy, partnership deed, proxy, share etc. The Government can reduce or remit whole or part of duties payable. So, all the statements are correct.

1797. The budget line is also known as the

Iso-utility curve
Production possibility line
Isoquant
Consumption possibility line
✅ The correct answer is D.
The budget line is also known as the Consumption possibility line. The CPF, or consumption–possibility frontier, is the budget constraint where participants in international trade can consume.

165. Bank Reconciliation statement is prepared by

Accountant of business
Manager of business
Controller of business
Accountant of the bank
✅ The correct answer is A.
Bank Reconciliation statement is prepared by Accountant of business. Bank reconciliation statement is generally prepared by the company accountant or the bookkeeper with the purpose to compare the bank’s records with your own company records. It is done on monthly basis whenever bank statement arrives.

1799. Cost accounting differs from financial accounting in respect of ________.

reporting of cost
ascertainment of cost
control of cost
recording of cost
✅ The correct answer is B.
Cost accounting differs from financial accounting in respect of ascertainment of cost. Cost Accounting refers to that branch of accounting which deals with costs incurred in the production of units of an organization. On the other hand, financial accounting refers to the accounting concerned with recording financial data of an organization, in order to exhibit exact position of the business.

166. Which of the following capital is taken up by the general public?

Issued capital
Subscribed capital
Authorized capital
Reserve capital
✅ The correct answer is A.
Issued capital is taken up by the general public. Such capital can be offered to the public at a later date. It is that part of subscribed capital, which is called by the company to pay on shares allotted. It is not necessary for the company to call for the entire amount on shares subscribed for by shareholders.
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