Insurance Claims(Advance Accountancy ) Questions and Answers

Question 1. A business takes a……………insurance policy to cover the claims for loss of stocks and loss of profit.
  1.    Fire
  2.    Life insurance
  3.    Car insurance
  4.    health insurance
Explanation:-
Answer: Option A. -> Fire


Question 2. The computation of loss by fire is very simple taken when a -------------- asset is destroyed
  1.    current
  2.    long-term
  3.    fire
  4.    intangible
Explanation:-
Answer: Option A. -> current


Question 3. The value of stock on the date of fire can be ascertained more precisely by preparation of a…………… Account
  1.    Trading A/c
  2.    memorandum transaction A/c
  3.    Balance sheet
  4.    P & L A/c
Explanation:-
Answer: Option B. -> memorandum transaction A/c


Question 4. ……………..clause is applicable in case of under insurance
  1.    average
  2.    Normal
  3.    short sales
  4.    indemnity period
Explanation:-
Answer: Option A. -> average


Question 5. ………………policy cover loss of gross profit sustained as a consequence of business interruption.
  1.    loss of profit
  2.    loss of stocks
  3.    average clause
  4.    loss of fixed assets
Explanation:-
Answer: Option A. -> loss of profit


Question 6. The period for which a policy is taken known ……………….as period
  1.    indemnity
  2.    short sales
  3.    long
  4.    fixed
Explanation:-
Answer: Option A. -> indemnity


Question 7. A ---------- policy covers loss of stock, fixed asset, profit, expenses etc.
  1.    compact
  2.    comprehensive
  3.    horizontal
  4.    operating
Explanation:-
Answer: Option B. -> comprehensive


Question 8. Insured standing charges are the --------------
  1.    fixed charges
  2.    horizontal charges
  3.    fluctuating
  4.    current charges
Explanation:-
Answer: Option A. -> fixed charges


Question 9. ……………… ratio indicates the relationship of gross profit to net sales in terms of percentage.
  1.    Gross profit
  2.    Net profit
  3.    debtors turnover
  4.    capital employed
Explanation:-
Answer: Option A. -> Gross profit


Question 10. Due to the inclusion of average clause in the fire insurance policy , an insured becomes a……………….in the event of under insurance.
  1.    co-insurer
  2.    provision
  3.    profit
  4.    loss
Explanation:-
Answer: Option A. -> co-insurer


© Lakshya_Education.com, All Right Reserved.
Contact Us services