Financial Statements Analysis and Ratio Analysis MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Statements Analysis and Ratio Analysis, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Statements Analysis and Ratio Analysis MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Statements Analysis and Ratio Analysis mcq questions that explore various aspects of Financial Statements Analysis and Ratio Analysis problems. Each MCQ is crafted to challenge your understanding of Financial Statements Analysis and Ratio Analysis principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Statements Analysis and Ratio Analysis MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Statements Analysis and Ratio Analysis. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Statements Analysis and Ratio Analysis knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Statements Analysis and Ratio Analysis MCQs | Page 5 of 10

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Q41.
In the life insurance business, what is the typical ratio between shareholders' funds and policyholders' funds?
Discuss
Answer: (c).1:20 Explanation:In life insurance business, the typical ratio between shareholders' funds and policyholders' funds is generally 1:20.
Discuss
Answer: (b).In life insurance, insolvency affects policyholders much more than shareholders Explanation:In life insurance, insolvency affects policyholders much more than shareholders, making the regulator's test more rigorous.
Discuss
Answer: (b).The excess of assets over the value of liabilities Explanation:Available Solvency Margin (ASM) represents the excess of the value of assets over the value of liabilities in insurance business.
Q44.
Which form is used for the valuation of assets in the computation of Solvency Margin for insurers in India?
Discuss
Answer: (a).Form IRDA-Assets-AA Explanation:For the valuation of assets in the computation of Solvency Margin for insurers in India, Form IRDA-Assets-AA is used.
Q45.
In the determination of the amount of liabilities for insurers in India, which form is used for life insurance business?
Discuss
Answer: (c).Schedule IIA Explanation:In the determination of the amount of liabilities for life insurance business in India, Schedule IIA is used.
Q46.
For general insurance business in India, which form is used for the determination of the amount of liabilities?
Discuss
Answer: (b).Form HG Explanation:For general insurance business in India, Form HG is used for the determination of the amount of liabilities.
Q47.
Which statement is prepared for the determination of Solvency Margin for life insurance business in India?
Discuss
Answer: (c).Schedule 111-A Explanation:For the determination of Solvency Margin for life insurance business in India, a statement is prepared in accordance with Schedule 111-A.
Q48.
What specific requirement is for health business in the context of compliance in the computation of Solvency Margin for insurers in India?
Discuss
Answer: (b).Form KG Explanation:For compliance with specific requirements for health business in the computation of Solvency Margin for insurers in India, Form KG is used.
Q49.
What is the formula for determining Solvency Margin (SM) in a non-life insurance company?
Discuss
Answer: (c).SM = Excess of Policyholders' Fund + Excess of Shareholders' Fund Explanation:The formula for determining Solvency Margin (SM) in a non-life insurance company is SM = Excess of Policyholders' Fund + Excess of Shareholders' Fund.
Discuss
Answer: (a).RSM-1 = 20% of (Higher of Gross Premiums * Factor A and Net Premiums) Explanation:Required Solvency Margin based on net premiums (RSM-1) is calculated as 20% of the higher of (Gross Premiums * Factor A and Net Premiums).