Q. Contract of Insurance is a contract between the trader and the insurance Company to -
✅ Correct Answer: (D)
Compensate the loss suffered by the trader
Accountancy 2 MCQs and Notes
Q. Consequential loss policy for fire insurance gives insurance againest -
✅ Correct Answer: (B)
Profit Loss
Q. Opening stock Rs. 25000, Purchases Rs. 125000, Sales Rs. 150000, Goods salvaged Rrs. 10000 and Gross Profit is 50% on cost, then the cost of the goods burnt by fire is -
✅ Correct Answer: (A)
Rs. 40000
Q. If indemnity period is six months, Standard turnover Rs. 30000, Annual trunover Rs. 75000, Turnover during indemnity period Rs. 12000, then short sales will amount to -
✅ Correct Answer: (C)
Rs. 18000
Q. Stock of goods destroyed by Fire Rs. 10000 Stock of goods salvaged Rs. 2000, Value of insurance policy Rs. 9000. There is an average clause in the policy, Then the Amount of claim is -
✅ Correct Answer: (C)
Rs. 7500
Q. Consequential loss policy indemnifies -
✅ Correct Answer: (B)
Revenue Losses
Q. The Average Clause in a loss of profit policy prortects the -
✅ Correct Answer: (B)
Insurer
Q. Fire insurance Provides cover for -
✅ Correct Answer: (A)
Tangible Assets
Q. According to hire purchase agreement Rs. 25000 is the down payment and Rs. 90000 is the total amount of three equal instalments inclusive of interest Rs. 15000. How much would be the cash price of the asset ?
✅ Correct Answer: (B)
Rs. 100000
Q. In case of Hire purchase, the depreciation is calculated on -
✅ Correct Answer: (C)
Cash price