MCQ for CA Intermediate ACCOUNTING - Chapter 10 - INSURANCE CLAIMS FOR LOSS OF STOCK AND LOSS OF PROFIT

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 1 - ACCOUNTING - Chapter 10: INSURANCE CLAIMS FOR LOSS OF STOCK AND LOSS OF PROFIT - For Practice relevant for May/November 23 Examinations

 

Q1.  Goods costing ₹ 1,00,000 were insured for ₹ 50,000. Out of these goods, ¾ are destroyed by fire. The amount of claim with average clause will be

  1. ₹ 37,500.
  2. ₹ 50,000
  3. ₹ 75,000

Answer: 1

Q2.  Fire insurance claim will be limited to the

  1. actual loss suffered even though the insured value of the goods may be higher
  2. proportion of the loss as the insured value bears to the total cost. 
  3. both (a) and (b)).

Answer: 3

Q3.  The Loss of Profit Policy normally covers the following items:

  1. Loss of net profit and Standing charges
  2. Any increased cost of working e.g., renting of temporary premises.
  3. Both (a) and (b).

Answer: 

Q4. If the policy is without average clause, a claim for loss of profit will be (5)

  1. Sum insured.
  2. Higher of actual loss and sum insured
  3. Lower of actual loss and sum insured

Answer: 3

Q5. Gross profit can be calculated as(7)

  1. Net profit + Insured standing charges.
  2. Net profit - Insured standing charges.
  3. Net profit + standing charges.

Answer: 1

Q6. Amount of indemnity payable is(9)

  1. Gross Profit lost – Claim for increased cost of working Capital – Saving in Insured standing Charges.
  2. Gross Profit lost– Claim for increased cost of working Capital + Saving in Insured standing Charges.
  3. Gross Profit Lost +Claim for increased cost of working Capital – Saving in Insured standing Charges. 

Answer: 3

 

CA Intermediate ACCOUNTING - MCQ for Chapter 11 -   

To get back to the Chapterwise MCQ List Page       

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Inter Exams or who will be giving their CA Inter Exams in the near future.