IC-89 Optional · Optional Life & General Insurance

Management Accounting — Mock Tests & Exam Prep

Management accounting — costing, budgeting and financial decision-making within an insurance organisation.

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307
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
40
Credit points

Try IC-89 free — 5 real questions

These are 5 of the 307 IC-89 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.

Question 1
Vanita wishes to understand the broad headings that appear in the Capital Account of BOP Account. Suggest her from the following options. I. Invisibles II. Foreign investments III. Merchandise
  1. AOnly II
  2. BI and II
  3. CI and III
  4. DII and III
  5. EI, II and III
Show answer & explanation

Answer: A. Only II

The capital account in the Balance of Payments (BOP) shows the net change in ownership of foreign assets and transactions in financial instruments. Banking capital, Loans and foreign investments can appear in the capital account of the BOP.

Question 2
___________ is not a source of raising capital through cross border transaction.
  1. AGDP
  2. BADR
  3. CFDI
  4. DGDR
  5. EECB
Show answer & explanation

Answer: A. GDP

In the global and open market, the available avenues or sources of funds have increased manifold. Cross-border capital can be raised in the form of FDI, FIi, ECB, ADR, GDR etc. Foreign Direct Investment (FDI), Foreign Institutional Investment (FIi) are two major routes for raising funds from foreign sources.

Question 3
All business activities such as purchase, production, storage, marketing, sales, delivery, accounting, investment payments etc. involves transactions and these transactions need to be planned, programmed, organized, managed, administered and manipulated with proper information system so as to manage the organization according to the corporate plans and targets. Which system can be suggested to coordinate all these transactions?
  1. ATransaction Processing System
  2. BDecision Support System
  3. CData processing System
  4. DManagement Information System
  5. ENone of the above
Show answer & explanation

Answer: A. Transaction Processing System

Transaction Process System (TPS) All business activities such as purchase, production, storage, marketing, sales, delivery, accounting, investment, payments etc. involves transactions and these transactions need to be planned, programmed organised, managed, administered and manipulated with proper information system so as to manage the organisation according to the corporate plans and targets. The systems related with the transactions are called Transaction Process System.

Question 4
Cross rate is the ______________________________________. difference between the offer and bid price rate at which dealer is willing to sell another currency
  1. Aprice at which the dealer is willing to buy another currency
  2. Bexchange rate which is expressed by a pair of currencies in which none of the
  3. Ccurrencies is the currency of the country
  4. Dthe rate at which currency of one country is exchanged for or converted into the currency of another country
Show answer & explanation

Answer: B. exchange rate which is expressed by a pair of currencies in which none of the

Cross rate refers to the Exchange Rate which is expressed by a pair of currencies in which none of the currencies is the currency of the country.

Question 5
The requirements of final accounts of companies are specified in which Schedule?
  1. ASchedule I
  2. BSchedule III
  3. CSchedule V
  4. DSchedule XIV
  5. ESchedule VI
Show answer & explanation

Answer: B. Schedule III

Schedule III of the Companies Act, 2013 provides the manner in which the company registered under the Act should prepare its ‘Balance Sheet’, ‘Statement of Profit and Loss’ and ‘notes’.

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Frequently asked questions

What is IC-89?
IC-89 (Management Accounting) is an optional Optional-level examination offered by the Insurance Institute of India (III). Management accounting — costing, budgeting and financial decision-making within an insurance organisation.
How many questions are in the IC-89 exam?
The IC-89 exam has 100 MCQs to be answered in 120 minutes (2 hours). All questions must be attempted — there is no negative marking.
What is the pass mark for IC-89?
You need to score at least 60% to pass IC-89. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-89 carry?
IC-89 carries 40 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-01
Principles of Insurance
IC-02
Practice of Life Insurance
IC-11
Practice of General Insurance
IC-22
Life Insurance Underwriting
IC-45
General Insurance Underwriting
IC-26
Life Insurance Finance

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