JAIIB Accounting and Finance for Bankers Mock Tests Set 1

A firm paid cartage of ?200 an account of transportation of newly purchased machinery to the cartage account. The error in the problem, would be called:


Options are :

  • Error of principle
  • Error of commission
  • Error of omission
  • Compensating error

Answer :Error of principle

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

After allotment of shares by a company when the allotment money is made due, it is debited to which of the following accounts:


Options are :

  • Share capital account
  • Share application account
  • Share allotment account
  • Bank account

Answer :Share allotment account

The closing stock given in the trial balance is transferred to which of the following accounts:


Options are :

  • Trading account
  • Profit and loss account
  • Manufacturing account
  • Balance sheet

Answer :Balance sheet

Which of the following is not an example of change in accounting policy?


Options are :

  • Change in method of providing depreciation on fixed assets.
  • Change in the method of providing inventory valuation.
  • Adopting double Entry system of accounting in place of Single Entry.
  • Change in method of valuation of Investments.

Answer :Adopting double Entry system of accounting in place of Single Entry.

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Patents right account is of the nature of


Options are :

  • Real account
  • Personal account
  • Nominal account
  • Intangible account

Answer :Real account

The ______________ serves the purpose for both identification of customer and also the address proof of customer.


Options are :

  • Officially Verified Document
  • Online Validated Document
  • Office Verified Document
  • Officially Valid Document

Answer :Officially Valid Document

Interpretation means 


Options are :

  • Explanation of meaning and significance of the data in Financial Statements.
  • Concerned with preparation and presentation of classified data
  • Systematic analysis of recorded data
  • Methodical classification of data given in Financial Statements.

Answer :Explanation of meaning and significance of the data in Financial Statements.

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

A  trader  purchases  goods  for  ?  2500000,  of  these  70%  of  goods  were  sold during  the  year.  At  the  end  of  31st  December  2009,  the  market  value  of  such  goods were  ?  500000.  But  the  trader  recorded  in  his  books  for  ?  750000.  Which  of  the following concept is violated.


Options are :

  • Money measurement
  • Conservatism
  • Consistency
  • None of these

Answer :Conservatism

E-KYC service is launched by -


Options are :

  • Unique Identification Authority of India (UIDAI)
  • Reserve Bank of India(RBI)
  • Ministry of Finance
  • SEBI

Answer :Unique Identification Authority of India (UIDAI)

If the machinery is sold for ?150000 at the end of 3rd year, what will be the profit or loss on sale of this machine?


Options are :

  • Profit ?10000
  • Profit ?20000
  • Loss ?20000
  • No profit no loss

Answer :Profit ?10000

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Current Assets ?6,00,000, Current Liabilities ?1,20,000, Credit Sales ?12,00,000, Cash Sales ?2,60,000, Sales Returns ?20,000.  Working Capital Turnover Ratio is ?


Options are :

  • 3 Times
  • 4 Times
  • 5 Times
  • 6 Times

Answer :3 Times

ABC Ltd. purchased a building by paying ? 50,00,000 as on 1st April, 2000. On 1st April, 2007 it found that it would cost ? 1, 50, 00,000 to purchase the similar building. This value of ? 1,50,00,000 is known as:


Options are :

  • Historical Cost
  • Realizable value
  • Current Cost
  • Present Cost

Answer :Current Cost

E-KYC is launched in order to -


Options are :

  • reduce the risk of identity fraud.
  • reduce document forgery.
  • promote paperless KYC verification.
  • All of the above

Answer :All of the above

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Freight expenses for moving new machinery to factory is


Options are :

  • Revenue expenses
  • Deferred revenue expenditure
  • Capital expenditure
  • None of the above

Answer :Capital expenditure

Historical cost concept requires the recording of an asset:


Options are :

  • At its Cost Value
  • At its Market value
  • At its Net Realisable value
  • At its Replacement cost

Answer :At its Cost Value

Which of the following will not affect Trial Balance


Options are :

  • Goods sold on credit not recorded in books.
  • Overstating of sales register.
  • Rent account credited instead of debit.
  • Salary debited to the extent � the amount.

Answer :Goods sold on credit not recorded in books.

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Journal records the transactions of the firm in a:


Options are :

  • Analytical manner
  • Chronological manner
  • Periodical manner
  • Summarized manner

Answer :Chronological manner

For an expense to be classified as revenue or capital depends on


Options are :

  • Kind of expense
  • Duration of the benefit of the expenditure
  • Effect on revenue earning capacity
  • All of the above

Answer :All of the above

Cost of goods sold is


Options are :

  • Opening stock + purchases + closing stock
  • Opening stock + purchases � closing stock
  • Opening stock � purchases + closing stock
  • None of above

Answer :Opening stock + purchases � closing stock

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Bank overdraft account is a:


Options are :

  • Personal account
  • Real account
  • Nominal account
  • Representative personal account

Answer :Personal account

Cost of replacement of defective parts of the machinery is


Options are :

  • Capital expenditure
  • Revenue expenditure
  • Deferred revenue expenditure
  • None

Answer :Revenue expenditure

Goods lost in transit is


Options are :

  • Nominal loss
  • Abnormal loss
  • Casual loss
  • Conditional loss

Answer :Nominal loss

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Noting charges are


Options are :

  • Paid to bank for dishonor
  • Paid to drawer for dishonor
  • Paid to notary public for recording dishonor
  • None of the above.

Answer :Paid to notary public for recording dishonor

Due to heavy flooding a truck carrying consignment goods sinks. This loss is called


Options are :

  • contingent loss
  • Nominal loss
  • Abnormal loss
  • Casual loss

Answer :Abnormal loss

A clerical error committed while posting, totaling or balancing of an account is


Options are :

  • Error of commission
  • Error of omission
  • Error of principle
  • Compensating error

Answer :Error of commission

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

Legal expenses incurred in connection with raising debenture loans is


Options are :

  • Capital Expenditure
  • Revenue Expenditure
  • Deferred Revenue Expenditure
  • None

Answer :Deferred Revenue Expenditure

The overhauling expenses of machines is...


Options are :

  • Capital Expenditure
  • Revenue Expenditure
  • Deferred Revenue Expenditure
  • None of the above

Answer :Revenue Expenditure

Accounts in personal names indicative of trusteeship capacity of a/c holders


Options are :

  • Can be opened after obtaining trust deed.
  • Can be opened after permission of zo.
  • Can be opened after permission of ho.
  • Should not be opened.

Answer :Should not be opened.

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

The statement given below is true/false? "While using E-KYC service of UIDAI, the individual user has to authorize the UIDAI, by explicit consent, to release his/her identity/address through biometric authentication to the bank branch."


Options are :

  • True
  • FALSE
  • Can't say
  • UIDAI is not a regulatory authority of E-KYC.

Answer :True

Expenditure incurred on issue of equity shares is


Options are :

  • Revenue expenditure
  • Capital expenditure
  • Deferred capital expenditure
  • None

Answer :Capital expenditure

Which of the following accounts is called valuation account or contra account (a)  provision for depreciation account (b) provision for doubtful debts account (c) stock reserve account (d) reserves and surpluses account:


Options are :

  • A to d all
  • A, b and c only
  • A, c and d only
  • B, c and d only

Answer :A, b and c only

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

At the end of the year, a ledger account has credit balance. The credit balance of the ledger is written as:


Options are :

  • "To Balance c/d" on the debit side
  • "By Balance c/d" on the credit side
  • "To Balance b/d" on the debit side
  • "To Balance b/d" on the credit side.

Answer :"To Balance c/d" on the debit side

When goods are sold on credit seller becomes a___ and buyer becomes a_____ .


Options are :

  • creditor , debtor
  • debtor , creditor
  • Lesser , Lessee
  • Bailor , Baillee
  • All of the above

Answer :creditor , debtor

Accommodation Bill is drawn without any


Options are :

  • consideration
  • accommodation.
  • acceptance
  • none consideration
  • None of the above

Answer :consideration

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A double columnar cash book has two columns on each side (which one is false


Options are :

  • One column is meant for cash and another for discount
  • The discount column on the debit side represents the discount allowed
  • The cash column on the credit side represents cash received
  • The discount column on the credit side means the discount allowed and cash column on the debit side means cash received.

Answer :The discount column on the credit side means the discount allowed and cash column on the debit side means cash received.

A bill drawn and accepted for mutual help is called a


Options are :

  • accommodation.
  • consideration
  • acceptance
  • none consideration
  • All of the above

Answer :accommodation.

Inability to pay the bills on due date. Inability to pay the bills on due date.   


Options are :

  • Insolvency
  • Bad debts
  • Creditor
  • Debtor
  • All of the above

Answer :Insolvency

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

When goods are sent on consignment debit is given to   


Options are :

  • Consignee's Account.
  • Consignment Account
  • Sales Account.
  • None of the above

Answer :Consignment Account

Which of the following parameters are generally considered to ensure that a loan proposal is technically feasible, economically viable and commercially acceptable?  I) Experience, competence and profile of the promoters of the units. II) Technical feasibility of the proposed unit. III) Guarantees and collateral securities offered. IV) reference from a current customer


Options are :

  • Only III
  • Only I,II,III
  • All of the above viz. I,II,III,IV
  • Only II

Answer :Only I,II,III

The person who purchases goods on hire purchase basis is called _________


Options are :

  • Hire Purchaser
  • Installment
  • Lease
  • Pre � Installment
  • All of the above

Answer :Hire Purchaser

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

In a business firm, the chief cashier hands over some cash to the petty cashier who submits the account of petty cash after a fixed time interval. This system is called (which is most appropriate):


Options are :

  • Petty cash system
  • Petty cash book system
  • Imprest system of petty cash book
  • Advance system of petty cash book

Answer :Imprest system of petty cash book

When there is one debit and several credits equal the debit amount OR there is one credit and several debits to match the amount of credit, this is called:


Options are :

  • Simple journal entry
  • Multiple journal entry
  • Compound journal entry
  • Aggregated journal entry

Answer :Compound journal entry

Depreciation is recorded in Debit side of profit and loss account. Depreciation is recorded in______ side of profit and loss account. Depreciation is recorded in Debit side of profit and loss account. Depreciation is recorded in Debit side of profit and loss account.


Options are :

  • Debit
  • Credit
  • receipt
  • Payment
  • None of the above

Answer :Debit

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Under _______ method of depreciation, the securities are sold and the proceeds are used for replacement of the asset.


Options are :

  • Sinking Fund
  • Written Down value
  • Revaluation Method
  • Sum of digit method
  • all of the above

Answer :Sinking Fund

(a) when goods are purchased, the 'purchases account' is used (b) when goods are sold, the 'sales account' is used (c) when goods are returned by the customers of  the firm, the 'returns outward' is used (d) when the goods are returned by the firm to its suppliers, the 'purchases returns' is used. Which is correct:


Options are :

  • a to d all
  • b, c and d
  • a, b and d
  • a, b and c

Answer :a, b and d

________ is the value of an established business over the above the value represented by its tangible assets. It is also the value attached to the super profit earning capacity of business arising from its wide connections, reputation and long standing in the business.


Options are :

  • Goodwill
  • Liabilities
  • Losses
  • All of the above

Answer :Goodwill

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

________of a partner means that a partner breaks off his relations with all other partners and withdraws himself from the firm 


Options are :

  • Admission
  • Submission
  • Permission
  • Retirement
  • All of the above

Answer :Admission

Which of the following is not correct in connection with a bond:


Options are :

  • A bond is negotiable promissory note
  • Rate of interest on a bond is fixed and called coupon rate
  • Bond is redeemable any time
  • Expected cash flow from bond include interest payments plus the repayment of principal

Answer :Bond is redeemable any time

The stock valuation model that determines the current stock price as the next dividend divided by the (discount rate less the dividend growth rate) is called the     


Options are :

  • Zero growth model
  • Dividend growth model
  • Capital asset pricing model
  • Earnings capitalization model

Answer :Dividend growth model

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

A stock's next expected dividend divided by the current stock price is the :


Options are :

  • Current yield
  • Total yield
  • Dividend yield
  • Capital gains yield
  • Earnings yield

Answer :Current yield

A purchased a car for ?5,00,000, making a down payment of ? 1,00,000 and signing a ? 4,00,000 bill payable due in 60 days. As a result of this transaction


Options are :

  • Total assets increased by ? 5,00,000.
  • Total liabilities increased by ? 4,00,000.
  • Total assets increased by ? 4,00,000.
  • Total assets increased by ? 4,00,000 with corresponding increase in liabilities by ? 4,00,000.

Answer :Total assets increased by ? 4,00,000 with corresponding increase in liabilities by ? 4,00,000.

In the books of D Ltd. the machinery account shows a debit balance of ? 60,000 as on April 1, 2009. The machinery was sold on September 30, 2010 for ? 30,000. The company charges depreciation @ 20% p.a. on diminishing balance method. Profit / Loss on sale of the machinery will be _________


Options are :

  • ? 13,200 profit
  • ? 13,200 loss
  • ? 6,800 profit
  • ? 6,800 loss

Answer :? 13,200 loss

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

The net present value (NPV) rule can be best stated as :


Options are :

  • An investment should be accepted if, and only if, the NPV is exactly equal to zero.
  • An investment should be rejected if the NPV is positive and accepted if it is negative.
  • An investment should be accepted if the NPV is positive and rejected if it is negative.
  • An investment with greater cash inflows than cash outflows, regardless of when the cash flows occur, will always have a positive NPV and therefore should always be accepted

Answer :An investment should be accepted if, and only if, the NPV is exactly equal to zero.

If a firm receives advance against purchase of goods from a customer, it does not take this to income or sale, due to which of the following concept:


Options are :

  • Realization concept
  • Revenue recognition concept
  • Conservation concept
  • Going concern concept

Answer :Revenue recognition concept

Which one is not based on passage of time?


Options are :

  • Straight line
  • Sum-of-the years
  • Declining balance
  • Units of products
  • None of the above

Answer :Straight line

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Depreciation expense in the declining balance method is calculated by the depreciation rate:


Options are :

  • time book value at the beginning of the year
  • plus book value at the end of the year
  • divided by book value at the beginning of the year
  • times accumulated depreciation at year end
  • none of the above.

Answer :time book value at the beginning of the year

A truck cost ? 1,05,000 with a residual value of ? 1,00,000. it has an estimated useful life of 5 years If the truck was bought on july 9 what would be the book value at the end of year 1?


Options are :

  • ? 1,00,000
  • ? 95,000
  • ? 85,000
  • ? 25,000
  • None of the above.

Answer :? 1,00,000

The depreciation method in which the depreciation is calculated on the principle that the asset loses an equal amount of value every year:


Options are :

  • Written down value method
  • Sum of years method
  • Doubt declining balance method
  • Straight line method

Answer :Straight line method

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which of the following event/transaction shall not be recorded in the accounting books of a company:


Options are :

  • Compensation paid to a worker by the company for injury during duty hours
  • Adverse effect of performance of the company due to ill health of the managing director
  • Write off of a account of a trade debtor who died after meeting an accident
  • All the above

Answer :Adverse effect of performance of the company due to ill health of the managing director

Amit Ltd. purchased a machine on 1.5.2018 for ? 1,20,000. Installation expenses were ? 10,000. On 01.07.2018, expenses for repairs were incurred to the extent of ? 2,000. Depreciation is provided under straight line method. Depreciation rate is 10%. Annual Depreciation will be ________


Options are :

  • ?13,000
  • ?17,000
  • ? 21,000
  • ?25,000

Answer :?13,000

Maximum timeframe for collection of cheque drawn on state capitals/major cities/other locations are _________ days respectively.


Options are :

  • 7/10/14
  • 7/14/18
  • 5/14/18
  • 7/10/28

Answer :7/10/14

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

What is a Nominal Account ?


Options are :

  • An account of each person or firm with whom the trader deals
  • An account of each head of expense or source of income
  • An account of each property or possession dealt in by the trader in his business
  • None of these

Answer :An account of each head of expense or source of income

When the accounting standards are not followed by a business (a) the auditors qualify their audit reports (b) if auditors d do not qualify their audit reports they are guilty of professional misconduct (c) the management is held responsible.


Options are :

  • A to c all correct
  • A to c are correct
  • A and b are correct
  • B and c are correct

Answer :A to c all correct

What is the fundamental rule of debit and credit with regard to Assets or Real accounts?


Options are :

  • Debit the receiver and credit the giver
  • Debit what comes in the credit what goes out
  • Debit expenses and losses and credit gains
  • All the above.

Answer :Debit what comes in the credit what goes out

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

How do profits made from normal operations retained in business appear in the balance sheet? 


Options are :

  • Under capital
  • Under capital, reserves & surplus
  • Under cash in hand, at bank
  • None of the above

Answer :Under capital, reserves & surplus

The accounting equation-"Assets=capital+ liability" is due to application of which of the following accounting concept:


Options are :

  • Business entity concept
  • Money measurement concept
  • Realization concept
  • Dual aspect concept

Answer :Dual aspect concept

Should a company accept a project that has an IRR of 14% and an NPV of $2.8 million if the cost of capital is 12%?


Options are :

  • Yes, based only on the NPV.
  • Yes, based on the NPV and the IRR.
  • No, based on both the NPV and IRR.

Answer :Yes, based on the NPV and the IRR.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A no. of notes are appended to the balance sheet by companies which include information such as contingent liabilities, market value of investments etc. This is due to compliance of which of the following accounting concepts:


Options are :

  • Business entity concept
  • Money measurement concept
  • Realization concept
  • Accounting of full disclosure concept

Answer :Accounting of full disclosure concept

Which of the following statements least accurately describes the IRR and NPV methods?


Options are :

  • The NPV tells how much the value of the firm has increased if you accept the project.
  • When evaluating independent projects, the IRR and NPV methods yield the same accept/reject decisions.
  • When selecting between mutually exclusive projects, the project with the highest NPV should be accepted regardless of the sign of the NPV calculation.

Answer :When selecting between mutually exclusive projects, the project with the highest NPV should be accepted regardless of the sign of the NPV calculation.

The principal of conservatism in accounting concepts stands for:


Options are :

  • Anticipate no profit and provide for all possible losses
  • Conserve all the financial resources
  • Use the resources of the organization very carefully
  • Do not overstate the assets or liabilities

Answer :Anticipate no profit and provide for all possible losses

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Capital ? 40,000 + Liabilities ? 15,000 = Assets ? _______


Options are :

  • ? 25,000
  • ? 65,000
  • ? 55,000
  • ? 45,000
  • None of the above.

Answer :? 55,000

Wages paid to Raju should be debited to


Options are :

  • Sales return account
  • Customer account
  • Goods account

Answer :Customer account

A firm records the income and expenditure when it is actually received and incurred. The firm is following which  of the following accounting system:


Options are :

  • Accrual system
  • Hybrid system
  • Mercantile system
  • A and c both

Answer :Mercantile system

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

_____account is debited because _______ come in.


Options are :

  • Cash, Cash
  • Goods, Goods
  • Real, cash
  • Nominal, Goods
  • None of the above

Answer :Cash, Cash

Complete the following accounting equation (assets ?110000-liabilities ?______ =  capital ?80000:


Options are :

  • ?190000
  • ?110000
  • ?80000
  • ?30000

Answer :?30000

A person who owes us something is called a _______ and a person whom we owe something is called a __________Creditor.


Options are :

  • Lessee, Lesser
  • Creditor, Debtor
  • Debtors Creditor
  • Bailor, Bailee
  • None of the above

Answer :Debtors Creditor

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Which of the following statements is correct w.r.t Strong Rooms - I) The light of strong room should be on 24 Hours a day. II) The Strong Room or Safe must be under the double lock of the Cashier and the Supervising Official in charge of cash III) Both officials must be present when the Strong Room/Safe is opened. IV) All receptacles in the Strong Room used for storing Cash and Small Coin balances must also be under the double lock of the Cashier and the Supervising Official


Options are :

  • Only III and IV
  • Only I,II,IV
  • All of the above viz. I,II,III,IV
  • Only II,III,IV

Answer :Only II,III,IV

Nominal accounts are transferred to __________ at the end of the year.


Options are :

  • Final Account
  • Balance Sheet
  • Sales Account
  • None of the above
  • Profit & Loss Account

Answer :Profit & Loss Account

Which of the following are not properly matched in terms of classification of accounts:


Options are :

  • Machinery- real account
  • Ramesh (buyer of goods from the firm on credit)- personal account
  • Bank account � real account
  • Salary paid- nominal account

Answer :Bank account � real account

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

Balances of real accounts and personal accounts are _________to the next period


Options are :

  • Carried forward
  • Paid Off
  • All of the above
  • Not Carried Forward
  • None

Answer :Carried forward

Which of the following is INCORRECT w.r.t Cash Balance of the Bank.  I) The bulk of the Cash Balance should always be in the Strong Room/Safe under joint custody II) Cashier's Hand Balance left with the Head Cashier/Cashier during the day for the day's transactions will be kept as low as conveniently possible. III) The Reserve Cash Register must always remain in the Manager's Cabin under locker. IV) The amount recorded in the Cash Balance Book must be checked and signed by the Head Cashier/Cashier and the Supervising Official.


Options are :

  • Only III
  • Only I,II
  • All of the above viz. I,II,III,IV
  • Only II

Answer :Only III

Which of the features of the journal and ledger given as under is not correct:


Options are :

  • Journal is book of original entry
  • Journal is a book of analytical record
  • Ledger is a book of secondary record
  • Process of recording the transaction in ledger is called posting

Answer :Journal is a book of analytical record

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

Which of the following statements are true about Ratio Analysis? (i) Ratio analysis is useful in financial analysis, (ii) Ratio analysis is helpful in communication and coordination, (iii) Ratio Analysis is not helpful in identifying weak spots of the business


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :(i), (ii) and (iii)

Burr Company had the following account balances at March 31, 2018:  Cash in banks ?22,50,000 Cash on hand 1,25,000 Cash legally restricted for additions to plant(expected to be disbursed in Sept 2018) 16,00,000 Cash in banks includes ?6,00,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Burr. In the current assets section of Burr's March 31,2018 balance sheet, total cash should be reported at


Options are :

  • ?17,75,000
  • ?22,50,000
  • ?23,75,000
  • ?39,75,000

Answer :?23,75,000

With respect to new norms, each bank will have to offer a uniform interest rate on savings bank deposits up to _________, irrespective of the amount in the account within this limit.


Options are :

  • ? 2 lakh
  • ? 1 lakh
  • ? 5 lakh
  • ? 3 lakh

Answer :? 1 lakh

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

The inventory valuation is subjective because it depends on the Accounting policies followed by the accountant. The inventory valuation is subjective because it depends on the followed by the accountant


Options are :

  • Accounting policies
  • Debit Credit Policies
  • Differences
  • Purchases
  • None of the above

Answer :Accounting policies

Which of the following statement is true w.r.t operational aspect of Fixed Deposits?  I) Minimum period as per RBI is 7 days. Maximum period is 10 years II) The interest is normally paid on quarterly basis III) Depositor can request for addition or deletion of names in the deposit  IV) In case of death of depositor, interest for overdue period will be paid at saving rate if depositor died after maturity date.


Options are :

  • Only III
  • Only I,II
  • All of the above viz. I,II,III,IV
  • Only II

Answer :All of the above viz. I,II,III,IV

The journal entries are posted in the ledger:


Options are :

  • In order of their category
  • In order of their dates
  • In order of their importance
  • As per discretion of the firm

Answer :In order of their dates

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Which of the following are advantages of CBS in banking?  I) Anytime and Anywhere banking  II) Increase in quality of the service provided to the customers III) Strong audit and internal controls IV) Bring down the cost of transaction and thereby improving operational  efficiency


Options are :

  • Only III
  • Only I,II
  • All of the above viz. I,II,III,IV
  • Only II

Answer :All of the above viz. I,II,III,IV

The cost formulae recommended by Accounting Standard 2 for valuation of inventories are -


Options are :

  • FIFO or Weighted Average
  • Standard Cost.
  • LIFO or latest purchase price.
  • All of the above

Answer :FIFO or Weighted Average

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