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
  • Cant 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

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