JAIIB Accounting and Finance for Bankers Mock Tests Set 10

In Double entry system of Book Keeping every business transaction affects


Options are :

  • Two accounts
  • Two sides of the same account
  • The same account on two different dates
  • one personal and one real account

Answer :Two accounts

A person who owes money to the firm is called


Options are :

  • Creditor
  • Debtor
  • Shareholders
  • Owner

Answer :Debtor

As per RBI guidelines, a ‘Customer’ is defined as - I.A person or entity that maintains an account and/ or has a business relationship with the bank. II. One, on whose behalf the account is maintained (i.e., the beneficial owner). III. Beneficiaries of the transactions conducted by professional intermediaries, such as Stock            Brokers, Chartered Accountants, Solicitors etc. as permitted by law. IV. Any person or firm or entity connected with a financial transaction.


Options are :

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

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

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

With respect to KYC, CDD refers to -


Options are :

  • Customer Due Diligence
  • Client Due Diligence
  • Current Defaulters Diligence
  • Client Defaulters Diligence

Answer :Customer Due Diligence

Consistency with reference to application of accounting procedures means


Options are :

  • All companies in the same Industry should use identical accounting procedures
  • Income & assets have not been overstated
  • Accounting methods & procedures shall be followed uniform basis year after year
  • Any accounting method can be followed as per convenience

Answer :Accounting methods & procedures shall be followed uniform basis year after year

Depreciation is the result of (a) wear and tear due to use (b) fall in market price (c) obsolescence (d) passage of time:


Options are :

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

Answer :a to d all

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which concepts work together for income measurement and recognition of assets and liabilities?


Options are :

  • Cost, going Concern and Realization
  • Cost, Accrual and Matching
  • Accrual, Matching and Periodicity
  • Going Concern, Periodicity and Realization

Answer :Accrual, Matching and Periodicity

In double entry, the entry is balanced with a corresponding entry, which is called


Options are :

  • reverse entry
  • adjusting entry
  • contra entry
  • double entry

Answer :contra entry

For nominal accounts, the fundamental rule of Debit and credit is,debit expenses and losses and Credit......


Options are :

  • the giver
  • what goes out
  • incomes and gains
  • none

Answer :incomes and gains

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Customers shall be categorized as ________,__________ and __________ risk category, based on the assessment and risk perception of the banks.


Options are :

  • Low, medium, high.
  • poor, middle, rich
  • both a and b
  • none

Answer :Low, medium, high.

Mr. Z sold goods worth ? 75,500 in the ordinary course of business. He has, ? 50,000 in cash and ? 25,500 as account receivables as at 31st March, 2014. Which concept of accounting is being followed?


Options are :

  • Going Concern Concept
  • Cost Concept
  • Accrual Concept
  • Money Measurement Concept

Answer :Going Concern Concept

Salaries outstanding account belongs to the category of


Options are :

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

Answer :Personal account

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Which of the following is wrong?


Options are :

  • All real and personal accounts are transferred to balance sheet
  • Nominal accounts are transferred to P & L account
  • Each account is opened separately in ledger
  • Rent is a personal account, outstanding rent is nominal account

Answer :Rent is a personal account, outstanding rent is nominal account

________is root cause for financial accounting


Options are :

  • Stewardship accounting
  • Social accounting
  • Management accounting
  • Human resource accounting

Answer :Stewardship accounting

Capital at the start of business-?6,00,000. At the end of the year, worth of the Assets-?10,00,000 and liabilities-?2,00,000. Then Capital at the end of the year........


Options are :

  • ? 8,00,000
  • ? 10,00,000
  • ? 12,00,000
  • ? 6,00,000

Answer :? 8,00,000

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Which of the following customers will be categorized as Medium Risk Category Customers?  I) Pensioner II) NBFCs III) Builders IV) Stock Brokers


Options are :

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

Answer :Only II,III,IV

If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____


Options are :

  • Dr Drawing A/c & Cr Purchases A/c
  • Dr Office Expenses A/c & Cr Motor Car A/c
  • Dr Motor Car A/c & Cr Purchases A/c
  • Dr Motor Car & Cr Sales A/c

Answer :Dr Motor Car A/c & Cr Purchases A/c

If wages are paid for construction of business premises ______ A/c is credited and _____ A/c is debited.


Options are :

  • Wages, Cash
  • Premises, Cash
  • Cash, Wages
  • Cash, Premises

Answer :Cash, Premises

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Banks/FIs need to obtain sufficient information to establish, to their satisfaction, the identity of each new customer under which key element of KYC Policy as directed by RBI-


Options are :

  • Customer Acceptance Policy (CAP)
  • Risk Management (RM)
  • Customer Identification Procedure (CIP)
  • Monitoring of Transaction (TM)

Answer :Customer Identification Procedure (CIP)

Value of the asset is increased or the business has acquired more of that asset, then there is a ........


Options are :

  • Credit in Real Account
  • Debit in Real Account
  • Credit in Nominal Account
  • Debit in Nominal Account

Answer :Debit in Real Account

Rebate on bills discounted account is of the nature of


Options are :

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

Answer :Nominal account

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

OVD stands for -


Options are :

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

Answer :Officially Valid Document

Rent prepaid account is of the nature of


Options are :

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

Answer :Personal account

Value of goods withdrawn by the proprietor for his personal use should be credited to ____ 


Options are :

  • Capital A/c
  • Sales A/c
  • Drawings A/c
  • Purchases A/c

Answer :Purchases A/c

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

Which of the following is incorrect?


Options are :

  • Good will intangible asset
  • Sundry debtors - current asset
  • Loose tools tangible fixed asset
  • Outstanding expenses -current asset.

Answer :Outstanding expenses -current asset.

Accounting standard AS 13 deals with


Options are :

  • Cash Flow statements
  • Valuation of Inventories
  • Depreciation Accounting
  • Accounting for investments

Answer :Accounting for investments

The columns available in a three columnar cash book are...


Options are :

  • Cash, Discount, Bank
  • Cash, Bank, Discount Paid
  • Cash, Discount Received, Bank
  • None of these

Answer :Cash, Discount, Bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

A Trader purchased 100 mobiles @ ? 10,000 each and sold 90 mobiles during the accounting year ended 31st March, 2015. The marketing value of the remaining mobiles was ? 90,000. He valued the closing inventories at cost. He had violated the concept of:


Options are :

  • Periodicity Concept
  • Money Measurement Concept
  • Cost Concept
  • Conservatism Concept

Answer :Conservatism Concept

Rohit carrying on real estate business sold a piece of land for ?4,00,00,000 (cost ?3,50,00,000) then the type of receipt is ______ nature and profit on sale is


Options are :

  • Capital & transferred to capital reserve
  • Revenue & transferred to P & L a/c
  • Capital & transferred to P & L a/c
  • Revenue & transferred to general reserve

Answer :Revenue & transferred to P & L a/c

In income measurement & recognition of assets & liabilities which of the following concepts goes together ?


Options are :

  • Periodicity, Accrual, Matching
  • Cost, Accrual, matching
  • Going concern, cost, Realization
  • Going concern, Periodicity, Reliability

Answer :Periodicity, Accrual, Matching

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

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