JAIIB Accounting and Finance for Bankers Mock Tests Set 11

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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