JAIIB Accounting and Finance for Bankers Mock Tests Set 12

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

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions