JAIIB Accounting and Finance for Bankers Mock Tests Set 2

The removal of stock from old works to new site is...


Options are :

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

Answer :Revenue expenditure

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

The rule regarding PERSONAL ACCOUNT is:


Options are :

  • Debit what comes in, credit what goes out,
  • Debit all expenses and losses,
  • Debit the receiver, credit the giver
  • None

Answer :Debit the receiver, credit the giver

How much is the Capital or/and Revenue Expenditure in "Fixtures of the book value of ? 20000 were sold off at ? 14000 and new fixtures of the value of ? 10000 were acquired.


Options are :

  • Capital expenditure - ?16000
  • Revenue expenditure - ?16000
  • Capital expenditure - ?10000 and Revenue expenditure - ?6000
  • Capital expenditure - ?6000 and Revenue expenditure - ?10000

Answer :Capital expenditure - ?10000 and Revenue expenditure - ?6000

An expenditure charged to P&L a/c over a period of 5 to 6 years is an example of ...


Options are :

  • Revenue expenditure
  • Capital expenditure
  • Deferred revenue expenditure
  • All of the above

Answer :Deferred revenue expenditure

JAIIB Accounting and Finance for Bankers Mock Tests Set 4

Which of the following is least likely to be correct?


Options are :

  • The base currency is said to be trading at a forward premium if the forward points are positive.
  • The base currency is said to be trading at a forward premium if the forward rate is above the spot rate.
  • The base currency is said to be trading at a forward premium if it is the currency with the higher interest rate.

Answer :The base currency is said to be trading at a forward premium if it is the currency with the higher interest rate.

Officially Valid Documents (OVD) for a Company is/are- I) Certificate of incorporation II) Memorandum and Articles of association III) A resolution from the board of Directors IV) Power of attorney


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 I,II,III

Which of the following is true for leasing


Options are :

  • Lessor only can claim depreciation.
  • Lessee only can claim depreciation.
  • Both lessor and lessee can claim depreciation.
  • Neither lessor and lessee can claim depreciation.

Answer :Lessor only can claim depreciation.

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

Which of the following is true for Hire-Purchase


Options are :

  • Seller only can claim depreciation.
  • Hire-Purchaser only can claim depreciation.
  • Both Seller and Hire-Purchaser can claim depreciation.
  • Neither Seller and Hire-Purchaser can claim depreciation.

Answer :Hire-Purchaser only can claim depreciation.

An expenditure is a revenue expenditure because ...


Options are :

  • The amount is very small
  • The amount is paid in installments
  • It is intended to benefit in the current period
  • It is intended to benefit in the future period

Answer :It is intended to benefit in the current period

Which one is also called as "Liquidity Ratios"?


Options are :

  • Profitability Ratios
  • Turnover Ratios
  • Short-term Solvency Ratios
  • Long-term Solvency Ratios

Answer :Short-term Solvency Ratios

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

Which one is not the uses of Accounting Ratios?


Options are :

  • Facilitate Inter-Firm comparison
  • Facilitate Intra-Firm comparison
  • Help in Planning
  • None of these

Answer :Help in Planning

FIU –IND Stands for -


Options are :

  • Financial Intelligence Unit – India
  • Financial Inspection Unit – India
  • Foreign Inspection Unit – India
  • Financial Insider Unit – India

Answer :Financial Intelligence Unit – India

If nothing is given in the financial statements about the three accounting assumptions then it is to be treated as it


Options are :

  • Is assumed that it is not followed
  • Is assumed to be followed
  • Is assumed to be followed to some extent
  • None of the above

Answer :Is assumed to be followed

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Which of the following statements is correct w.r.t. Need and Importance of Preparing a Balance Sheet?  I. The main purpose of preparing a Balance Sheet is to ascertain the true financial position of the business at a particular point of time.  II. It helps in ascertaining the nature and cost of various assets o the business such as the amount of Closing Stock, amount owing from Debtors, amount of fictitious assets etc.  III. It helps in determining the nature and amount of various liabilities of the business.  IV. It gives information about the exact amount of capital at the end of the year and the addition or deduction made into it in the current year.


Options are :

  • Only I, III, IV
  • All I, II, III, IV
  • Only I, II
  • Only III, IV

Answer :All I, II, III, IV

Acid test ratio is also called as


Options are :

  • Quick Ratio
  • Liquidity Ratio
  • Both a and b
  • Neither a not b

Answer :Both a and b

Retiring a bill under rebate means...


Options are :

  • dishonoring the bill
  • making payment of the bill after the due date
  • making payment of the bill before the due date
  • making payment of the bill on the due date

Answer :making payment of the bill before the due date

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Ideal ratio for "Acid test ratio" is


Options are :

  • 0.5
  • 1
  • 2
  • 0.67

Answer :1

Consignment Account is of the nature of a...


Options are :

  • Real Account
  • Personal Account
  • Representative Personal Account
  • Nominal Account

Answer :Nominal Account

Name of the report that is used to monitor Counterfeit Currency Notes -


Options are :

  • STR
  • CTR
  • CCR
  • CBWT

Answer :CCR

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

"Return on Investment" is also called as


Options are :

  • Overall Profitability Ratio
  • Earnings per Share
  • Gross Profit Ratio
  • Net Profit Ratio

Answer :Overall Profitability Ratio

For payment of noting charges to the notary public...


Options are :

  • Noting charges a/c is debited
  • Bank a/c is debited
  • Noting charges a/c is credited
  • Cash a/c is credited

Answer :Cash a/c is credited

Which is not a type of petty cash book are


Options are :

  • Simple petty cash book
  • Columnar petty cash book
  • Two columnar petty cash book
  • None of these

Answer :Two columnar petty cash book

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

The following are the benefits of Accounting Standards except:


Options are :

  • Eliminate confusing variations in accounting treatment.
  • Disclosure of Important Information beyond that required by law.
  • Facilitate comparison of financial statements by providing valuation norms and standard accounting policies.
  • Choice between justified alternative accounting treatments becomes difficult.

Answer :Choice between justified alternative accounting treatments becomes difficult.

The series of fixed payments paid or received by a persons at specified frequency over a fixed period of time are called:


Options are :

  • installments
  • annuities
  • maturity payments
  • sinking funds

Answer :annuities

Which of the following formula for calculation of compounded interest is not matched:


Options are :

  • P(1+r)= for calculation of annual compounding
  • P(1+(r/4))= for calculation of quarterly compounding
  • P(1+(r/2)= for calculation of half-yearly compounding
  • P(1+(r/4))=for calculation of weekly compounding

Answer :P(1+(r/4))=for calculation of weekly compounding

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Under casting of the credit side of Cash Book has the same effect as overcasting of the


Options are :

  • Debit side of the pass book.
  • Credit side of the pass book.
  • There is no relevance between the two
  • None of the above

Answer :Debit side of the pass book.

The Pass book of an account holder is the copy of


Options are :

  • the bank columns in the cash book of the account holder
  • the relevant account in the books of a bank
  • the cash column in the cash book of a customer
  • None of the above

Answer :the relevant account in the books of a bank

X is a dealer of electrical goods (such as Refrigerator, Washing Machines, Televisions etc.). He purchased two Air Conditioners and installed in his showroom. In the books of X, the cost of air conditioner would be debited in:


Options are :

  • Drawings Account
  • Capital Account
  • Fixed Asset Account
  • Purchase Account

Answer :Fixed Asset Account

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Entries for issuance of cheques are made immediately by the customer to the credit of cash book,but the bank debits the customer account


Options are :

  • immediately
  • on presentation over counter
  • on presentation in clearing
  • on presentation on counter or in clearing

Answer :on presentation on counter or in clearing

Loss of goods due to fire for ?50000 is


Options are :

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

Answer :Revenue expenditure

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