JAIIB Accounting and Finance for Bankers Mock Tests Set 4

A non - banking asset is ...


Options are :

  • Furniture, Fixture and Fittings
  • Office equipment
  • Money at call and short notice
  • Asset acquired from the debtors in satisfaction of claims against them

Answer :Asset acquired from the debtors in satisfaction of claims against them

JAIIB Accounting and Finance for Bankers Mock Tests Set 5

Discount allowed on issue of shares is shown in ...


Options are :

  • Assets side of Balance Sheet
  • Liabilities side of balance sheet
  • Debit side of P & L a/c
  • Credit side of P & L a/c

Answer :Assets side of Balance Sheet

share Allotment Account is ...


Options are :

  • Real Account
  • Personal Account
  • Nominal Account
  • Asset Account

Answer :Personal Account

Diwali advance given to an employee is


Options are :

  • Revenue Expenditure
  • Capital Expenditure
  • Deferred Revenue Expenditure
  • Not an Expenditure

Answer :Not an Expenditure

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

A person invests some money in bonds on which interest would be received by him on half-yearly basis at the end of each 6th month. Such payment can be said to be:


Options are :

  • At the end annuity
  • At the beginning annuity
  • Ordinary annuity
  • Sinking annuity

Answer :Ordinary annuity

The rate of return required by investors in the market for owning a bond is called the :


Options are :

  • Coupon
  • Face value
  • Maturity
  • Yield to maturity
  • Coupon rate

Answer :Coupon

Which bond would most likely possess the least degree of interest rate risk?   


Options are :

  • 8% coupon rate, 10 years to maturity
  • 10% coupon rate, 10 years to maturity
  • 8% coupon rate, 20 years to maturity.
  • 12% coupon rate, 20 years to maturity.

Answer :8% coupon rate, 10 years to maturity

JAIIB Accounting and Finance for Bankers Mock Tests Set 7

A firm has been changing its depreciation policy after every 2-3 years. It is violating, which of the following concept:


Options are :

  • Conservation concept
  • Consistency concept
  • Accounting period concept
  • Historical cost concept

Answer :Consistency concept

A second hand machinery is purchased for ? 10,000, the amount of ? 1,500 is spent on its transportation and ? 1,200 is paid for installation. The amount debited to machinery account will be


Options are :

  • ? 10,000
  • ? 10,500
  • ? 11,500
  • ? 12,700

Answer :? 12,700

Current Assets ? 2,00,000; Inventories ? 1,00,000; Working Capital ? 1,20,000; Current Ratio is?


Options are :

  • 2.5:1
  • 2:1
  • 1.5:1
  • 1:1

Answer :2.5:1

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

A firm dealing in cloth has 15,000 meters of cloth on April 1, 2009 valued at ?1,50,000. The firm purchased 20,000 meters @ ?12 per meter during the year ending 31st March, 2010 and sold 30,000 meters @ ?25 per meter during the same period. As per LIFO, the closing inventory will be valued at:


Options are :

  • ? 60,000
  • ? 1,25,000
  • ? 50,000
  • None of the above.

Answer :? 50,000

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Jaya Lakshmi, a corporate finance analyst is considering two mutually exclusive capital budgeting projects with conflicting rankings (one has the higher positive NPV, while the other has a higher IRR). The most appropriate project she can choose is the one with the:


Options are :

  • higher IRR.
  • higher NPV.
  • shorter payback period.
  • longer payback period

Answer :higher NPV.

Trading Account is also called -


Options are :

  • Goods A/c
  • Sales A/c
  • Expenses A/c
  • Manufacturing A/c

Answer :Goods A/c

Which of the following is true w.r.t front offices in banks ? I) Refers to bankís departments that come in contact with clients. II) Front office include the marketing, sales, and customer relations operation of the bank. III) The front office staff directly produces the revenue. (IV) Front office functions can be outsourced to consultants and contractors, including ones in other countries.


Options are :

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

Answer :Only I,II,III

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following is true w.r.t Back Offices in Banks ? I) Back office staff, perform administrative and other support functions for the front office. II) Back offices may be located other than the bank branch with cheaper rent and lower labour costs. III) The Back office staff directly produces the revenue. (IV) Back office functions can be outsourced to consultants and contractors, including ones in other countries.


Options are :

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

Answer :Only I,II,IV

Preparation of Trading Account serves which of the following objectives? I. It provides information about Gross Profit and Gross Loss II. It provides information about the direct expenses III. Comparison of closing stock with those of the previous years IV. It provides safety against possible losses


Options are :

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

Answer :All I, II, III and IV

______________ is defined as a bankís use of a third party to perform activities on a continuing basis that would normally be undertaken by the bank itself, now or in the future.


Options are :

  • Casual Labor
  • Outsourcing
  • Commissioning
  • Affiliating

Answer :Outsourcing

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Which of the following activities should NOT be Outsourced? I) internal Audit II) Compliance function III) sanction for loans (IV) Cartridge refilling in printers


Options are :

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

Answer :Only I,II,III

The key elements of the KYC policy of RBI are -


Options are :

  • Customer Acceptance Policy (CAP)
  • Risk Management (RM)
  • Customer Identification Procedure (CIP)
  • All of the above

Answer :All of the above

The Credit Voucher will be created out of which of the following transactions-                                     I) Applications for issued of demand draft II) Challans for deposit of Advance Tax. III) Withdrawal forms received from the savings bank account holders IV) Pay-in-slips filled up the customers


Options are :

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

Answer :Only I,II,IV

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which one of the following statements is 'true'   


Options are :

  • The term 'depreciation', 'depletion' and 'amortization' refer to one and the same thing.
  • No method of depreciation accurately calculates the charge to be made in respect of the asset.
  • Depreciation base refers to the amount on which the rate of depreciation is applied for computing the amount of depreciation.
  • The total amount of depreciation to be allocated over the useful like of the asset is the difference between the total acquisition cost and the replacement value.
  • The total amount of depreciation to be written off over the life of an asset is equal to the cost of the asset plus its depreciation.

Answer :No method of depreciation accurately calculates the charge to be made in respect of the asset.

Which of the following is a revenue expenditure?


Options are :

  • Freight paid on purchase of plant and machinery
  • Legal expenses paid to acquire a property
  • Annual white wash of the factory building
  • Expenses incurred to reduce working capital requirement

Answer :Annual white wash of the factory building

Loss caused by theft of cash by cashier after business hours is a:


Options are :

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

Answer :Capital loss

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Which of the following is not a contingent liability?


Options are :

  • Claims against enterprises not acknowledge debts
  • Guarantees gives in respect of third parties
  • Liabilities in respect of bills dishonoured
  • Penalty imposed by Excise officer for violation of a provision of the Central Excise Act.

Answer :Penalty imposed by Excise officer for violation of a provision of the Central Excise Act.

Sale to Mr. Z of ? 3,000 on credit was recorded twice in the sales book. The rectification entry is:


Options are :

  • Mr. Z will be credited
  • Mr. Z will be debited
  • Sales account will be credited
  • None

Answer :Mr. Z will be credited

Anju presented four cheques ? 23,000, ? 21,000, ? 16,000 and ? 14,000 with the bank on 27th March, 2014. Out of these cheques amounting ? 16,000 cleared on 30th March, 2014. Cheques amounting to ? 23,000 and ? 14,000 were shown in the pass book in the month of April 2014. Cheque of ? 21,000 was unsigned, so it was returned back. Which of these in Bank Reconciliation statement?


Options are :

  • ? 23,000, ? 21,000 and ? 14,000
  • ? 23,000, ? 21,000 ? 16,000 and ? 14,000
  • ? 23,000 and ? 14,000
  • ? 21,000

Answer :? 23,000 and ? 14,000

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

Which of the following is correct w.r.t. Customer Acceptance Policy (CAP) as stated by RBI  I) No account is opened in anonymous or fictitious/benami name II) No account is opened where the bank is unable to apply appropriate CDD measures. III) No transaction or account based relationship is undertaken without following the CDD procedure. (IV) No account in US can be opened by Indian citizen without consent from RBI.


Options are :

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

Answer :Only I,II,III

Under this method, the annual charge for depreciation decrease from year to year, so that the earlier year suffer to the benefit of the later year. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that total charge to revenue is uniform, when the depreciation is high, repairs are negligible, and as the repairs are negligible, and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:


Options are :

  • Sinking fund method
  • Annuity method
  • Straight line method
  • WDV method

Answer :WDV method

Which of the following customers will be categorized as Low Risk Category Customers? I) Salaried employees II) Builders III) Customer with a long term and active business relationship IV) Stock Brokers


Options are :

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

Answer :Only I and III

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Proprietorís personal travelling expenses are not to be charged in business accounts. It is due to _____ concept.


Options are :

  • materiality
  • conservatism
  • going concern
  • entity

Answer :entity

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions