JAIIB Accounting and Finance for Bankers Mock Tests Set 5

Which of the following is correct? Owner’s Equity is:


Options are :

  • (Current Asset + Fixed Asset) + (Current Liabilities + Long term Liabilities)
  • (Current Asset + Fixed Asset) - (Current Liabilities + Long term Liabilities)
  • (Current Asset - Fixed Asset) - (Current Liabilities + Long term Liabilities)
  • None of the above

Answer :(Current Asset + Fixed Asset) - (Current Liabilities + Long term Liabilities)

Which of the following statements regarding bank deposit is not correct?


Options are :

  • Interest paid on deposits which is accrued and not due, is not be shown in other liabilities
  • Matured time deposits are to treated demand deposits
  • Deposits under special deposit schemes to be shown under term deposit even when they mature
  • Deposit from banks including deposits from those banks even that have no presence in India.

Answer :Deposits under special deposit schemes to be shown under term deposit even when they mature

JAIIB Accounting and Finance for Bankers Mock Tests Set 6

Net Profit or Loss will be derived at _____ stage of accounting


Options are :

  • Classifying
  • Interpretation
  • Recording
  • Summarising

Answer :Summarising

In bank balance in Schedule 9, the advances are shown in the following heads (a) bills discounted and purchased (b) cash credit, overdrafts and loans payable on demand (c) term loans (d) other loans:


Options are :

  • Only a to c
  • Only b to d
  • Only a, c and d
  • A to d all

Answer :Only a to c

Which one of the following is not a main objective of accounting?


Options are :

  • Systematic recording of the transaction
  • Ascertainment of the profitability of the business
  • Ascertainment of the financial position of the business
  • Solving tax disputes with tax authorities

Answer :Solving tax disputes with tax authorities

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Interpreting Financial Statements means:


Options are :

  • Methodical classification of the data given in the financial statements.
  • Preparation and presentation of the classified data in a manner useful to the users of financial statements.
  • Systematic analysis of the recorded data so as to put information in usable form.
  • Explaining the meaning and significance of the relationship of analysis of accounting data.

Answer :Explaining the meaning and significance of the relationship of analysis of accounting data.

Goodwill Account is an example of -     


Options are :

  • Real (tangible) account
  • Real (intangible) account
  • Personal account
  • Nominal account
  • None of the above

Answer :Real (intangible) account

Which of the following Items are written on the Dr. side of the Trading Account? I. Opening Stock II. Purchases and Purchases Returns III. Direct Expenses IV. Closing Stock


Options are :

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

Answer :Only I, II, III

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Which of the following customers will be categorized as High Risk Category Customers? I) Sleeping Partner firms II) Non-resident customer III) Liquor stores owners IV) Jewelers


Options are :

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

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

A sum of ?46,875 was lent out at simple interest and at the end of 1 year 8 months the total amount was ?50,000. Find the rate of interest percent per annum.


Options are :

  • 3%
  • 4%
  • 5%
  • 6%

Answer :4%

The process of recording financial data along with the preparation of trial balance are covered under:-


Options are :

  • Book Keeping
  • Accounting
  • Classifying
  • Summarising

Answer :Book Keeping

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

An asset cost ? 5,00,000/- has residual value of ? 50,000/-, and is expected to last 5 years. Calculate the total depreciation till 3rd year using Straight-line Method.


Options are :

  • ? 90,000
  • ? 1,00,000
  • ? 2,70,000
  • ? 3,00,000

Answer :? 2,70,000

On March 31st, 2016, after sale of goods worth ? 45,000, businessman is left with the closing inventory of ? 20,000. This is:


Options are :

  • an event
  • a transaction
  • a transaction as well as an event
  • neither a transaction nor an event.

Answer :an event

Mr. A purchased fixed assets with the available cash. This transaction would -


Options are :

  • reduce current assets and current liabilities
  • reduce current assets and increase fixed assets
  • reduce current assets and reduce fixed assets
  • reduce current assets and increase current liabilities
  • keep current assets and fixed assets unchanged.

Answer :reduce current assets and current liabilities

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

Following are the items of the balance sheet of Mr. X:  Capital ? 7,00,000; Machinery ? 5,00,000 and Cash ? 2,00,000. If Mr. X spends ? 5,000 to meet his family expenses, the balance of capital and cash accounts will be


Options are :

  • ? 7,00,000 and ? 2,00,000.
  • ? 6,95,000 and ? 1,95,000.
  • ? 7,00,000 and ? 1,95,000.
  • ? 6,95,000 and ? 2,00,000.

Answer :? 6,95,000 and ? 1,95,000.

Which of the following is a Need and Importance of Profit & Loss A/c? I. To Ascertain the Net Profit or Net Loss II. Comparison with previous years’ profit III. Control on Expenses IV. To Ascertain the Gross Profit or Gross Loss


Options are :

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

Answer :Only I, II, III

If projected sale is ? 8 lakhs, net working capital ? 0.50 lakhs, creditors ? 0.40 lakhs and stocks and receivables are worth of ? 2 lakhs, what will be the sanctioned limit as per Nayak Committee? What will be drawing power as per the data with 25% margin?


Options are :

  • ? 1.80 lakhs and ? 1.50 lakhs
  • ? 1.60 lakhs and ? 1.60 lakhs
  • ? 1.50 lakhs and ? 1.20 lakhs
  • ? 1.10 lakhs and ? 1.20 lakhs

Answer :? 1.50 lakhs and ? 1.20 lakhs

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Which one of the following is a true statement ?


Options are :

  • Errors of principle affect the agreement of the trial balance
  • If the two sides of trial balance tally, the books of accounts can be taken as absolutely accurate
  • Errors of commission are committed in those case where proper distinction between revenue and capital items is not made
  • All errors affect the agreement of the trial balance
  • Errors of omission do not affect the agreement of the trial balance

Answer :Errors of omission do not affect the agreement of the trial balance

The Balance sheet of firm reveals that its current assets are ?300 lakhs and long term sources of ? 300 lakhs. If total of the balance sheet is ? 500 lakhs, what is the amount of net working capital and current ratio:


Options are :

  • ? 200 lakhs and 1.5:1
  • ? 200 lakhs and 2:1
  • ? 100 lakhs and 1.5:1
  • ? 100 lakhs and 2:1

Answer :? 100 lakhs and 1.5:1

The purposes of an accounting system includes all the following except


Options are :

  • Interpret and record the effects of business transaction
  • Classify the effects of transactions to facilitate the preparation of reports.
  • Summarize and communicate information to decision makers
  • Inform the type of business transactions in which the enterprise may engage in

Answer :Inform the type of business transactions in which the enterprise may engage in

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

Provision for bad and doubtful debts is result of:


Options are :

  • Conservatism concept
  • Going concern concept
  • Disclosure concept
  • Consistency concept

Answer :Conservatism concept

In trial balance, an outstanding expenditure account will show a-   


Options are :

  • debit balance
  • credit balance
  • sometimes debit and sometimes credit balance
  • only nil balance
  • None of the above

Answer :credit balance

The Accounting Equation is based on:


Options are :

  • Going concern Concept
  • Dual Aspect Concept
  • Money Measurement Concept
  • All of these

Answer :Dual Aspect Concept

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

The method in which depreciation rate is constant is


Options are :

  • straight line method
  • Declining Balance Method
  • Double Declining Balance Method
  • Accelerated Depreciation

Answer :Declining Balance Method

Bank Reconciliation Statement is -       


Options are :

  • A ledger account
  • A Part of cash book with bank column
  • A statement showing the causes of difference between the cash book and the Pass book balances
  • All of the above
  • None of the above.

Answer :A statement showing the causes of difference between the cash book and the Pass book balances

Pass Book is


Options are :

  • a copy of receipts and Payments of the firm
  • a copy of the firm's ledger account maintained by the bank
  • a copy of the banking transactions entered in the Cash Book
  • a record of all transactions
  • a record of withdrawals from the bank.

Answer :a copy of the firm's ledger account maintained by the bank

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

In SPOT, the exchange of currencies take place on


Options are :

  • Same Day
  • Next Day
  • Second Working Day
  • Third Working Day

Answer :Second Working Day

Which one of the following statements is 'true'?       


Options are :

  • The balance as shown by the Bank Pass Book and the balance as shown by the bank column of Cash Book are always equal.
  • Cheques issued but no presented will reduce the balance as per Pass Bank.
  • Pass Book is the statement of account maintained by the customer of the bank
  • Favorable balance as per Cash Book means credit balance in the bank column of Cash Book
  • When money is withdrawn from the bank, the Bank debits the Customer's Account.

Answer :When money is withdrawn from the bank, the Bank debits the Customer's Account.

Which of the following Items are written on the Cr. side of Profit & Loss Account? I. Gross Profit II. Other Incomes and Gains III. Office and Administrative Expenses IV. Selling and Distribution Expenses


Options are :

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

Answer :Only I, II

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

Which one of the following statements is 'false'?     


Options are :

  • pass book is a copy of customer's account in the ledger of the bank
  • Normally, if the Pass Book shows credit balance, the Cash Book shows debit balance
  • Unfavorable bank balance means debit balance in Pass Book and credit balance in Cash Book
  • Unfavorable bank balance means credit balance in Pass Book and debit balance in Cash Book
  • Favorable bank balance means credit balance in Pass Book and debit balance in Cash Book

Answer :Unfavorable bank balance means credit balance in Pass Book and debit balance in Cash Book

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