JAIIB Accounting and Finance for Bankers Mock Tests Set 6

An  asset  was  purchased  for  ?1000000  with  the  down  payment  of  ?200000 and bills accepted for ?800000/-What would be the effect on the total asset and total liabilities in the balance sheet?


Options are :

  • Assets increased by ?800000 and liabilities decreased by ?800000
  • Assets decreased by ?800000 and liabilities increased by ?800000
  • Assets increased by ?1000000 and liabilities increased by ?800000
  • Assets increased by ?800000 and liabilities increased by ?800000

Answer :Assets increased by ?800000 and liabilities increased by ?800000

Which one of the following is an error of principle?   


Options are :

  • cash sale of ? 200 wrongly entered in Sales Book.
  • Sales of ? 200 entered in the books as ? 2,000
  • Purchase of ? 2,000 entered in the books as ? 200
  • Purchase transaction entered in Purchases Return Book.
  • Debiting Repairs a/c instead of Furniture a/c

Answer :Debiting Repairs a/c instead of Furniture a/c

JAIIB Accounting and Finance for Bankers Mock Tests Set 7

An expenditure is a capital expenditure because-


Options are :

  • the amount is very large
  • the amount is paid in lump-sum
  • it is intended to benefit in the current period
  • it is intended to benefit in the future period
  • None of the above.

Answer :it is intended to benefit in the future period

Vijaya Bank  had granted a cash credit limit of ? 15 lakhs and Letter of Credit (Usance LC-60 days) limit of ? 10 lakhs to M/s Banwari Traders against stocks in trade with 25% margin, What should be value of stocks that the firm should have with them, if they want to avail the both the sanctioned limit fully. It may be noted that the firm avails regular credit from market against stocks to the extend of ? 8 lakhs.


Options are :

  • ? 40.00 lakhs
  • ? 41.33 lakhs
  • ? 38.00 lakhs
  • ? 44.00 lakhs

Answer :? 38.00 lakhs

As per amended definition of ‘Officially Valid Document’ (OVD) 2017 , What has been removed from its definition ?


Options are :

  • Only PAN Card
  • Only Aadhar Card
  • Both a & b
  • None

Answer :Both a & b

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Omission of paise and showing the round figures in financial statements is based on:


Options are :

  • Conservatism concept
  • Consistency concept
  • Materiality concept
  • Realization concept

Answer :Materiality concept

An expenditure which helps in increasing the earning capacity of the firm is-


Options are :

  • revenue expenditure
  • capital expenditure
  • deferred revenue expenditure
  • All of the above
  • None of the above.

Answer :revenue expenditure

A firm has net working capital of ? 60000/- at the beginning of the year which increase to ? 120000/- at the end of the year. Its current ratio has not changed and continues to be at 2:1. What the amount of current assets at the end of the year? And what is the amount in current liability during the year?


Options are :

  • ? 120000 and ? 60000
  • ? 180000 and ? 90000
  • ? 240000 and ? 60000
  • ? 300000 and ? 120000

Answer :? 240000 and ? 60000

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

Construction of building is an example of-   


Options are :

  • revenue expenditure
  • capital expenditure
  • deferred revenue expenditure
  • All of the above
  • None of the above.

Answer :capital expenditure

The stock turnover is 8 times and net profit to sales percent of 8%. The amount of opening and closing stocks ? 8 lakhs and ? 12 lakhs respectively. What is the amount of net profits?


Options are :

  • ? 4.6 lakhs
  • ? 6.4 lakhs
  • ? 7.68 lakhs
  • ? 8.24 lakhs

Answer :? 6.4 lakhs

An expenditure on advertisement for furtherance of market for products is an example of-     


Options are :

  • revenue expenditure
  • capital expenditure
  • deferred revenue expenditure
  • All of the above
  • None of the above.

Answer :deferred revenue expenditure

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Which of the following statements least accurately describes the IRR and NPV methods?


Options are :

  • The discount rate that gives an investment an NPV of zero is the investment’s IRR.
  • If the NPV and IRR methods give conflicting decisions for mutually exclusive projects, the IRR decision should be used to select the project.
  • The NPV method assumes that a project’s cash flows will be reinvested at the cost of capital, while the IRR method assumes they will be reinvested at the IRR.

Answer :If the NPV and IRR methods give conflicting decisions for mutually exclusive projects, the IRR decision should be used to select the project.

A Loss is a revenue loss because-


Options are :

  • it arises due to normal operations of business
  • it decreases tax liability
  • It is related to current assets
  • . It is related to fixed assets
  • None of the above.

Answer :it arises due to normal operations of business

Amount paid for acquiring good will is an example of-


Options are :

  • revenue expenditure
  • capital expenditure
  • deferred revenue expenditure
  • All of the above
  • None of the above.

Answer :capital expenditure

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

The asset lose an equal amount of value each year in case of


Options are :

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

Answer :straight line method

The main objective of providing depreciation is


Options are :

  • To allocate true profit.
  • To show the true financial position in the balance sheet.
  • To reduce tax burden.
  • To provide funds for replacement of fixed assets.

Answer :To allocate true profit.

A receipt is a capital receipt because-


Options are :

  • It is received in the accounting year
  • The amount is heavy
  • It is not credited to Capital a/c
  • It relates to availability of long period
  • None of the above

Answer :It relates to availability of long period

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

You are computing the future value of an annuity. Assume that the annuity payment is $120,000, the future value annuity factor is 21.664 and the interest rate is 4.50 percent per year. Which of the following are you least likely to use for computing the future value?


Options are :

  • Annuity amount.
  • Future value annuity factor.
  • Interest rate.

Answer :Interest rate.

Incorrect treatment of capital expenditure as revenue expenditure would result in


Options are :

  • Increase in capital and reserves
  • Decrease in capital and reserves
  • Decrease in loss
  • Increase in profits
  • Decrease in profit or increase in losses.

Answer :Decrease in profit or increase in losses.

Valuation of stock in accounting follows the principle of cost price or ____ which ever is lower.


Options are :

  • Market Price
  • Average Price
  • Net realizable Value
  • None of these.

Answer :Net realizable Value

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

The distinction between capital and revenue is necessary for the preparation of-   


Options are :

  • Receipts & Payment a/ only
  • Profit & Loss a/c only
  • Final Account.
  • Cash Flow Statement
  • Funds Flow Statement

Answer :Final Account.

The steps that RBI has advised the banks in case of partial freezing/closure of Non KYC compliant accounts are - Step 1. Initially, a notice of 3 months should be should be given for KYC compliance, Step 2. It should be followed by reminder for further 3 months, Step 3. Thereafter, Partial freeze the debit and allowing credit only, Step 4. If partial freeze continues for 6 months and account is still non-KYC complaint, freeze both credit and debit and may close the account. Step 5. Closer of account shall be approved only by the Regional/Zonal Head. Step 6. Reason for partial freeze and closure should be communicated to account holder.


Options are :

  • Only Steps 1,2,3,4,6 are correct
  • Only Steps 1,2,3,4,5 are correct
  • Only Steps 2,3,4,6 are correct
  • Only Steps 3,4,6 are correct

Answer :Only Steps 1,2,3,4,6 are correct

Banks has to monitor the transaction of its accounts and concerned report has to be submitted to __________ periodically.


Options are :

  • FID – IND
  • FIU - IND
  • FIS – RBI
  • FIU – RBI

Answer :FIU - IND

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

There was difference in the bank column of cash book and passbook by ? 2,500. On scrutiny it was found that interest of ? 500 charged directly by the bank was not entered in the cash book. The same was adjusted in the cashbook before reconciliation statement. Now, in the bank reconciliation statement, this interest of ? 500 is to be


Options are :

  • Added to the cash book balance.
  • Subtracted from the cash book balance.
  • Ignored while preparing bank reconciliation statement.
  • None of the above.

Answer :Ignored while preparing bank reconciliation statement.

Name of the report that covers Large Cash Transaction of above ? 10 lakhs/month is -


Options are :

  • STR
  • CTR
  • CCR
  • CBWT

Answer :CTR

The ascertainment of value of stocks from accounting records is known as-


Options are :

  • Periodic inventory
  • Scientific inventory
  • Perpetual inventory
  • Continuous stock
  • None of the above.

Answer :Perpetual inventory

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

Window dressing of Accounts means


Options are :

  • Presenting accounts in beautiful manner
  • Showing more losses to avoid Income tax
  • Showing more profits to attract Investment
  • All of the above

Answer :Showing more profits to attract Investment

Which one of the following statements is 'false'?


Options are :

  • LIFO method is suitable for items which are of non-perishable and bulky type.
  • Periodic inventory gives a continuous balance of stock in hand.
  • FIFO method does not correlate the ascertained from accounting records is known as perpetual inventory.
  • The system whereby stock valuation can be ascertained from accounting records is known as perpetual inventory.
  • A major objective of accounting for inventories is the proper determination of inventories of the purpose of financial statements.

Answer :Periodic inventory gives a continuous balance of stock in hand.

Which of the following is least likely a problem associated with the internal rate of return (IRR) method for making investment decisions?


Options are :

  • The IRR method determines the discount rate that sets the net present value of a project equal to zero.
  • An investment project may have more than one internal rate of return.
  • IRR and NPV criteria can give conflicting decisions for mutually exclusive projects.

Answer :The IRR method determines the discount rate that sets the net present value of a project equal to zero.

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

When goods are sent on consignment, credit is given to- 


Options are :

  • Purchase a/c
  • Consignment a/c
  • Consignee's a/c
  • Sales a/c
  • Goods sent on Consignment a/c

Answer :Goods sent on Consignment a/c

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