JAIIB Accounting and Finance for Bankers Mock Tests Set 8

The shortcomings of payback method are ...... (i) It does not take into account the time value of money, (ii) The choice of payback period is arbitrary, (iii) Only those cash flows are considered which fall in the payback period


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :(i), (ii) and (iii)

Annuity is defined as


Options are :

  • Equal cash flows at equal intervals forever
  • Equal cash flows at equal intervals for a specified period
  • Unequal cash flows at equal intervals for specified period
  • Unequal cash flows at equal intervals forever

Answer :Equal cash flows at equal intervals for a specified period

Which of the following are the advantages of NPV and IRR method? (i) They gives exact results,  (ii)  They  take  into  account  time value  of  money,  (iii)  They  focus  on  cash  flows  rather  than  on  accounting profits   


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (ii) and (iii)

JAIIB Accounting and Finance for Bankers Mock Tests Set 9

Which of the following does not follow Dual Aspect?


Options are :

  • Increase in one asset, decrease in other.
  • Increase in both asset and liability
  • Decrease in one asset, decrease in other
  • Increase in one asset & capital

Answer :Decrease in one asset, decrease in other

Present Value is defined as


Options are :

  • Future cash flows discounted to the present at an appropriate discount rate
  • Inverse of future cash flows
  • Present cash flows compounded into the future
  • Discounting of compounded future cash flows

Answer :Future cash flows discounted to the present at an appropriate discount rate

The yield to maturity is a rate of return which


Options are :

  • gives the current yield
  • Is the discount rate at which the present value, of the coupons and the final payment at face value, equals the current price
  • gives the return at maturity on the bond for the original holder
  • b or c

Answer :b or c

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Small items like Stapler, Calculator, etc. are not shown in books as Fixed Assets although they are used in business for long period due to:-


Options are :

  • Consistency Concept
  • Materially Concept
  • Accrual Concept
  • Cost Concept

Answer :Materially Concept

What are some of the benefits of benefits from CST(Cheque Truncation System)? I) Decrease in use of paper cheques II) Increased revenue for the banks III) Superior verification and reconciliation process IV) Shorter clearing cycle


Options are :

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

Answer :Only III and IV

Heath Co.’s current ratio is 4:1. Which of the following transactions would normally increase its current ratio?


Options are :

  • Purchasing inventory on account.
  • Selling inventory on account.
  • Collecting an account receivable.
  • Purchasing machinery for cash.

Answer :Selling inventory on account.

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

As per ___________  of the Banking Regulation Act, 1949, banks can engage in certain classes of business which are incidental to the business of banking like Locker, Safe custody, Collection of cheques etc.


Options are :

  • Section 6
  • Section 3
  • Section 12
  • Section 25

Answer :Section 6

The date of maturity of bill is 10th October, 2009. The Government of India suddenly declared 10th October, 2009 as the holiday under the Negotiable Instruments Act, then the bill will mature on


Options are :

  • 9th October, 2009
  • 10th October, 2009.
  • 12th October, 2009.
  • 11th October, 2009.

Answer :11th October, 2009.

Which of the following investment rules does not use the time value of the money concept?


Options are :

  • The payback period
  • Internal rate of return
  • Net present value
  • All of the above use the time value concept

Answer :The payback period

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

The Banking Regulation Act, 1949 ______________ defines a banker as a person, undertaking business of banking.


Options are :

  • Section 6
  • Section 5(c)
  • Section 2 (d)
  • Section 3(c)

Answer :Section 5(c)

Business enterprise is a separate identity apart from its owner. Accountant should treat a business as distinct from its owner. This concept is known as:


Options are :

  • Money Measurement Concept
  • Matching Concept
  • Entity Concept
  • Dual Aspect Concept

Answer :Entity Concept

The Market price of good declined than the cost price. Then the concept that plays a key role is __


Options are :

  • Materiality
  • Going concern concept
  • Realization
  • Consistency

Answer :Realization

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

On April 2, 2010, Union Co. purchased a machine for ?264,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On April 2, 2013, Union determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of ?24,000. An accounting change was made in 2013 to reflect the additional data. The accumulated depreciation for this machine should have a balance at march 31, 2014, of


Options are :

  • ?176,000
  • ?160,000
  • ?154,000
  • ?146,000

Answer :?146,000

Solvency  Ratio  is  not  ......  (i)  Current  Assets/Liabilities,  (ii)  Total  tangible  assets/outside liabilities, (iii) Total net worth/total assets


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (i) and (iii)

While recording transactions, all possible losses must be taken into consideration but all anticipated profit should be ignored. This is called as


Options are :

  • Convention of Conservatism
  • Principle of Prudence
  • Both a & b
  • Neither a nor b

Answer :Both a & b

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

If  there  is  a  surplus  of  cash  in  cash  flow  statement,  it  is  not  a  ......  (i)  Satisfactory  position,  (ii) Strong position, (iii) Weak position


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (ii) and (iii)

As per __________ of B R Act, a bank is prohibited from buying, selling or dealing in goods expect in connection with the realization of a security held by it or for collection or negotiating bills of exchange.


Options are :

  • Section 6
  • Section 8
  • Section 2(d)
  • Section 3(c)

Answer :Section 8

Provision for discount on debtors is calculated on the amount of debtors


Options are :

  • Before deducting provision for doubtful debts.
  • After deducting provision for doubtful debts.
  • Before deducting actual debts and provision for doubtful debts.
  • After adding actual bad and doubtful debts.

Answer :After deducting provision for doubtful debts.

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

XYZ Ltd. follows the written down value method for depreciating machinery year after year due to________.


Options are :

  • consistency
  • convenience
  • comparability
  • conservatism

Answer :consistency

What are the two main functions of the bank?


Options are :

  • Accepting Deposits
  • Granting Loans and Advances
  • Only a
  • Both a and b

Answer :Both a and b

Tangible Net worth is calculated as follows......


Options are :

  • Capital plus reserves
  • Capital plus reserves minus intangible assets
  • Capital plus fictitious assets plus reserves minus intangible assets
  • Capital plus reserve minus fictitious assets and intangible assets

Answer :Capital plus reserve minus fictitious assets and intangible assets

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

The balance of furniture and fixtures as on 1st April, 2009 was ? 10,000. Furniture of ?5,000 was purchased on 1st October, 2009. Depreciation is charged @ 10% p.a. on W.D.V. method. The depreciation for the year ended 31st March, 2010 will be _____


Options are :

  • ?1,500
  • ?1,250
  • ?1,750
  • None of the above

Answer :?1,250

Window  dressing  of  current  ratio  is  not  possible  by......  (i)  Overvaluing  the  inventory,  (ii) Depositing cash in hand in bank, (iii) Converting cash into inventory


Options are :

  • Only (i) and (ii)
  • Only (i) and (iii)
  • Only (ii) and (iii)
  • (i), (ii) and (iii)

Answer :Only (ii) and (iii)

Human resources can’t be shown in Balance Sheet because of _________ concept.


Options are :

  • realization
  • conservatism
  • going concern
  • money measurement.

Answer :money measurement.

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

What are some of Para Banking Services performed by Banks?  I) Equipment Leasing, Hire Purchase and Factoring Services II) Mutual fund Business III) Retailing of Government Securities (IV) Insurance Business


Options are :

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

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

Accounting assumes that the business will continue to operate for a long time in future. This concept is called as


Options are :

  • Going concern concept
  • Entity going concept
  • Both a & b
  • Neither a nor b

Answer :Both a & b

“For every debit there is an equivalent credit” this statement demonstrates:


Options are :

  • Matching concept
  • Cost concept
  • Money Measurement concept
  • Dual aspect concept

Answer :Dual aspect concept

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

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