JAIIB Accounting and Finance for Bankers Mock Tests Set 9

In the bank reconciliation statement, when balance as per the cash book is taken as the starting point, then direct deposits from the customer of ? 2,500 in the bank will be


Options are :

  • Added
  • Subtracted
  • Ignored
  • None of the above

Answer :Added

Head Office and Regional/Zonal Offices are example of -


Options are :

  • Front Offices
  • Back Offices
  • Virtual Offices
  • Prominent Offices

Answer :Back Offices

Which accounting concept specifies the practice of crediting closing stock to the trading account?


Options are :

  • Cost
  • Realization
  • Going concern
  • Matching

Answer :Matching

JAIIB Legal & Regulatory Aspects Of Banking Mock Test Set 1

Books of Ekta, shows on 1st January 2010 furniture ? 20,000. During the year a part of the furniture whose book value on 1st January 2010 is ? 1,200 has been exchanged with another furniture by paying additional ? 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will be


Options are :

  • ? 18,508
  • ? 20,440
  • ? 18,396
  • ? 18,478

Answer :? 18,478

Amount spent to increasing the earning capacity is a ______ expenditure


Options are :

  • Capital
  • Revenue
  • Deferred revenue
  • Capital Loss

Answer :Capital

In cash book, all receipts are recorded on the ......... side and all payments are recorded on the .......... side


Options are :

  • debit, credit
  • credit, debit
  • debit, debit
  • credit, credit

Answer :debit, credit

JAIIB Accounting and Finance for Bankers Mock Tests Set 1

Acid  test  ratio  is  not  computed  as......  (i)  Current  Assets  divided  by  Current  Liabilities,  (ii) Current  Assets: Current  liabilities,  (iii)  Current  Assets  less  stocks  and  then  divided  by  current liabilities


Options are :

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

Answer :Only (i) and (ii)

Accounting standard AS 6 deals with


Options are :

  • Cash Flow statements
  • Valuation of Inventories
  • Depreciation Accounting
  • Accounting for investments

Answer :Depreciation Accounting

When the consignee receives the goods from the consigner


Options are :

  • Goods are debited to goods received on consignment account
  • No entry is to be passed
  • Credit consignor's personal account
  • None of the above.

Answer :No entry is to be passed

JAIIB Accounting and Finance for Bankers Mock Tests Set 10

During May, a firm’s inventory account included the following transactions:  May 1 Inventory 25 units @ ?4.00 May 12 Purchased 60 units @ ?4.20 May 16 Sold 40 units @ ?6.00 May 27 Purchased 30 units @ ?4.25 May 29 Sold 40 units @ ?6.10 Assuming periodic FIFO inventory costing, gross profit for May was:


Options are :

  • ?132.
  • ?147.
  • ?153.

Answer :?153.

Compute the compound interest on ? 4,000 for 1˝ years at 10% per annum compounded half- yearly.


Options are :

  • ?610.50
  • ?620.50
  • ?630.50
  • ?640.50

Answer :?630.50

The depreciation is calculated on the basis of (original cost / depreciated value) in case of (straight line method / written down value method). Which of the following does ,match:


Options are :

  • Original cost, written down value method
  • Depreciated cost, straight line method
  • Depreciated cost, both the methods
  • Original cost, straight line method

Answer :Original cost, straight line method

JAIIB Accounting and Finance for Bankers Mock Tests Set 11

Zero coupons bonds ......


Options are :

  • Do not carry any interest. It is issued at a lower price than its redemption value
  • Carry a fixed rate of interest payable at the time of redemption of the bonds
  • Bears zero risk
  • All of the above

Answer :Do not carry any interest. It is issued at a lower price than its redemption value

Which of the following error will be disclosed by the trial balance:


Options are :

  • Omitting to post an amount from a subsidiary book
  • Omitting to post the totals of subsidiary books into the ledger
  • Omission in writing the cash book balance in the trail balance
  • All the above

Answer :All the above

Bills for collection are shown


Options are :

  • in the balance sheet of a Bank under assets
  • in the balance sheet of a Bank under liabilities
  • in the balance sheet of a Bank under both assets and liabilities
  • in the notes forming part of balance sheet of a Bank under contingent liabilities

Answer :in the notes forming part of balance sheet of a Bank under contingent liabilities

JAIIB Accounting and Finance for Bankers Mock Tests Set 12

The items under ‘Deposits’ in Schedule 3 of the balance sheet of a Bank are shown in the following order.


Options are :

  • Savings bank deposits, Demand deposits, Term deposits
  • Demand deposits, Savings bank deposits, Term deposits
  • Term deposits, Demand deposits, Savings bank deposits
  • Demand deposits, Term deposits, Savings bank deposits

Answer :Demand deposits, Savings bank deposits, Term deposits

A Ltd. Company purchase machinery on 1st April, 2007 for ? 1,00,000. The depreciation on this machinery is charged @ 10% per annum on straight line method. On 30th September, 2009 machinery is sold for ?89,000. The profit or loss on sale of such machinery is:


Options are :

  • Profit of ? 12,000.
  • Loss of ? 12,000.
  • Profit of ? 14,000.
  • Loss of ? 6,000.

Answer :Profit of ? 14,000.

If current ratio of an organization is very high but acid test ratio is low, it indicates that the firm has......


Options are :

  • Very high fixed assets
  • Very high stock level
  • Very low investment in stocks
  • None of the above

Answer :Very high stock level

JAIIB Accounting and Finance for Bankers Mock Tests Set 13

Matching concept means:


Options are :

  • Assets equal to liabilities plus capital
  • Transactions are recorded at actual cost
  • Anticipate no profits but recognize all losses
  • Expenses should be matched with the revenue of the period

Answer :Expenses should be matched with the revenue of the period

According to which concept, the proprietor pays interest on drawings


Options are :

  • Accrual concept
  • Conservatism concept
  • Entity concept
  • Dual Aspect concept

Answer :Entity concept

The branches exclusively set up to cater the needs of individual customers are -


Options are :

  • Personal Banking branches
  • Commercial or Industrial Finance branches
  • Recovery branches
  • Forex branches

Answer :Personal Banking branches

JAIIB Accounting and Finance for Bankers Mock Tests Set 14

A bills payable account is ______ account and bills receivable account is ________ account:


Options are :

  • Real, real
  • Personal, personal
  • Real, personal
  • Personal, real

Answer :Personal, personal

A purchase of ? 1,870 by cheques has been wrongly posted in the cashbook as ? 1,780. This has the effect of


Options are :

  • Increasing the bank balance by ?90
  • Decreasing the bank balance by ?90
  • Increasing the bank balance by ?180
  • Decreasing the bank balance by ?180

Answer :Increasing the bank balance by ?90

To assess the financial position of the borrower the financial statements of the borrower should preferably be analyzed at least for......


Options are :

  • One year
  • Two years
  • Three years
  • Three years or for whatever period they are available whichever is minimum

Answer :Three years or for whatever period they are available whichever is minimum

JAIIB Accounting and Finance for Bankers Mock Tests Set 15

The branches exclusively set up to focus on reduction of non-performing assets of the bank


Options are :

  • Personal Banking branches
  • Commercial or Industrial Finance branches
  • Recovery branches
  • Forex branches

Answer :Recovery branches

The objectives of the PMLA Act,2002  are - I) The prevent banks from being used, intentionally or unintentionally, by criminals for Money Laundering or terrorist financing activities II) To enhance method for fraud Prevention III) To assign credit score to the borrowers (IV) To put in place a proper control mechanism for detecting and reporting suspicious transactions in accordance with the statutory and regulatory provisions;


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,IV

M/s Stationery Mart will debit the purchase of stationery to _______


Options are :

  • Purchases A/c
  • General Expenses A/c
  • Stationery A/c
  • None

Answer :Purchases A/c

JAIIB Accounting and Finance for Bankers Mock Tests Set 2

'Money Laundering’ is defined under _________ of PML Act.


Options are :

  • Section 3
  • Section 2
  • Section 4
  • Section 1

Answer :Section 3

Under which system, in every transaction, an account is debited and some other account is credited.


Options are :

  • Single Entry System
  • Double Entry System
  • Both a & b
  • Neither a nor b

Answer :Double Entry System

‘Money Laundering’ is the process used by criminals through which they make _______ money appear __________


Options are :

  • Clean, Dirty
  • Dirty, Clean
  • Easy, White
  • Black ,Easy

Answer :Dirty, Clean

JAIIB Accounting and Finance for Bankers Mock Tests Set 3

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