JAIIB-Accounting and Finance for Bankers1. Commission received in advance is of the nature of a. AReal account b. Personal account c. Nominal account d. Intangible account 2. A money lender lent some amount in simple interest of @ 8% p.a. After 18 months, he got Rs. 14000 in full payment of interest and principal amount. Find out the sum lent by the money lender. a. Rs. 11500 b. Rs. 12000 c. Rs. 12500 d. Rs. 13000 3. What annual rate of simple interest was paid if Rs. 10000 earned Rs. 1100 as interest in 2 Years and 9 months? a. 2% b. 3% c. 4% d. 5% 4. Sequence of payments made at regular periods over a given time interval is called a. Principal b. Interest c. Annuity d. None of the above 5. Due to a fall in the rate of interest from 11% to 10.5%, a money-lender's yearly income from interest falls by Rs. 240. What is his principal amount? a. Rs. 42,800 b. Rs. 41,600 c. Rs. 44,600 d. Rs. 48,000 6. Under written down value method of Depn., the W D V of the asset is always a. equal to zero b. < zero c. > zero d. None of these 7. In how many years will a sum of money double itself at 8% per annum compound Interest? a. 8 Years b. 8 Years 6 months. www.guruji24.com Page 1 JAIIB-Accounting and Finance for Bankers c. 9 Years d. 9 Years 6 months 8. Which of the following is not true a. Depreciation is an expense charged to the P & L a/c. b. Depreciation is not a part of the operating costs. c. Assets that are depreciated are tangible assets. d. Depreciation is like an insurance expense. 9. Which one is not among the three pillars of BASEL II ? a. Minimum Capital Requirement b. Supervisory Review Process c. Risk Based Supervision d. Market Discipline 10. At a certain rate of simple interest, a sum doubles itself in 5 years. It will be four times of Itself in a. 10 Years b. 15 Years c. 20 Years d. 25 Years 11. According to IRR, undertake those investments that has highest IRR, provided the IRR is ...... the cost of capital a. Greater than b. Equal to c. Less Than d. None of these 12. What is the principal amount which earns Rs. 1320 as compound interest for the second year @ 10% p.a.? a. Rs. 10,000 b. Rs. 12,000 c. Rs. 14,000 d. Rs. 16,000 13. A sum of money doubles itself in 16 years at simple interest with yearly rate of... a. 5.25 % b. 6.25 % c. 7.25 % d. 8.25 % www.guruji24.com Page 2 A sum of money at simple interest amounts to Rs.400 is lent out into two parts. 25.JAIIB-Accounting and Finance for Bankers 14..a. Rs.guruji24. 2.116. Third Working Day www. Find the sum and the rate of interest.. Secured b.com Page 3 .800 in 2 years and to Rs. A sum of Rs. None of these 17.. Rs. Rs.. Second Working Day d.. a. 2.250 in 5 years. 12. If the total annual income from interest is Rs. Same Day b. a. Which is not one of the approaches proposed for measurement of operational risks ? a. 3.800 c. Rs. Private Sector Companies can issue . one at 12% p. 10.5% p. the money lent at 12% is a. Internal Rating Based Approach 18. Rs. None of these 16. Unsecured c. 3. straight line method b. Rs.400 15.000.. 6% c.500. 3. Any one of the above d. and the other at 12. Either positive or Negative d.a. In SPOT.400 d.800 b. Negative c.500. Next Day c. Standardised Approach c. Double Declining Balance Method d. Advanced Measurement d. Rs.. Basic Indicator Approach b. Rs. 11. The method in which depreciation rate is constant is a. 2.. 6% 19. undertake those investments for which the NPV is a. 3.000. According to NPV. bonds. 5% b. 13.. Positive b. Accelerated Depriciation 20. Declining Balance Method c. the exchange of currencies take place on a. 5% d. . None of these www. Coupon Rate d.com Page 4 . None of these 26. Yield-to-Maturity b. Redemption Value 24.. Spot b. Forward c. Declining Balance Method c. Arm's Length Price c. Costlier b. Deal Price d. None of these 22. The price at which two unrelated and non-desperate parties would agree to a transaction is called a. Arbitrage d. a. A bond carries a specific rate of interest is called as. it is a. Debt which is due to us is called. Cheaper c. a. is called as a. The asset lose an equal amount of value each year in case of a. None of the above 25. Both d. Any of the above d. Operation of borrowing in one centre and lending in another at higher rate...guruji24. Dividend Payments c. Transfer Pricing b. Interest Payments on Debts b. Which is not Tax deductible? a. Passive c. Face Value c. None of these 23. Equal d. Active b. straight line method b. Accelerated Depriciation 27.JAIIB-Accounting and Finance for Bankers 21. Double Declining Balance Method d. When a currency is at premium in future or for a future value date. Forward 31. SPOT b. d. Cheaper c. Double-declining balance b. Rs. c. In London market are US $1=Euros 0. Non of these. To reduce tax burden. If the rates in Mumbai are US $1=Rs. Allocation. TOM c. None of these www.56.38 d. Equal d.JAIIB-Accounting and Finance for Bankers 28. Rs. d. To provide funds for replacement of fixed assets. Next Day c. Depreciation is a process of: a. When a currency is at discount in future or for a future value date.50 33. Both valuation and allocation. The exchange of currencies takes place on the date of the deal in a.53 c. Same Day b. The main objective of providing depreciation is a. it is a. In TOM. Sum-of-the-years' digits d. To allocate true profit. Cash d. Rs. b.56. To show the true financial position in the balance sheet.56.guruji24. 34.7580 Therefore for one Euro we will get a. Third Working Day 32.45 b. Straight-line c. Which of the following depreciation methods is NOT an accelerated method? a.42. Costlier b. Rs. 29.com Page 5 .850. Second Working Day d.56. Valuation. b. None of these 30. the exchange of currencies take place on a. c. Direct Quote b. 50. At 10% p. 2 year discount factor is a. 115. If the straight line depreciation method is used. 170. Rs. 1.000 salvage value at the end of 5 years. what is the book value of the equipment at the end of 2 years? a.000 b. Chain Rule d.com Page 6 . Rs. Rs. Spot d.826 b.909 www.000 c. 100.a. 0. 0. Forward 40. 200. 121. Rs.000 a.. 140.545 41. Face Value c.000 b. TOM b.000 37. "cash" is also called as a.guruji24.000 today has Rs. Market Value b.000 d. Arbitrage 38. The concept of deriving the rate of currency A in terms of currency C through currency B is called as a. A capital equipment costing Rs. The value which bond holder gets on maturity is called as. Indirect Quote c. Coupon Rate c. Rate of return earned by an investor who purchases a bond and holds it till maturity is called as a. 200.. Intrinsic Value d. Redemption Value 36. YTM d. Redemption Value 39.00 c.000 to be received after 1 year at 10%? a. 50. a.500 c. In exchange of currencies deal. Intrinsic Value b. Ready c. 104.JAIIB-Accounting and Finance for Bankers 35. 110. What is the Present Value of Rs. direct & linear b. If 1 year discount is 0. Annuity is defined as a. Equal cash flows at equal intervals forever b.JAIIB-Accounting and Finance for Bankers d. 20% c. employee www. what is the discount rate? a. The yield to maturity is a rate of return which a.guruji24. inverse & linear c. Present Value is defined as a. General Market Risk d. creditor d. Is the discount rate at which the present value. 10% b.com Page 7 . shareholder b. Equal cash flows at equal intervals for a specified period c. Inverse of future cash flows c. Unequal cash flows at equal intervals forever 46. Unequal cash flows at equal intervals for specified period d. b or c 48. 0. of the coupons and the final payment at face value. 30% d. equals the current price c. Present cash flows compounded into the future d. Both b & c 43. Specific Risk c. A bond holder of a company has one of the following relationship with It. Identify a. The relationship between the bond prices and interest rates is one of the Following a. depositor c. Discounting of compounded future cash flows 47.8333.. direct and curvilinear d. gives the return at maturity on the bond for the original holder d. Future cash flows discounted to the present at an appropriate discount rate b. Credit Risk b.814 42. 15% 44. gives the current yield b. a. Minimum capital requirement is expressed in terms of.. no relationship 45. Principle of Prudence c. The payback period b.... Neither a nor b 54. compounded rate d. 5 Crores c. 210. Ledger. Rate is 10% on WDV.. Convention of Conservatism b. 50 Crores d... Ledger c. All of the above use the time value concept 51. 218. What is the book value of car after 3 years ? a.. Which of the following investment rules does not use the time value of the money concept? a.000. coupon rate c. 500 Crores 53. yield to maturity b. Net present value d. all possible losses must be taken into consideration but all anticipated profit should be ignored. Journal..000 b. current yield 52.. whose turnover for the accounting period exceeds a. None of these 55.... Italian Method of accounting is also known as a. 300. and then they are posted to the . What does the rate of return equal to if interest rates do not change during the pendency of the bond ? a. This is called as a.. Accounting Standards are mandatory for the enterprises. Any one of the above d... Transaction are first recorded in the . 50 Lakhs b. Cost of Car is Rs. Depn.JAIIB-Accounting and Finance for Bankers 49..guruji24. Internal rate of return c. 220. Journal b.00 c. While recording transactions. 214..300 d. a. Double entry book-keeping www.. Both a & b d. Cose Accounting b.com Page 8 .700 50. . Accounting Standards c.. Financial Accounting d. Entity going concept c. Accounting Rules b. All the above 61.. all receipts are recorded on the . In cash book.....com Page 9 ... Both a & b d... Generally Adopted Accounting Principles 59. debit... Common non-traditional methods available for determining arm's length price is/are a. Both a and b d. Recording b. debit. This concept is called as a.guruji24. None of these 57. Governmental Accepted Accounting Principles b... credit b. credit.. Classifying c. Single Entry System b. Summarising d... Profit Spilit Method b. Generally Accepted Accounting Principles c. None of these 60. debit c. The set of rules for recording of events in accounts are called as a. credit 62. Going concern concept b. debit d. is time saving and economical a. Neither a nor b 58.. Governmental Adopted Accounting Principles d. Accounting laws d.JAIIB-Accounting and Finance for Bankers c... credit.. Transactional Net Margin Method c. Double Entry System www. side a. Accounting cycle includes a..... side and all payments are recorded on the ... None of these 56... GAAP stands for a. Accounting assumes that the business will continue to operate for a long time in future. None of these 67.. Any one of the above d. Accounting for investments 64. Personal Account b... Neither a nor b 69. Nominal Account d. Real Account c. Accounting standard AS 6 deals with a. Double Entry System c. 6 b. Under which system. Valuation of Inventories c. Cash Flow statements b. Commission received is a a. Personal Account b. Accounts generally prepared for .JAIIB-Accounting and Finance for Bankers c.guruji24. 12 d. Valuation of Inventories c. Depreciation Accounting d. Both a & b d.com Page 10 . Accounting standard AS 3 deals with a. 18 68. Impersonal Accounts c. months a. Both a & b d. None of these 66. Real Account c. Depreciation Accounting www... None of these 65. Bills receivable is a a. Nominal Account d. Neither a nor b 63. in every transaction. an account is debited and some other account is credited. a. 9 c. Both Real Accounts and Nominal Accounts are a. Personal Accounts b. Cash Flow statements b. Single Entry System b.. . Two accounts b.com Page 11 . Real. Two sides of the same account c. A person who owes money to the firm is called a.JAIIB-Accounting and Finance for Bankers d. personal. For nominal accounts. Proprietor's A/c b. either a or b d. reverse entry b. contra entry d. Where does the Net Profit appear in the balance sheet? a.. b.. one personal and one real account 71... none 75. liabilities side b. double entry 74.debit expenses and losses and Credit. a.a/c.guruji24. assets side c... Shareholders d.. the entry is balanced with a corresponding entry.. Accounting for investments 70. In double entry. Both B and D 73.. d. Capital A/c d.. the fundamental rule of Debit and credit is. In Double entry system of Book Keeping every business transaction affects a. Cash A/c c. a. c. adjusting entry c. Debtor c. Where a withdrawal of cash from business by the proprietor be credited? a. Owner 72. what goes out c.. the giver b. none www. Capital account is a . Nominal.. Creditor b. The same account on two different dates d. incomes and gains d.. Drawings 76. which is called a.. . in a.00.JAIIB-Accounting and Finance for Bankers 77. What is Nominal account? a. an account of each person or firm with whom the trader deals b. Capital at the start of business-Rs. Nama.00. Rs. the old method of accounting used in India. 12. Personal Account b. Either Debit or Credit d. Intangible account 81. All of these 79.6. 6. Marwari c. a.2. Rs. Intangibles www.. Mahajani b. Then Capital at the end of the year. "Debit all expenses and losses and credit all incomes and gains"..000.00. 10.000 d.000 c. Nominal Account. d. Subsidiary book d. all 83. Prepaid expenses are shown as a.. Rs.000 and liabilities-Rs. is also called as a. Real account b.com Page 12 .. worth of the Assets-Rs. Rs.00.00. 8. Deshi d.000 b. none 78.00.10. Journal b. None of these 80. Salaries outstanding account belongs to the category of a. At the end of the year.guruji24. Personal account c.000 82. an account of each property or possession dealt in by the trader in his business d. Credit c. an account of each head of expense or source of income c. Real Account c.. Debit b. Cash book c.000.00. Nominal account d.. Following is known as the book of prime entry a. AS 28 www. Bank. then there is a . Intangible account 86. The columns available in a three columnar cash book are.... Valuation of Inventories c. Cash.JAIIB-Accounting and Finance for Bankers 84. AS 19 c. Debit in Nominal Account 85.. Discount Received. Cash. Rebate on bills discounted account is of the nature of a.com Page 13 . 64 c. To determine how long an investment will be double.. AS 26 d. Real account b. 72 d. 74 87.. Cash Flow statements b. Nominal account d.... Real account b. Intangible Assets are dealt in Accounting Standard a. Cash. a. Rent prepaid account is of the nature of a. Accounting standard AS 13 deals with a. Personal account c.. Debit in Real Account c. Personal account c. Credit in Real Account b. Discount. AS 9 b. a. Value of the asset is increased or the business has acquired more of that asset.. Nominal account d.guruji24. Credit in Nominal Account d. Accounting for investments 89. you have to divide number .. Intangible account 88.. Depreciation Accounting d. 62 b. None of these 90.. Bank b.. by annual rate of interest.. Bank d. Discount Paid c. a. Profit c. 3 b.com Page 14 . 6 93. 4 c. Real account b... Asset d. Patents right account is of the nature of a. Personal account c. 5 d. Intangible account 94. National Advisory Committee b. Accounting Standards Board is constituted by a. All of them www. Law c. AS 9 b. Columnar petty cash book c. AS 19 c.. Two columnar petty cash book d. AS 26 d... As per accounting standards which of the following is not a preferred method a. Balance in the petty cash book is a. None of these 92.. columns a. AS 28 96.. WACM d. Revenue Recognition is dealt in Accounting Standard a. LIFO b. Liability 95. Which is not a type of petty cash book are a. Nominal account d. FIFO c. Expense b. Institute of Chartered Accountants of India d. Professional Accounting Bodies 97. Simple petty cash book b.guruji24.JAIIB-Accounting and Finance for Bankers 91. A journal generally has . d. Freight expenses for moving new machinery to factory is a. c. 102. The amount brought by the proprietor of the business is credited to Proprietor's a/c Cash a/c Capital a/c Drawings a/c 101. Rent account credited instead of debit.. Revenue expenses b. b. b. c. b. Discount on d.purchases a. b. 104.. 103. Invoice journal is used for recording. Which of the following is not a deferred revenue expenditure a. d. For an expense to be classified as revenue or capital depends on Kind of expense Duration of the benefit of the expenditure Effect on revenue earning capacity All of the above a.guruji24. Which of the following will not affect Trial Balance Goods sold on credit not recorded in books. In LIFO method of inventory valuation Issue of stocks to production is at latest price Closing stock is at latest price Both a & b Neither a nor b a. c. Cost of goods sold is Opening stock + purchases + closing stock Opening stock + purchases – closing stock Opening stock – purchases + closing stock None of above a. d. c. d. c.. a. Deferred revenue expenditure c. b. Credit c. 105. None of the above 99. Salary debited to the extent ½ the amount. Preliminary expenses for setting up a company. www. Overstating of sales register. All 100. a. Capital expenditure d.com Page 15 . Cash b.JAIIB-Accounting and Finance for Bankers 98. d. Goods lost in transit is Nominal loss Abnormal loss Casual loss Conditional loss a.40.com Page 16 . c.20000 to Suresh is posted to his credit. c. c. totalling or balancing of an account is Error of commission Error of omission Error of principle Compensating error a. c. This loss is 110. Noting charges are Paid to bank for dishonour Paid to drawer for dishonour Paid to notary public for recording dishonour None of the above. d. d. then rectification is Credit Suresh to the extent of Rs. b. d. contingent loss Nominal loss Abnormal loss Casual loss www.000 Debit Suresh to the extent of Rs. c. Cost of preparing project report 106. c. Amount raised through Rights issue. Due to heavy flooding a truck carrying consignment goods sinks. d.JAIIB-Accounting and Finance for Bankers b. b. A clerical error committed while posting. a. Sale of Rs. b. 109. called a. d. b. 108.000 Credit Suresh to the extent of Rs. b. d. Huge sales promotion expenditure in launch of new product d.20000 111. Cost of replacement of defective parts of the machinery is Capital expenditure Revenue expenditure Deferred revenue expenditure None of these a.20. c. b.40.000 Debit Suresh to the extent of Rs. a. 107.guruji24. (5)-(b) 113. (2)-(d). b. c. b. Accounts in personal names indicative of trusteeship capacity of a/c holders Can be opened after obtaining trust deed.. Capital expenditure Revenue expenditure Deferred revenue expenditure None of the above a.com Page 17 . c. Match the following pairs: Column 'A' . Match the following pairs: Column 'A' . Labour welfare expenses is . b. 116. 115. The overhauling expenses of machines is. (3)-(e). Legal expenses incurred in connection with raising debenture loans is Capital Expenditure Revenue Expenditure Deferred Revenue Expenditure None a. (4)-(a). d. (4)-(c). Can be opened after permission of ho. Should not be opened. 117.Column 'B' (1) (2) (3) (4) (5) Trial balance Net trial balance Gross trial balance Suspense a/c Real a/c (a) Difference in trial balance (b) Always shows debit balance (c) Debit or Credit Balances (d) Debit and credit totals (e) Statement of balances of ledger accounts (l)-(c)... Revenue expenditure c.JAIIB-Accounting and Finance for Bankers 112. d. c. d. (3)-(d). a. (2)-(e).guruji24.. (5)-(b) 114. Capital expenditure b.Column 'B' (1) (2) (3) (4) (5) Error of omission Suspense ale Error of principle Two sided errors Posting on wrong side (a) Not disclosed by trial balance (b) Disclosed by trial balance (c) Rectified by passing journal entries (d) Debit or credit balance (e) Accounting rules not followed (l)-(a). a. Can be opened after permission of zo. Deferred revenue expenditure www. Capital expenditure .Rs. c.15. Omission d. what will be the total of credit side? a. but no entry was passed.. Revenue expenditure .Rs. Rs 15. 10000 were acquired.JAIIB-Accounting and Finance for Bankers d.000 119. The closing debit balance falls on the Debit Side Credit Side Either Debit or Credit Side None of these a.00.Rs. Rs. 122. Capital expenditure .14..000 was omitted from recording in the Sales Book.Rs. Goods worth Rs. Capital expenditure Revenue expenditure Deferred revenue expenditure None of the above 120.60. How much is the Capital or/and Revenue Expenditure in "Fixtures of the book value of Rs.000 b.com Page 18 . A sale of Rs. Commission c.6000 d.10000 and Revenue expenditure . b. Rs. Principle 123. Thomas were taken into stock.20.000 returned by Mr. d.000. c.000 c. Presently.000 d. 15. Capital expenditure .Rs. Expenditure incurred on issue of equity shares is Revenue expenditure Capital expenditure Deferred capital expenditure None a.10000 www. a.Rs. Rs. The removal of stock from old works to new site is..16000 c. This is an error of . c.guruji24. b..40. a. a. b. 20000 were sold off at Rs.6000 and Revenue expenditure . d. None of the above 118. 20.16000 b. Compensation b. d. 5. 121. 14000 and new fixtures of the value of Rs. The existing total of debit side of the trial balance is Rs.80.14. Rs. find out the balance as per KRB Bank’s books. Both Seller and Hire-Purchaser can claim depreciation. Neither Seller and Hire-Purchaser can claim depreciation. a. b. d.guruji24. Which of the following is true for leasing Lessor only can claim depreciation. d. 129. An expenditure charged to P&L a/c over a period of 5 to 6 years is an example a. a. 126. From the above particulars.com Page 19 . Lessee only can claim depreciation. Bank charges of Rs. 130. On 31st December.2006 amounted to Rs. d..21500 d. Bank column of cash book of company showed a debit balance of Rs. b. of .. a. Both lessor and lessee can claim depreciation. An expenditure is a revenue expenditure because . The amount is very small The amount is paid in instalments It is intended to benefit in the current period It is intended to benefit in the future period a. Which one is also called as "Liquidity Ratios"? Profitability Ratios Turnover Ratios Short-term Solvency Ratios Long-term Solvency Ratios 127. Neither lessor and lessee can claim depreciation.25500 c. 26000. X co . a. d. Which of the following is true for Hire-Purchase Seller only can claim depreciation. b. c.22500 125. c. c. b. 500 were debited by the bank but no entry was made by the accountant of the company.. Revenue expenditure Capital expenditure Deferred revenue expenditure All of the above Purchase of machinery is . Rs.. c. Rs. d. 2013. Capital expenditure www.. 128.4000.JAIIB-Accounting and Finance for Bankers 124.was maintaining account with KRB Bank Ltd.30500 b.. a. Cheques deposited into the bank but not credited before 31st December. b. Rs. Hire-Purchaser only can claim depreciation. c. 135. d.67 a. 137. a.5 1 2 0. None of the above 131. d. d. b. c.67 132. dishonouring the bill making payment of the bill after the due date making payment of the bill before the due date making payment of the bill on the due date a. d. 136. Ideal ratio for "Acid test ratio" is 0. b. Deferred revenue expenditure d. b. a. b. 133.JAIIB-Accounting and Finance for Bankers b. b. c. b. d. Which is not a Solvency Ratio? Debt-Equity Ratio Current Ratio Debtor's Turnover Ratio Liquidity Ratio Acid test ratio is also called as Quick Ratio Liquidity Ratio Both a and b Neither a not b a. d. c...5 1 2 0. c. 134. Retiring a bill under rebate means. Revenue expenditure c. www. c. c. d. c. Ideal ratio for "Fixed Asset Ratio" is 0.com Page 20 .guruji24. In FIFO method of inventory valuation Closing stock is at latest price Issue of stocks to production is at earliest price Both a & b Neither a nor b a. b. Which one is not the uses of Accounting Ratios? Facilitate Inter-Firm comparison Facilitate Intra-Firm comparison Help in Planning None of these a. b. c. c. There is no relevance between the two None of the above www. d.. 142. b. c... Debit side of the pass book. d. d. Consignee's Account is a. b. c. d. b. Consignment Account is of the nature of a.. a. d. For payment of noting charges to the notary public.. "Return on Investment" is also called as Overall Profitability Ratio Earnings per Share Gross Profit Ratio Net Profit Ratio a. d. b.guruji24. c. of the a. Real Account Personal Account Representative Personal Account Nominal Account a. a. Noting charges a/c is debited Bank a/c is debited Noting charges a/c is credited Cash a/c is credited 139.com Page 21 . b. d. Operating Assets Fixed Assets Current Assets Liquid assets 144...JAIIB-Accounting and Finance for Bankers 138. c. c. b. The Pass book of an account holder is the copy of the bank columns in the cash book of the account holder the relevant account in the books of a bank the cash column in the cash book of a customer none a. Real Account Personal Account Representative Personal Account Nominal Account a. Assets kept for short term for converting into cash or for resale are called as. Undercasting of the credit side of Cash Book has the same effect as overcasting 143. Credit side of the pass book. 141. 140.. c. on presentationon counter or in clearing 146.guruji24. c. b...000 b.JAIIB-Accounting and Finance for Bankers 145.000. Subscription shown in the credit side of income & Expenditure a/c will be a.000 www.. Principal and agent Seller and buyer Bailor and bailee Creditor and debtor 147. b. can decrease or increase 150. d. c.50. Rs. decrease c. Maker Payee Bank None of above a. a. When an entry is passed on credit side of passbook or on debit side of Cash book.50000 is Capital expenditure Revenue expenditure Deferred revenue expenditure None of these a. Entries for issuance of cheques are made immediately by the customer to the credit of cash book.but the bank debits the customer account a. immediately b. Loss of goods due to fire for Rs. on presentation over counter c.50.000 c. Rs. 3. Rs. b. 149. on presentation in clearing d. increase b. 50. d.00. Debit balance in the cash books means Overdraft Favourable balance Balancing error None of the above 151. 3.000 and received During the current year Rs. b. 3.com Page 22 . The payment of Promissory Note is made by its. has no effect d. d. The relationship between the Consignor and Consignee is that of.. the bank balance a. c. Subscription outstanding of a club during the previous year was Rs. a. d. 50. 148. Revenue expenditure as It is recurring Amount involved is small It is revenue loss arising out of business operation None of the above a. widely followed method of inventory valuation is FIFO weighted average adjusted selling price None of the above 153. Rs.00. In retail business.Capital expenditure as It is non-recurring Benefit is of long duration Increases earning capital None of the above a. Revenue expenditure b.00.. it is a. Wages paid for installation of machinery Rs. c. 25. a. The test of 'objectivity' and 'verifiability' is satisfied by valuing stock at historical cost current replacement price net realisable value None of the above 158. d. d. 500 . None of the above 157. c.000 152.Capital expenditure as It is non-recurring It is necessary to put the asset in working condition It is incidental of acquiring a new asset None of the above a. 155. The rate of discount on share cannot exceed. 154.com Page 23 .000 . b. www. b. d. The benefit of an expenditure incurred is of long duration and its purpose is to increase the earning capacity of the business. b. 4.JAIIB-Accounting and Finance for Bankers d. Rs.guruji24. b. c. Capital expenditure c. Payment for purchase of car. d. Deferred capital expenditure d. Loss of goods due to fire. d. Rs. a. 156. c. c. 4. b. 5% 8% 10% 12% a. c. b. d..000 . A company incorporated out side India but has a place of business in india. The cost formulae recommended by Accounting Standard 2 for valuation of inventories are a. is termed as . Professional fees paid in connection with acquisition of lease hold premises is a Capital expenditure Deferred revenue expenditure Revenue expenditure Current expenditure 161. None of the above 162. Calls in advance Calls in arrear 163. 164.. d. FIFO or weighted average b.. b.JAIIB-Accounting and Finance for Bankers 159.guruji24. The ascertainment of value of stock from accounting record is known as.. Statutory Company b. Historical cost concepts are reduced to net realisable value because of the accounting principle of. consistency b.. d. Standard cost c. c. b. conservatism c.. a. a. The difference between subscribed capital and called-up capital is called. c.. Foreign Company c. c.. b. continuous stock taking periodic inventory perpetual inventory None of the above a. Rights shares mean the shares which are.. None of the above 160. a. d.. b. a.com Page 24 . Issued to directors of the company Issued for a consideration other than cash Offered to the exiting shareholders Issued to promoters of the company for their services. c. Paid up capital Uncalled capital. Holding Company d. Subsidiary Company 165.. www.. LIFO or latest purchase price d. a. realisation d. d. a.. b.. d.guruji24. Memoradum of Association Articles of Association Prospectus All of the above. Premium received on issue of shares is shown in .. Discount on issue of shares is a .com Page 25 . b. c... c. Assets side of Balance Sheet Liabilities side of balance sheet Debit side of P & L a/c Credit side of P & L a/c 167. a. c. Revenue loss Capital loss Deferred revenue expenditure. c. b. c. 169. if income is more is called Net Revenue Profit Surplus All of the above a. b. d.. www. c. d. c.. 172. d.. Revenue and capital loss both a.. d. Active Partners are also called as Nominal Partners Quasi Partners Sleeping Partners Working Partners a. The main object of permitting the company to issue non-voting equity shares is To give higher dividend To give perference on re-payment To raise resources without losing management control All of the above a... d. b. Difference between income and expenses. Incorporation Commencing the business Income-tax department None of the above a.. . b.JAIIB-Accounting and Finance for Bankers 166. 168. A company comes into existence when it gets the certificate of. is called the Charter of the company. 171.. 170. b.. d. . Any one of the two 174. the accumulated profits and losses are shared by the partner in .9. d. 177.10. For a bank... Partner's Capital A/c b.10. sacrifice ratio d.000 www. Gold appears under Other assets Investments Fixed assets None of these Assets-Rs.9. a.JAIIB-Accounting and Finance for Bankers 173. d.000. b.000.. old ratio c.40. Fees Commission Interest Dividend a.000. The entry for this will be a. for each partner..000.1.60. 179. a.9.. Rs.000. b. a. c. Debit Office Equipment a/c Rs..000.000 b.. Debit Purchases a/c Rs. gaining ratio 178. then Capital.000 at a discounted price of Rs. Credit Cash a/c Rs. c.9.9. Partner's Current A/c c. c.10.9. Credit Discount Received Rs..1..000....000. d. Credit Cash a/c Rs.guruji24. Rs. b. 176. Shareholders get . Rebate on bills discounted is an item of . the following account/s is/are maintained.000. Credit Cash a/c Rs. Credit Discount Received Rs.. a. d. Credit Cash a/c Rs.1.9. Debit Purchases a/c Rs.. Both a & b d. Under Fluctuating Capital Method. an income an expenditure an accrued income an income received in Advance 175. d.3. Debit Office Equipment a/c Rs.000. Liabilities-Rs.80.20.4. c.com Page 26 .000. c. b.. In the event of death of a partner.000.000. new ratio b. Purchased a printer having price as Rs.1. a. .banking asset is . Application software is concerned with . d..1. a. Rs.60. b.facebook. c. Rs. b...com www.4.000 180. share Allotment Account is . Control unit and logical unit Control unit.. Real Account Personal Account Nominal Account Asset Account 181.guruji24. The central processing unit in a computer comprises of the following ..000 d. 184. participating and non-convertible cumulative. d. the programming used to control input unit the programming used to control output unit the programming to execute specific functions the programming used to control the operations of the control unit a. d. b. c. Fixture and Fittings Office equipment Money at call and short notice Asset acquired from the debtors in satisfaction of claims against them a.. Input unit and output unit Control unit. Cumulative. 182.80. non-participating and non-convertible Non-cumulative.com Page 27 .JAIIB-Accounting and Finance for Bankers c.. b. logical unit and storage unit a. d.. Unless otherwise stated. b. non participating and non-nonconvertible a. c. a preference share is always deemed to be . b. 183. Furniture. A non .com/pages/guruji24com/1546495772269823 For more Materials or Queries E-mail us on – guruji24contact@gmail.. Assets side of Balance Sheet Liabilities side of balance sheet Debit side of P & L a/c Credit side of P & L a/c a. c. c. d. logical unit and output unit Control unit. d. participating and non-convertible Non-cumulative.. Follow us of Facebook https://www. Discount allowed on issue of shares is shown in . c.. 185.
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