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Latest JAIIB Accounting and Finance for Bankers Exam Question (Objective Questions), MCQ in English
Subjects : Accounting & Financial Management for Banker
Question Bank JAIIB Accounting and Finance for Bankers Exam (Paper 3) - English
Accounting & Financial Management for Banker
Q 1 :
Simple rate of interest or flat rate of interest is the amount of interest which is paid every year as a of the amount borrowed :
A.fixed percentage
B.varying percentage
C.fluctuating percentage
D.percentage as per discretion of the lender
Q 2 :
The series of fixed payments paid or received by a person's at specified frequency over a fixed period of time are called :
A.instalments
B.annuities
C.maturity payments
D.sinking funds
Q 3 :
Bank account is a :
A.Personal Account
B.Real Account
C.Nominal Account
D.None of these
Q 4 :
Loan is obtained by X for purchase of a car for Rs.1.50 lac at 12% interest rate over two years. What is the amount of total amount to be paid at simple rate of interest ?
A.186000
B.172000
C.160000
D.150000
Q 5 :
If simple interest on Rs 40,000 for 4 years is Rs 8,800, the rate of interest will be :
A.5%
B.6%
C.8%
D.5.5%
E.4.5%
Q 6 :
Partnership firm is registered under :
A.Partnership Act, 1932
B.Partnership Ct 1930
C.Company's 1956
D.Joint Family Act
Q 7 :
Compound interest is paid on which of the following :
A.principal amount
B.interest amount
C.principal amount and interest already accrued
D.principal amount and interest to accrue
Q 8 :
Which of the following formula for calculation of compounded interest is not matched :
A.P(1+r)= for calculation of annual compounding
B.P(1+(r/4))= for calculation of quarterly compounding
C.P(1+(r/2) = for calculation of half-yearly compounding
D.P(1+(r/4))=for calculation of weekly compounding
Q 9 :
Joint life policy is an :
A.Asset
B.Liability
C.Expense
D.Profits
Q 10 :
If interest is to be compounded half- yearly, which of the following will be used :
A.P(1 + r)n
B.P(1+r/2)nx2
C.P(1+r/4)nx4
D.P(1+r/12)nx12
Q 11 :
A person invests some money in bonds on which interest would be received by him on half yearly basis at the end of each 6th month. Such payment can be said to be :
A.At the end annuity
B.At the beginning annuity
C.Ordinary annuity
D.Sinking annuity
Q 12 :
If 6,000 shares are allotted for cash and Rs 8 per share called up, but only Rs. 6 per share received, then paid-up capital is equal to :
A.36,000
B.40,000
C.48,000
D.50,000
Q 13 :
If interest is to be compounded monthly, which of the following will be used :
A.P(1+r)n
B.P(1+r/2)nx2
C.P(1+r/4)nx4
D.P(1+r/12)nx12
Q 14 :
To ensure that a company is following the Accounting Standards in India, is the duty of which of the following :
A.Company management
B.Company Secretary
C.Auditors of the company
D.All the above
Q 15 :
Bill is made payable to :
A.Drawer'
B.Endorsee
C.Payee
D.All the above
Q 16 :
X invested Rs. 100000 in a bank FDR at 6% p.a. for one year. If interest is compounded on half-yearly basis, the amount payable shall be ?
A.106000
B.106090
C.106130
D.106160
Q 17 :
When the required rate of return is (less than / more than) the coupon rate, the discount on the bond_____ as maturity approaches :
A.More than, increases
B.Less than, increase
C.Less than, constant
D.More than, declines
Q 18 :
Machine hour rate of depreciation is calculated by dividing cost of machinery with :
A.Scrap value
B.Total number of hours
C.Number of days
D.Number of machines
Q 19 :
To make provision on bad debts, which of the following journal entry is correct :
A.Debit the profit & loss and credit the bad debt account.
B.Debit the profit and loss account and credit provision on bad debts account
C.Debit the provision account and credit the bad debt account
D.Debit the provision and credit the account of individual customer
Q 20 :
If an asset is sold, depreciation is calculated :
A.For full year
B.No depreciation
C.Till of its use
D.Half year
Q 21 :
An investor want to invest Rs.20000 to get double amount at 8 rate of interest. For how many years, he should invest the money ?
A.10
B.9
C.8
D.6
Q 22 :
When the future cash flow from a project is discounted, the project can be accepted if :
A.The net present value is zero or negative
B.The net present value is negative
C.The net present value is zero of positive
D.The net present value is more than one only
Q 23 :
The balance of Petty cash a/c is shown as :
A.Expense
B.Asset
C.Loss
D.Revenue
Q 24 :
X deposited Rs. 10000 in a post-office scheme at 8% with quarterly compounding, for 2 years. What is the total amount payable ?
A.11412.34
B.11716.59
C.11926.56
D.12111.23
Q 25 :
Internal rate of return (IRR) is the_____ rate at which the net present value of the cash flows from a project is____ .
A.Return rate, less than one
B.Discount rate, more than one
C.Discount rate, zero
D.Discount rate, less than one
Q 26 :
If debtors are of Rs. 40,000 and new bad debts are Rs400 and provision is to be maintained on debtors @ 5%, then the amount of provisions will be :
A.Rs. 1980 %
B.Rs. 1900
C.Rs. 2000
D.Rs, 2500
Q 27 :
X borrowed Rs. 10000 from the bank, at 12%Pd for one year, payable on equated monthly installment basis. What is the amount of EMI ?
A.888.50
B.877.50
C.880.30
D.878.20
Q 28 :
The estimated value of an asset at which it can be dispose of after a given no. of years of useful life is called :
A.Depreciated value
B.Written down value
C.Salvage or residual value
D.Net value
Q 29 :
Manufacturing Trading account is prepared by :
A.Trading concern
B.Manufacturing concern
C.Company
D.Sole Trader
Q 30 :
The floating rate of interest (a) increases (b) decreases (c) remains constant :
A.a and b are correct
B.a and c are correct
C.b and c are correct
D.d all are correct
Q 31 :
Identify a personal account out of the following
A.Commission account
B.Machinery account
C.Income accrued but not received account
D.Cash account
Q 32 :
Which of the following have a credit balance ?
A.A/c payable
B.A/c receivable
C.Current a/c
D.Discount a/c
Q 33 :
Annuity means (a) a series of payments (b) payments of fixed amount (c) payments to be received or made (d) payment for a fixed period .
A.a to c only
B.a, b and d only
C.b, c and d only
D.a to d all together
Q 34 :
In the case of loan obtained from the bank, the amount repayable is represented by the_____value and the amount taken represents the____ value :
A.Present, future
B.Future, present
C.Present, present
D.Future, future
Q 35 :
Bill receivable endorsed are debited to :
A.Debtor a/c
B.Creditor a/c
C.Bill payable a/c
D.Bill receivable a/c
Q 36 :
When the annuities are made or received at the end of a period, these are called :
Amount received from Insurance Company on maturity of joint life policy is distributed among partners :
A.Equally
B.In profit sharing ratio
C.Capital ratio
D.Not mentioned
Q 39 :
Z rented his house for 2 years at a monthly rent of Rs. 15000 to be received in advance. This is an example of ?
A.ordinary annuities
B.annuities due
C.initial annuities
D.base period annuities
Q 40 :
A principal amount of Rs.40000 becomes Rs.44400 at simple interest rate of 2.75% in a period of :
A.2 years
B.3 years
C.4 years
D.5 years
Q 41 :
Future value of an ordinary annuity can be calculated as :
A.C[(1+r)n-1]xr
B.C[(1+r)n-1]/r
C.C[(1 + r)n+1]×r
D.C[(1+r)"+1]xr
Q 42 :
Amount = Principal (1+r)n is the formula for calculation of :
A.Simple interest
B.Floating interest
C.Compound interest
D.Annuity
Q 43 :
Clerical error includes :
A.Error of omission
B.Principal error
C.Error of commission
D.Both a & c
Q 44 :
Z is to receive Rs. 10000, as interest on bonds by end of each year for 5 years at 5%rate of interest. Calculate the present value of the amount he is to receive ?
A.Rs.43492.60
B.Rs.42397.70
C.Rs.43294.80
D.Rs.4324,9.22
Q 45 :
Which of the following accounting standards do not match in the context of banking companies' accounts :
A.AS-21: consolidated statements
B.AS-21: Segment reporting
C.AS-18: Related party disclosure
D.AS-15: payment of compensation to employees
Q 46 :
Capital expenditure relate to :
A.Wages of construction
B.Repair of machinery
C.Payment of wages to Mr. X
D.Both a & b
Q 47 :
Population of a town is 100000. The rate of change is 4% per annum. What it was 5years ago ?
A.82193
B.82257
C.80493
D.82121
Q 48 :
In the income and expenditure account, transactions relating to______ are included :
A.Current year only
B.Previous year only
C.Subsequent year only
D.Current, previous and subsequent years
Q 49 :
Revenue expenditure are :
A.Day to day expenditure
B.Monthly
C.Yearly expenditure
D.Half yearly
Q 50 :
XYZ purchased machinery of Rs. 100000:Rate of depreciation is 10%. At WDV value method, what is the amount of depreciation for 4 years .
A.34390
B.33291
C.33109
D.33012
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JAIIB Accounting and Finance for Bankers Exam (Paper 3) Question Bank Book - English
When the drawee pays the amount of the bill before its due date it is called :
A.Endorsing the bill
B.Honouring the bill
C.Retirement of the bill
D.None of the above an
Q 52 :
Nominal Capital is :
A.Part of authorised capital issued
B.Maximum amount of share capital which company is authorized to issue
C.Amount of capital actually applied for
D.Amount of capital actually paid
Q 53 :
X wants borrow Rs.25000 immediately and another Rs.20000 after a period of 2years at 10% interest. He wants a pay it in monthly instalments for 5 years. Calculate the amount of monthly payment ?
A.Rs.879.38
B.Rs.897.54
C.Rs.882.31
D.Rs.863.78
Q 54 :
When a bill is paid before due date and the drawer gives some allowance to the drawee, this is called :
A.Discount on the bill
B.Retirement of the bill at a discount
C.Rebate
D.Any of the above
Q 55 :
Bad debts are_____ for business :
A.Loss
B.Revenue
C.Expense
D.Expenditure
Q 56 :
X wants to receive Rs.40000per annum for20 years by investing at 5%. How much will have to invest now ?
A.Rs.498488
B.Rs.489495
C.Rs.493128
D.Rs.489954
Q 57 :
The books of a firm are closed but it is found that a purchase of Rs.1000 from Atma Ram Sons has been passed through the sale book for Rs.100. what is the rectification entry, after preparing the trial balance .
A.Sales account debit Rs.900 to Atma Ram Sons
B.Purchase account debit Rs.900 to Atma Ram Sons
C.Sales account debit fRs.100, purchase account debit Rs.1000 to Atma Ram Sons Rs.1100
D.Sales account debit Rs.1100, purchase account debit Rs.100 to Atma Ram Sons Rs.1100
Q 58 :
Trial balance does not include :
A.Opening stock
B.Closing stock
C.Debtor a/c
D.Bad debts
Q 59 :
X wants to receive a fixed amount for 15years by investing Rs.9 lac at 9% interest rate. How much he will receive annually .
A.Rs. 101659
B.Rs. 110983
C.Rs.111653
D.Rs.114282
Q 60 :
For which of the following, an adjustment entry will be required :
A.Expenses paid but not due
B.Expenses paid which were due
C.Income received which was due
D.All the above
Q 61 :
Which of the following is used for redeeming Preference shares ?
A.General Reserve
B.Dividend Equalization fund
C.Profit & loss a/c
D.All above
Q 62 :
When a fund is created to meet the need of a specified amount in future and it is accumulated by means of equal periodic deposits, it is called_____fund :
A.mutual fund
B.sinking fund
C.accumulated fund
D.any of the above
Q 63 :
Which of the following statement is correct regarding single entry system :
A.It is a system which only one entry is made
B.It is a system where the principles of double entry are not being followed
C.It is a system takes into account only cash transactions
D.None of the above
Q 64 :
Balance sheet includes :
A.Personal a/c
B.Real a/c
C.Both a & b
D.Only nominal a/c
Q 65 :
A firm need Rs. 170000 to replace its machinery at the end of 5 years. At 12%rate of interest, how much it should contribute every month ?
A.Rs.2051.65
B.Rs.2101.51
C.Rs.2081.56
D.Rs.2057.64
Q 66 :
A machinery is purchased for a total price of Rs.1 lac with expected useful life of 5 years. What is the amount of depreciation at double declining balance method for calculation of depreciation, in the 2nd year :
A.Rs.20000
B.Rs.24000
C.Rs.30000
D.Rs.40000
Q 67 :
Discounting of bill with, bank means :
A.Encashing bill
B.Bill sent for collection
C.Bill under rebate
D.Bill dishonoured
Q 68 :
X wants to send his daughter to a management school after 5 years and will be needing onetime payment of charges amounting to Rs.7 la(c) At 12%, how much he should invest annually ?
A.Rs.111105.21
B.Rs.110186.81
C.Rs.109672.22
D.Rs.109486.89
Q 69 :
A car is purchased for Rs.310000 with a scrap as value of Rs.60000 at the end of 5 years’ useful life during Sept 2008, what is the written down value as on mar31, 2009 (which is closing date of financial year) .
A.310000
B.260000
C.250000
D.200000
Q 70 :
Profit & Loss a/c shows position of firm :
A.On particular day
B.Of Accounting period
C.Gross profits
D.Only a/c
Q 71 :
X obtained a loan of Rs.92820 at 10%, which he is to pay in 4 equal annual instalment. Calculate the amount of installment ?
A.Rs. 28283
B.Rs. 29282
C.Rs. 29476
D.Rs. 29822
Q 72 :
The amount of under casting of credit side of bank column of the cash book will be deducted from the overdraft as per :
A.Cash books
B.Pass book
C.Both the books
D.None of the above
Q 73 :
In case of dishonour of bill, actual payment fall on :
A.Drawer
B.Endorse
C.Drawee
D.Bank
Q 74 :
For measurement of credit risk, which of the following is not a correct approach, as adopted in India for Basel 2 framework :
A.standardized approach
B.internal rating-based foundation approach
C.internal rating-based advance approach
D.none of the above
Q 75 :
In which of the following, normally, the closing stock is not included :
A.Trial balance
B.Profit and loss account
C.Balance sheet
D.None of the above
Q 76 :
If drawings exceed capital introduced in business, capital a/c may have :
A.Debit balance
B.Credit balance
C.Either of above
D.None
Q 77 :
Which of the following approach under operational risk specifies different indicators for different business lines, under Basel 2framework ?
A.basic indicator approach
B.standardized approach
C.advanced measurement approach
D.none of the above
Q 78 :
In the context of Rule of 72, which of the following is correct :
A.If amount of principal is divided by 72, it gives the rate of interest and period, to double the principal
B.If 72 is divided by the principal, it gives the rate of interest and period to half the principal
C.If 72 is divided by the rate of interest, it will provide the period to double the principal
D.If 72 is divided by the period, it will provide the rate of interest, to half the principal
Q 79 :
Noting charges on a bill are paid to :
A.Bank
B.Drawer
C.Notary public
D.Drawee
Q 80 :
In the market risk for capital adequacy purpose, the trading book does not include which of the following :
A.securities included under the held for trading category
B.securities included under the available for sale category
C.open gold position or open foreign exchange positions
D.securities included in held to maturity category
Q 81 :
Where regular payments are required to be made or received for a fixed period of times in the beginning of each period interval, this is called :
A.Perpetuity
B.Ordinary annuity
C.Annuity due
D.Sinking fund
Q 82 :
Contra entry does not include
A.Deposit of money in bank
B.Deposit of check in bank
C.Withdraw of money for office
D.Rent paid by cheque
Q 83 :
Capital charge for general market risk, is designed to capture the risk of loss arising from changes in the____ .
A.market prices
B.market interest rates
C.all market variables
D.value of the portfolio
Q 84 :
Mr. Satish has decided to invest Rs.7500 every year for the next 3 years at prevailing rate of 10% p.a Calculate the present value of the amount he is to receive at the end of the period .
A.18650
B.16850
C.19560
D.17550
Q 85 :
The entry for receipt of bill is passed in drawer book if bill is :
A.Retained by drawer
B.Discounted
C.Endorsed
D.None of the above
Q 86 :
To start with, in India the banks have adopted the____ approach, for measurement of market risk :
A.advance measurement approach
B.basic indicator approach
C.standardized approach maturity method
D.standardized approach duration method
Q 87 :
A fixed asset is purchased for Rs.1 lac with excepted useful life of 5 years. Its depreciated value at the end of 3rdyear will be Rs._____. If it is sold for Rs.45000, the firm will make profit/loss of Rs._____ .
A.Rs.60000, loss, Rs.15000
B.Rs.40000, profit, Rs.5000
C.Rs.40000, loss, Rs.5000
D.Rs.60000,profit, Rs.15000
Q 88 :
Payment of salary to manager will
A.Decrease asset & capital
B.Increase assets
C.Increase asset & capital
D.Decrease capital
Q 89 :
The term BCBS in the context of capital adequacy ratio stands for :
A.Banking Committee of basic supervision
B.Basel committee on banking supervision
C.Basel committee on basic supervision
D.Basel Committee on Business Supervision
Q 90 :
Business transactions are recorded on the basis of certain set of rules and criteria, which are called :
A.Double entry book keeping
B.Single entry book keeping
C.Accounting standards
D.Any of the above
Q 91 :
In case of renewal of bill, interest will be calculated for period of :
A.Original
B.Fresh bill
C.Original & fresh bill
D.Six month
Q 92 :
Which of the following options are not available for calculating credit risk under Basel It framework :
A.standardized approach
B.internal risk based approached
C.internal rating based approach - foundation
D.internal rating based approach - advance
Q 93 :
Which of the following accounting standard prescribed by ICAI in India does not match the description :
A.AS 17-segment reporting
B.As 26- Intangible assets
C.AS 09- Revenue Recognition
D.AS 01- cash flow statement
Q 94 :
Gaining ratio is calculated at time of :
A.Admission
B.Retirement
C.Dissolution
D.None
Q 95 :
For market risk, which of the following approaches is not available as per Basel I framework :
A.internal rating based approach
B.internal risk based approach
C.standard approach - duration method
D.standard approach - maturing method
Q 96 :
The accounting method in which the profit represents the excess of receipts over the expenditure :
A.Cash method
B.Accrual method
C.Single entry method
D.None of the above
Q 97 :
Which is not correct about goodwill ?
A.It is intangible asset
B.Has definite value
C.Earning excess profits
D.Equal to nominal profits
Q 98 :
A board approved policy for ICAAP is required to be put in place by RBI for implementation of Basel II framework. ICAAP stands for :
A.Internal capital adequacy assessment procedures
B.Internal capital adequacy appraisal process
C.Internal capital adequacy assessment process
D.Internal capital assessment and adequacy process
Q 99 :
Which among the following is not a correct statements :
A.In India the accounting standards are issued by Accounting Standards Board under ICAI
B.Compliance with accounting standards is the duty of Auditor
C.Single entry system is a scientific method of accounting
D.Accounting standard 6 relates to depreciation accounting
