JAIIB (Accountancy & Finance)

1.

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14

WEBTEST - 001
In which schedule contingent liability is shown in the banking company : a) 8 b) 9 c) 10 d) 12 A private company should have minimum members: a) 10 b) 7 c) 30 d) 2 Memorandum of association is a document which : a) Prescribes the regulations for the management of internal affairs of the company b) Defines the powers of the share holders. c) Defines the powers the Managing Director of the company : d) None of the above. The profit on reissue of forfeited shares is transferred to: a) Development fund b) General Reserve c) P&L Account d) Capital Reserve Preference shareholders have a preference as regards: a) Dividend b) Refund of Capital c) above a & b c) None of the above When application money is received by the company what entry will be passed? a) Share holders A/c Dr. To share Application A/c b) Bank A/c To share Equity Capital A/c c) Bank A/c To share application A/c d) Share Equity Capital A/c To share Application A/c A document inviting deposits from the public to subscribe for all the shares of a company is termed as: a) Memorandum of association b) Article of association c) Prospectus d) Minutes Book Rights share mean the shares which are : a) Issued to promoters of the company b) Issued to directors of the company c) Offered to the existing shareholders d) Issued for a consideration other than cash. Form of Balance Sheet for the companies has been given in the schedule : a) VI Part I b) VI Part II c) VI Part III d) VI Part IV Computerised Accounting means accounting performed by: a) Top Management b) Computer c) Director d) Accountant The set of instruction written by a programmer for a computer is called : a) Hardware b) Software c) Computer programme d) Computer Programme-Software programme MS Word means: a) a banking software b) a word processor
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The Chief objectives of Financial Accountancy are to: a) acertain the results of operation for a given period b) acertain the financial position at a particular date c) Maintain control over assets d) All of above. Accounting Standards are issued in India by : a) Accounting Standards Board b) Government of India c) Reserve Bank of India d) None of the above GAPP stands for : a) Generally Accepted Accounting Policies b) Generally Accepted Accounting Practices c) Generally Accepted Accounting Principles d) Generally Accounts and Audit Procedure Point out the correct accounting equation: a) Capital = Assets + Liabilities b) Assets = Capital + Liabilities c) Assets = Capital Liabilities d) Liabilities = Capital + Assets Which of the following system of recording transactions in books of a/c is not a scientific one : a) Double entry system b) Mercantile System c) Single Entry System d) Cash System Which of the following is not subsidiary book : a) Ledger b) Cash Book c) Purchase Book d) Sales Book Accounts are basically : a) Two b) Three c) Four d) Unlimited A sum of Rs. 500 was due from Mohan. Out of which he paid Rs. 250 only, the remaining amount could not be paid by him because he is declared insolvent by the court. This amount is known as: a) Loss b) Expense c) Bad Debt d) Asset Cash discount is allowed on : a) Purchases b) Prompt payment c) Sales d) None of the above Act of Transferring the a/c from subsidiary book is known as : a) Balancing b) Double entry c) Posting d) All of the above Ledger is principal book in which : a) Real accounts are maintained b) Personal accounts are maintained. c) Nominal accounts are maintained. d) All above accounts are maintained How many Nos. of schedules attached to final accounts of a banking company are: a) 8 b) 12 c) 16 d) 20 The rate of percentage of stationary reserve to be maintained by a bank under Section 17 of B.R. Act 1949 as: a) 10 b) 12.5 c) 20 d) 25

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JAIIB (Accountancy & Finance)

26

CTDI

WEBTEST - 001
share, which he gets from A. What will be the new profit sharing ratio amongst the partners : a) 2 : 2 : 1 b) 3 : 2 : 1 c) 1 : 1 : 1 d) 50 : 75 : 20 Revaluation account is to be debited when : a) Reduction in the value of assets b) Reduction in the value of liabilities c) Increase in the value of assets d) None of the above Goodwill depend up: a) Peculiar advantage of the site of business b) Population of the place of business c) Good wishes of the customers d) Good wishes of the partners The economic factors causing depreciation: a) Wear & bear b) Depletion c) Obsolescence & in-adequacy d) All of the above The main objective of providing depreciation is : a) To reduce tax burden b) To provide from for replacement of fixed assets c) To calculate true profits d) All of the above A bank reconciliation statement is prepaid by: a) Bank b) Customer of the bank c) Creditor d) All of the above Bank reconciliation statement is : a) A Part of Cash Book b) A ledge Account c) A Statement showing causes of difference between the cash & the pass book balances. d) None of the above Unfavourable bank balance means : a) Credit balance in Pass Book b) Debit balance in Pass Book c) Credit balance in Cash Book d) Both (B and C) Difference in the debit & Credit side of Trial balance is transferred to : a) Suspense A/c b) Profit & Loss A/c c) Capital A/c d) None of the above A Trial balance checks : a) Honesty of the Accountant b) Honesty of the owner c) Arithmetic accuracy of books d) None of the above The following can be detected by preparing a Trial Balance : a) Error of Omission b) Error of Commission c) Error of Principle d) None of the above Capital expenditure may be incurred for acquiring : a) Tangible Asset b) Intangible Asset c) a or b d) None of these Revenue expenditure relate to payment of : a) Rent b) Insurance premium c) Wages & Salaries d) All of above Point out the correct statement:
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c) an accounting software d) None of the above Goodwill is an example of : a) Intangible Asset b) Current Asset c) Tangible Asset d) Fictitious Asset Balance sheet is : a) A statement showing Fixed Assets b) A statement showing Current Assets c) A statement showing fund Flows d) A statement showing fixed financial position a business Which one of the following is a Current Asset : a) Prepaid expense b) Goodwill c) Investment d) Building During a period of rising prices, higher profits can be show by valuing stock at : a) FIFO Method b) LIFO Method c) Simple average price method d) Inflated Price Method Good costing Rs. 10,000/- were damaged by fire Insurance company admitted claim of Rs. 8,000/- Profit & loss account will be debited with : a) Rs. 2000 b) Rs. 8000 c) Rs. 10000 c) None of the above The statement showing assets and liabilities is : a) Profit & Loss A/c b) Balance Sheet c) Trial Balance d) None of the above In absence of an agreement to the contrary the partners shall : a) be paid if they are working partners b) be paid salaries upto Rs. 50000/- p.a. c) be paid salaries if they are sleeping partners d) not paid salaries. A partnership firm can have maximum partners in case of banking business : a) 5 b) 15 c) 10 d) 25 Interest on capital allowed to partners should be treated as : a) A charge against profit b) An appropriation of profit c) A charge when profits are not available d) None of the above The Current Account of a partner : a) Will have always a Credit balance b) Will have always a Debit balance c) a or b above d) None of the above The liability of partners of a firm is : a) Unlimited b) Limited c) To the defined extent d) None of the above Based on the principal laid down in Garmer V. Murray case the loss due to insolvency of partner is to be shared by solvent partners : a) Equally b) In the sacrifice ratio c) In Profit sharing ratio d) In Capital ratio A and B are partners and sharing profits in the ratio of 3:2. C is admitted to the partnership firm will 1/5th

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SCO 1-2-3, 4TH FLOOR, SECTOR 17-D, CHANDIGARH. PH.: 0172-2708961-62

JAIIB (Accountancy & Finance)

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65

WEBTEST - 001
c) Cash price & interest d) Cash price Under the hire purchase system the buyer becomes the owner of goods : a) Immediately after the down payment b) Immediately after the delivery of goods c) Immediately after the signing of the agreement d) Immediately after the payment of the last installment. In a hire purchase agreement the term hirer means the a) Middle man b) Buyer c) Seller d) Tenant Which of the following are the characteristics of a finance lease ? a) Lease contains bargain purchase option b) The period of lease generally extends to major part of the assets useful life c) Present value d) All of the above Depreciation of the asset under the finance lease, charged to the Profit & Loss account by the : a) Lessor b) Lessee c) Manufacturer of the asset d) Seller Which of the following prepared by non trading organisation ? a) Trading A/c b) Income & Expenditure A/c c) Funds Flow Statement d) Cash Flow Statement The Balance Sheet of a club will not reflect: a) Subscription received in advance b) Subscription relating to the previous years but collected during the year c) Donation received during the year d) Entrance free paid by the new members When a person borrower money be pays in return same extra amount to the lender which is known as: a) Interest b) Bonus c) Dividend d) Principal A certain sum of money of simple interest amounts to Rs. 1260 in 2 years and to Rs. 1350 in 5 years. The interest percent per annum is ; a) 2% b) 2.5% c) 3.75% d) 5% A bill of Rs. 2000 is due 10 years hence at simple interest rate 5% p.a. Find banking discount a) Rs. 200 b) Rs. 225 b) Rs. 300 d) Rs. 1000 Depletion Method of depreciation is used in: a) Mines b) Loose tools d) Cattle d) None of the above Accounting to AS-2 inventory can be valued at: a) FIFO Method b) LIFO Method c) Weighted Average Cost Method d) None of the above In double entry system of book keeping every transaction affects a) One a/c b) Two a/cs c) Debit and Credit side of the same a/c
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a) Any amount paid in lum sum is called capital expenditure. b) Every expenditure of large amount is Capital Expenditure c) Any expenditure incurred in achieving operative economy is known as Capital Expenditure d) Any expenditure incurred for increasing the useful life of a fixed asset is revenue expenditure. Under FIFO method in terms of rising prices the charge of production is: a) Stationery b) Unduly low c) Extremely d) Evenly spread Noting charges account is debited by : a) The payee b) The drawer c) The bank d) The acceptor A bill dated 1st March 2006 payable three month, it will fall due on : a) 4th June 2006 b) 1st June, 2006 nd c) 2 June 2006 d) None of these A bill of exchange has : a) 2 parties b) 3 parties c) 4 parties d) 5 parties The relationship between the consignor and consignee is that of : a) Seller and buyer b) Creditor and debtor c) Bail or and Bailee d) Principal & agent Del Credere Commission is calculated on : a) Cash Sales b) Credit Sales c) Total Sales d) Cash sales minus credit sales Account sale means : a) The net sales effected by the consignee b) The net amount due by the consignee to the consignor c) The net commission due by consignor to consignee d) None of the above Consignees Account will be classified as : a) Real Account b) Nominee Account c) Personal Account d) Intangible Account Joint Venture Account falls in the category of : a) Real Account b) Personal Account c) Nominal Account d) Intangible Account A Joint Venture should have at least : a) 10 Co. venture b) 2 Co. venture c) 12 Co. venture d) No limit Joint Venture may also be called as______ partnership a) Temporary b) Restricted c) Permanent d) a & b Rent paid to land lord amounting to Rs. 700 was credited to Rent Account Rs. 7000. In the rectification entry Rent A/c will be debited with : a) Rs. 700 b) Rs. 7000 c) Rs. 7700 d) Rs. 6300

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76 64 In case of hire purchase asset account is debited with: a) Hire purchase price b) Cost price to the seller

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JAIIB (Accountancy & Finance)

77

CTDI

WEBTEST - 001
year new bond issue at 10% coupon rate. If you were to purchase the 12% coupon bond today,what would be the price you would be willing to pay? a)1078.38 b)978.38 c)1000 d)998.38

d) All of the above Sales made for cash to Mr. A should be debited to : a) Mr. A A/c b) Sale A/c c) Cash A/c d) None of the above 78 Discount column of cash book: a) Totaled b) Balanced c) Same lines balanced , Some lines totaled d) Neither balanced nor totaled 79 Real Account relate to : a) Expenses b) Incomes c) Assets d) Liability 80 Posting is one form : a) Ledger to Ledger b) One subsidiary book to another c) Subsidiary book to ledger d) Ledger to subsidiary book 81. You are required to pay Rs100, 000 five years from now. You talk to your bank, and they will give you an interest rate of 3% per annum. How much money do you need to invest today in order to meet the required future payment, if the bank compounds annually? a) Rs 86, 260.88 b) Rs85000 c) Rs80, 000 d) Rs90, 000 82. You are offered an 8% coupon bond with a face value of Rs1000. The bond has three years to maturity, the coupons are paid semiannually, and the yield to maturity is 10%. What price are you willing to pay for this bond? What is the interest you earn annually? a)Rs 80 b)Rs40 c)Rs1080 d)Rs1040 83. You have Rs100 that you can invest in the bank at a rate of 15% compounded annually. How much money will you have in 15 years? a) Rs813.71 b) Rs 890 c)Rs 713.71 d)Rs 880 84. Vipin invested Rs. 5,000 in ABC bank with the interest rate of 4.8%. How much interest would be earn after 2 years? a)Rs. 480 b)Rs400 c)Rs500 d)Rs420 85. The number of unemployed graduates in a state is increasing by 5% every year. If the present number 10, 00,000, the number of unemployed graduates five years hence would be____ a)12,76,280 b)12,66,280 c)1489070 d)1216280 86. A loan of Rs. 4,641 is to be paid back by 4 equal annual installments. The interest is compounded annually at 10%. Find the value of each instalment. a) Rs1364.10 b) Rs. 1464.10 c) Rs.1500 d) Rs1289. 50 87. At the birth of a child, a father a father wishes to invest sufficient amount to accumulate at 12% compounded semi-annually to Rs. 1 lac for education when the child is 16. How much should he invest? a) Rs17890 b) 15496 c)14440 d)17890 88. If Rs100 becomes Rs 200 in 6 years, the rate of interest is ____ according to he rule of 72 . a)12 b)36 c)14 d)20 89. A 5 year GOI bond whose par value is Rs1000 has a coupon rate of 12% payable semi-annually. It has three years term to maturity. GOI has just announced a three

90 Current yield on a bond is obtained by dividing the coupon interest by a) YTM b) Duration c) Current price d) Macualays duration 91 When market interest rates rise, bond prices would fall a)True b)False 92 When the required rate of return (or market rate) is exactly equal to the Coupon rate on a given bond, the bond would be trading at its par value under normal circumstances. a)True b)false 93 A bonds price is directly proportionate to its YTM a)True b)false 94 IRR metrhod is one of the two Discounted Techniques of Capital budgeting a)True b)false 95 IRR is normally discovered by Trial and Error method when the time-horizon is long a) True b) False 96 NPV method, sensitivity analysis and risk adjusted Discounting rate methods are advisable to be employed when the investment decisions are made under conditions of Uncertainty a) True b) False 97 Accelerated Depreciation method allows faster writing off of Depreciation a) True b) False 98 If an Asset has a useful life of 3 years, for calculating the Sum of Years digit, the number taken in the first year in the denominator is 6 i.e. 3+2+1 a) True b) False 99 Residual value is also called as Salvage value or Disposal value a) True b) False 100 The Institute of Chartered accountants has recommended that INERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS) should be adopted in India by 2009:

a) Incorrect

b) Correct

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