JAIIB-AFMB - Mock Test- 5
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1.
Debt service coverage ratio is calculated as :
2.
Firm-B wants to write off balance of a debtor amounting to Rs.10000. What journal entry shall be passed.
3.
The debit side of Profit and Loss Appropriation account shows which of the following items? 1 Transfer to reserve/general reserve, dividend/interim dividend/proposed dividend 2 Debenture redemption account. 3 Dividend Distribution Tax. 4 Surplus transfer to balance sheet.
4.
Which of the following statements are True regarding Error of Omission? 1 If a transaction is not recorded in book of original entry, it is called error of ‘Complete omission’. 2 If a transaction is recorded in one book but not the other book, it will be called ‘Partial omission’. 3 The error of complete omission does not affect the trial balance 4 The partial omission will result in disagreement of trial balance.
5.
Which accounting takes into account the current market value of certain assets and liabilities?
6.
As per RBI guidelines, the banks to reconcile the entries outstanding in their inter-branch accounts within how much period?
7.
The main assumptions of n1-2 onlyet present value (NPV) method and the internal rate of return (IRR) method are as follows? 1 The sums of moneys, resulting from an investment, that accrue in future, are known with certainty. 2 There is no inflation. 3 Investor is certain to make the invest
8.
A firm wants to write off a bad debt. It shall:
9.
Read the statements below regarding debt and bonds and find out which of these are True and False? 1 Debt capital consists of mainly bonds and debentures. 2 A bond is a long term instrument or security. 3 Bonds issued by the government do not have any risk of default. 4 Bonds of public sector companies in India are generally secured. Hence these are free from the risk of default.
10.
Financial Control can be exercised by business firm by identifying areas of inefficiency. For this purpose, which technique can be used? 1) ratio analysis, 2) costing, 3) budgetary control
11.
What journal entry shall be passed by the drawee in his books while giving acceptance to a bill of exchange?
12.
Z purchased 8%, 5 years bonds of Rs.10 lac, with annual interest payment and face value payable on maturity. The YTM is assumed at 6%. Calculate the modified duration if duration is 2.79 years.
13.
In case of Earning Price Ratio approach for cost of equity, what formula is used to calculate required rate of return?
14.
The cash book has been showing a balance of Rs.55000. A cheque of Rs.3000 issued by the firm has been entered twice in the cash book. A customer of the firm has deposited Rs.2000 directly in the bank. What will be balance in the pass book.
15.
XYZ Ltd. purchases a computer mouse production machine. This machine can manufacture 2,000,000 units after which it will have to be scrapped. The purchase price of the machine is Rs.200,000 and the scrap value is estimated at Rs.20,000. During the first year of production, the machine produced 400,000 unit. What will be the depreciation amount in the first year?
16.
Read the statements below and find out True and False? 1 Joint control is the contractually agreed sharing of control over an economic activity. 2 Control is the power to govern the financial and operating policies of an economic activity to obtain benefits from it. 3 A venturer is a party to a joint venture and has joint control over that joint venture. 4 An investor in a joint venture is a party to a joint venture and has joint control over that joint venture.
17.
Which Accounting Standard deals with the reporting of information about the different types of products and services of an enterprise and its operations in different geographical areas?
18.
value is assumed as Rs.2000. What will be amount of profit or loss, if the computer is sold for Rs.35000 at the end of 2nd year. The calculation is to be made on the basis of sum of years’ digits method, if life is 5 years.
19.
An accountant of a medium sized business firm, rounds off the amount to nearest Rs.100 while preparing balance sheet. He can do so, by using exception provided by which of the following convention of accounting?
20.
Read the following statements regarding meaning of Capital Structure of company. Which of these are correct? 1 Capital Structure is the proportion of debt and equity in the total long term funds raised by the firm. 2 Equity is the risk capital from owners who get dividend on their investment 3 debt providers lend the money to the firm and earn interest 4 In case of loss, the risk is born in equal proportion by holders of debt and equity
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