JAIIB-AFMB – Mock Test- 9

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1. 
Net working capital is calculated as current asset less current liabilities. What is the alternative formula?

2. 
According to Capital Asset Pricing Modelling (CAPM) approach, the required rate of return on the equity of a particular company depends on three factors. These are? (Fill in the blanks) 1) risk free rate of return, 2) _____ of a company's share price 3) the prevailing _____ return on a portfolio of equity shares.

3. 
Due to different base in calculation of taxable income and accounting income, permanent differences and timing differences arise. Read the statements below regarding this and find out which one is true? 1 Permanent differences originate in one period and do not reverse subsequently. 2 Timing differences originate in one period and are eligible for reversal in subsequent period/s. 3 The Deferred Tax is brought into accounts to make the clear picture of current tax and future tax. 4 Th deferred tax results into inclusion of either the Deferred Tax Assets or the Deferred Tax Liabilities in the balance sheet.

4. 
a by debit to bad debt account in the balance sheet b by deb

5. 
Banks are subjected to multiple types of audit, which can be classified into three broad categories which are 1) ___ Audit, 2) Internal Audit/Information System Audit, 3) ___ Audit.

6. 
A business firm paid royalty to the patentee for use of patent, on the basis of volume of sales. It is will be recorded on:

7. 
While examining the overall picture of a project, its Internal Rate of Return (IRR) should be compared with which cost?

8. 
Firm Z's holding period for raw material is 25 days, conversion period is 7 days, finished goods holding period is 23 days and credit period extended to buyers is 35 days. The credit available to them from their suppliers is for 15 days. What is the operating cycle period as per the operating cycle method for working capital assessment?

9. 
Which of the following is part of Core Banking Components? 1 Core Bank Product Build 2 Core Bank Account Administration 3 Core Bank Payments 4 Core Bank Management Information.

10. 
In the case of which costing technique only the direct costs related to operations, processes or products are allocated to the product and all indirect costs are allocated to the profits in the period in which they arise?

11. 
In case of a company, if a monitoring agency, under SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2018, (last amended on April 27, 2022) is appointed by the issuer and public issue size is above Rs._____ , it shall not be mandatory to call the entire subscription money within 12 months,

12. 
Which of the following features of deferred payment guarantee (DPG) are correctly stated? 1 DPG is a non-fund based method for financing purchase of fixed assets. 2 If the purchaser defaults in payment of any amount, the bank has to pay the same to the supplier 3 Bank's exposure initially is non-fund, but it can become fund based if bank has to pay. 4 The standard of credit appraisal for a DPG is different from a term loan

13. 
Which one of the following is not amongst the disadvantages of computerised accounting?

14. 
Firm-B had raised a loan of Rs.15 lac from the bank in the previous year. During the year, it makes repayment of instalment of Rs.3 lac. Due to this, which of the following will not be correct:

15. 
Given below is the consequence of movement of different items of assets and liabilities. These represent either source or use of funds. Which ones are stated correctly? 1 Increase in equity – source 2 Decrease in short term borrowing – source 3 increase in non-current assets – use 4 decrease in current assets – source

16. 
What will be the carrying cost of the equipment in the balance sheet of PQR Ltd.?

17. 
As per guidelines given in Schedule III of Companies Act, for Preparation of Statement of Profit and Loss, for a company other than a finance company, revenue from operations shall disclose separately in the notes, the revenue from which of the following? 1 Sale of products 2 Sale of services 3 Other operating revenues 4 GST recovered from customers

18. 
Read the statements below regarding commercial paper (CP) as an instrument of borrowing for working capital finance and find out which are True or False? 1 CP is an unsecured money market instrument issued in the form of a promissory note. 2 CP can be issued by highly rated companies only 3 The cost of borrowing through CP is normally lower compared to other sources of short term finance 4 CP are issued at a discount to face value as may be determined by the issuer.

19. 
In a Forward Rate Agreement (FRA), the exchange of payments is based on a notional principal of the FRA and there are 2 legs in the FRA 1) fixed leg 2) _____ leg

20. 
Bank discounted a usance bill of exchange on Jan 01 and its due date is Jun 30. Bank recovered total discount charges of Rs.30200 on this bill. The financial year of the bank closes on Mar 31. In order to reflect true picture of profit and balance sheet, which of the following will be required.

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