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JAIIB Test Series

Accounting & Finacane for Bankers







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1.        Recording of financial transaction on the basis of set of rules and criteria is known as:

A)     Accounting practices

B)      Accounting   procedures

C) Accounting standards

D)     Generally accepted accounting practices

E)      None of the above


2.       What is the objective of formulation and practicing of accounting standards:

A)   To   harmonies   diverse  accounting  policies  and  practices

B)      To  regulate  accounting   practices

C)      To   frame   accounting  policies  of   the  companies

D)     To  standardize  accounting  of companies  and  firms  

E)      All the above


3.       Who  frames the accounting  standards  in  India

A)      Reserve  bank

B)      Ministry  of company  Affairs

C)   Institute  of  chartered  accountants   of  India

D)     Institute  of  company  secretaries  of   India

E)      Institute  of   cost  and  works  Accountants of  India


4.       Within   ICAI,  which  organization  takes  care  of   formulation  of  accounting  standards:

A)     Council  of  ICAI

B)   accounting  standards Board

C)      accounting  standards  Committee

D)     a  to  c  all

E)      b   and   C


5.       Under   section  217   (2AA)  of Companies  Act  the  compliance  with  accounting  standards  by  the  company   is  the  responsibility   of:

A)     SEBI

B)      Statutory   Auditor

C)   Board   of  Directors 

D)     Financing   bankers  and  shareholders

E)      AII  the  above 


6.       Accounting  Standard   AS-1    relates  to :

A)     Disclosure  of  accounting  policies 

B)       Valuation  of  inventories

C)      Segment  reporting

D)     Impairment  of  assets

E)      Revenue   recognition

7.       Segment  Reporting  is  mandatory  disclosure  under   which  of  the  following  accounting  standards:

A)      As 1

B)       As 12

C)   As  17

D)     As  22

E)      As 28


8.       Which  accounting  Standard  relates  to  interim  financial  reporting:

A)      AS  1

B)       AS  12

C)       AS  17

D)      AS  22

E)    AS  25


9.       IF   a  business  entity  expects  that  a  contingency  would  result  in  loss  to  the  firm,  it  should  make  provision  for  that  loss,  under  which  of  the  following  accounting  standards:

A)  AS  4

B)      AS  7

C)      AS  9

D)      AS 11

E)       AS 29


10.    Concept  of  depreciation  does  not  apply  to   forest,  plantation,  wasting  assets, expenditure  on  research  and  development,  according  to  which  of  the  accounting  Stanards

A)  As   06   relating  to  depreciation

B)      As  12  relating  to  fixed   asset  valuation

C)      As  17  relating  to  fixed   asset  valuation

D)     As  22  relating  to  depreciation

E)      As  28  relating  to  wasting  assets 


11.   Income   should  be  recognized  as  revenue   when  it  is  said  TO  have  arisen,  falls  under  which  of  the  accounting  standards:

A)  AS  06  relating  to  depreciation

B)      AS  09  relating  to  revenue  recognition

C)      AS  17  relating  to  income  recognition

D)     AS  22  relating  to  depreciation

E)      AS  28  relating  to  wasting  assets 


12.    Taxable  income,  According  to  Accounting  Standard  22  (income  tax ). V is  determined  in  accordance  with  the :

A)     Tax  laws  in  general

B)   Tax  laws based  on  which  income  tax  is  payable

C)      Business  law  under  which  the  entity  is  regulated

D)       A to C   all

E)      A  and   C


13.     Deferred  tax ,  according  to  according to  accounting  standard  22  is :

A)      tax  liability  that  remains  unpaid

B)       tax  liability  that is  contingent

C)      tax  liability  that  may  arise  or  may  not  arise

D)  tax  effect  of  timing  difference

E)       none  of  the  above 


14.   According  to  AS  22 the  income  tax   determined  to be  payable  in  respect   of  taxable  Income  for  a   period   IS  Called :

A)     tax  expense

B)      Taxable  income

C)      Deferred  TAX

D)     Future  tax

E)   Current  tax 


15.     Which  of  the   following  is  not  part  of  the  interim  financial   report   as   per   AS  25 :

A)     Condensed  balance  sheet

B)      Condensed  statement  of  profit  and  loss   account

C)      Condensed  cash  flow  statement

D)     Selected  explanatory  notes 

E)   None   of   the  above


16.     According   to  AS25,  interim  period  means :

A)     Close of  the   quarterly

B)      Close of  the  half – year

C)   Period  that  is  not  a  complete   financial  period

D)     Period  that  is  more  than  a  year

E)      None   of   the  above


17.    Procedure  applied  that   ensures  carrying  the  amount  of  an  asset  not  more  than  the  recoverable  amount  of  the   assets,  is  prescribed  under  accounting  standard :

A)     AS   06   relating  to  depreciation

B)      AS   12   relating  to  fixed  asset  valuation

C)      AS   17   relating  to  fixed  asset  valuation

D)     AS   22   relating  to  impaired   assets

E)   AS  28   relating  to  impairment of  assets


18.   At international level. Who formulates the international accounting standards:

A)     UNO

B)      World bank

C)      International monetary fund

D)     International accounting standards board

E)      International accounting practices and standards board


19.   Fill in the following blanks:

A)     Accounting standards are mandated by ICAI

B)      Accounting  standard board  determines the area in which accounting standards need to be formulated.

C)      Where mandatory accounting standard is not followed, the  auditors are required to qualify their report.

D)     Where a company does not follow a mandatory accounting standard, it has to give reasons for such deviation and   financial effect arising out of such deviation.

E)   To follow the accounting standards is compulsory is case of those business establishments whose turnover for the accounting period exceeds Rs.50 Cr.

20.   State whether the following is true or false:

A)     Accounting standards are to be mandatorily followed by all business organizations.   F

B)      A company whose equity debt securities are listed on a recognized stock exchange in India, has to follow accounting standards.    T

C)       As per accounting standard 3, cash includes cash equivalents also.   T

D)     Events occurring after date of balance sheet but before preparation of balance sheet having adverse effect should be provided for as per AS 4.    T

E)      A firm should present the gross amount due to customers for contract work as a liability.    T




















































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