AFB full length exam-1 - Motivational Banker
1. The loan obtained by a company has been adjusted. Which of the following in connection with registration is not correct:

Question 1 of 120

2. A company XYZ Limited has given guarantee on behalf of other company ABC Limited of the same group for a term loan for purchase of machinery (also hypothecated to bank), on January 22, 2009, the date of loan documents. The loan has been released by the bank on January 27, 2009.

Question 2 of 120

3. XYZ Limited created mortgage on its property in favour of Bank A on January 12, 2009 and in favour of Bank B on January 27, 2009. These charges were registered on Feb 28 and Feb 8 respectively.

Question 3 of 120

4. ________refers to the minimum amount of capital that should be subscribed for by public before a company can proceed with allotment

Question 4 of 120

5. Who frames the Accounting standards in India.

Question 5 of 120

6. Under net present value method, a project will be accepted for investment if:

Question 6 of 120

7. Information related to capital adequacy ratio, teri-1 capital, tier-2 capital, percentage of shareholding by govt. is provided in schedule.............. in the balance sheet of a bank:

Question 7 of 120

8. ABC limited want to make an investment of Rs 39000 in a project, the cash inflows from the project shall be 8000 respectively. At 9%, the discount factor is 0.917, 0.842, 0772 and 0.798 of first 4 years and at 11% these are 0.901, 0.812. 0.731, 0.659 respectively. Calculate the internal rate of Return.

Question 8 of 120

9. Operating expenses (Schedule 16) of a bank balance sheet does not include, which of the following?

Question 9 of 120

10. A bank using 3rd party for banking activities is called:

Question 10 of 120

11. If rebate account is created for the un-earned amount if discount recovered by the bank, what journal entry is required to be passed in the next financial year?

Question 11 of 120

12. The accounting system that is concerned with financial state of affairs and financial results of operations of a business firm is called:

Question 12 of 120

13. Computerized accounting means which of following?
(i)Performing various accounting functions on a computer
(ii) Core business solution environment
(iii) Getting output from the computer

Question 13 of 120

14. A firm purchased fixed assets with the available cash. This would:

Question 14 of 120

15. When shares are issued for an amount equal to the face value of share, they are said to be?

Question 15 of 120

16. A company offers 10000 shares of Rs.10 each. Public subscribed for 22000 shares. This is the case of?

Question 16 of 120

17. Profit on re-issue of forfeited shares is transferred to?

Question 17 of 120

18. Securities premium is shown under?

Question 18 of 120

19. Accrued incomes are

Question 19 of 120

20. Under Rules notified under Prevention of Money Laundering Act, banks are required to maintain records of following types of transactions (which is not correct):

Question 20 of 120

21. Those transactions will be treated as integrally connected where total amount of transactions _________ exceeds Rs. ________:

Question 21 of 120

22. Interest is credited by the bank to the saving bank accounts of the customers. This transaction:

Question 22 of 120

23. AS 2 is about?

Question 23 of 120

24. It is essential to standardize the accounting principles and policies in order to ensure

Question 24 of 120

25. To prevent cheque related frauds, the examination under ultra-violet (UV) lamp for all cheques beyond a threshold of Rs........... is mandatory.

Question 25 of 120

26. A person who does not have an account-based relationship with a bank but undertakes with a bank is called:

Question 26 of 120

27. A partner is acting as an agent of the firm. He can bind the firm by an act dome for the firm and in the name of the firm in normal course of business. This is called

Question 27 of 120

28. In accounting terminology, income is equal to:

Question 28 of 120

29. Rishabh, a minor aged 17 years, who appears to be 21 years has misrepresented his age and borrowed some money form you branch. The branch has however taken a guarantee form Rakesh Sinha, 44 his Paternal uncle. Rishabh is not repaying the loan and defaults to pay. The bank can:

Question 29 of 120

30. Which of the following kinds of liabilities is not included in the balance sheet of a firm:

Question 30 of 120

31. The liabilities in the bank balance are recorded in 5 different schedules in From A. The correct order of these schedules is:

Question 31 of 120

32. Total time during which the debt is amortized is called;

Question 32 of 120

33. Rajesh Kumar your saving bank customer, issue a cheque of favour of Mr Niraj, who negotiates the cheque to Mr Rishabh. Your branch receives this cheque is clearing for payment, but a notice of death of Mr Rajesh is received. What will you do with this cheque?

Question 33 of 120

34. A sleeping partner asks the bank to stop operations in the account. Next day he comes to request that he gave the instruction by mistake:
(i) Bank can allow operations if he gives in writing
(ii) Bank can allow operation if all the partners make a request
(iii) Bank can allow operation if he gives in writing

Question 34 of 120

35. Which accounting concept requires calculation of depreciation?

Question 35 of 120

36. As per the Companies Act 2013, the maximum no. of shareholders in a private company is restricted to:

Question 36 of 120

37. The maximum number of directors in a public company can be_________ without any permission from Central Govt. as per provisions of Companies Act 2013:

Question 37 of 120

38. Interest received is an example of

Question 38 of 120

39. Trade receivables are examples of?

Question 39 of 120

40. Full KYC exercise will be required to be done at least Every______ years for high-risk individuals and entities

Question 40 of 120

41. As per provisions of Companies Act 2013, if the no. of directors is more than the prescribed number, the number of directors can be increased with:

Question 41 of 120

42. Which method does not consider the time value of money?

Question 42 of 120

43. Under Rules relating to Prevention of Money Laundering Act, the banks are required to preserve records of transactions for:

Question 43 of 120

44. Under the rules framed under Prevention of Money Laundering Act, the banks need to furnish to FIU-India, which of the following reports:

Question 44 of 120

45. Which of the following is not correct regarding end of the day (EOD) operation in a bank:
(i)It has to be dine at the branch level
(ii) After EOD, operation can be done under pending transaction requiring authorization
(iii) After EOD, operation can be done under all pending transaction?

Question 45 of 120

46. A bond has face value Rs 10000 and coupon rate of 10%. It is quoted at Rs 10600 in the secondary market. What is current yield on the bond.

Question 46 of 120

47. A minor 16 years of age, is having in FDR of Rs 10000 with the bank. He requested for before-maturity payment:

Question 47 of 120

48. The home currency price of one unit of foreign currency is called?

Question 48 of 120

49. Which of the following transaction does not result into creation of a debit voucher:

Question 49 of 120

50. Which of the following are the books that are used in the computer accounting function?

Question 50 of 120

51. Balance in which of the following accounts is increased by credit entries?

Question 51 of 120

52. As per Prevention of Money Laundering Act, The bank are required to maintain record of transactions below Rs 10 lakhs even, if the aggregate of such transactions is Rs.......... during ..............?

Question 52 of 120

53. The time period for submission of Cash Transaction Report (C R), Suspicious Transactions Report (STR) and Counterfeit Currency Report (CCR), does not match in which of the following:

Question 53 of 120

54. Cash is a______ account while bank is a_____ account

Question 54 of 120

55. What is MMMFs

Question 55 of 120

56. Banks desirous of setting up MMMFs would have to seek necessary clearance

Question 56 of 120

57. A company has raised loan for purchase of machinery from the bank in the form of a term loan. Another loan has been taken against current assets in the form of cash credit hypothecation of stocks.

Question 57 of 120

58. Accounting system of different banks is different. Which of the following factor is responsible for this?

Question 58 of 120

59. X had deposited a local cheque for credit to his account. The cheque is drawn on another bank. On realization of this cheque, which of the following journal entry would be correct?

Question 59 of 120

60. Opening balance in the account of Mr.Z is Rs.10000. Following transactions took place on January 23. He deposited a cheque of Rs.3000 for local clearing, which will be cleared next day. A cheque of Rs.2000 issued by him from his account is paid from his account. Bank credited interest of Rs.100 to his account. What is the balance at close of the day?

Question 60 of 120

61. When a company purchases own shares, it is called?

Question 61 of 120

62. In case of electronic clearing services (ECS), the ECS-Debit represents which of the following:

Question 62 of 120

63. By capitalization of reserves and profits, what kind of shares are issued by a company:

Question 63 of 120

64. A company issuers preference shares but does not state as to what kind of preference shares these are these would be presumed to be:

Question 64 of 120

65. A banking company is required to furnish 3 copies of balance sheet and profit and loss account to:

Question 65 of 120

66. Which of the following cannot be prepared in the computerized accounting environment?

Question 66 of 120

67. An exporter offers a FC export bill of Euro 10000. The US$/Euro rate in London is 1 euro=1.70/1.75 USD and USD rupee rate in the Mumbai is Rs50/30. If there are no other charges, how much amount will be credited to the account of exporter?

Question 67 of 120

68. Accounting procedures and accounting practices should remain same form year to year under which of the following accounting principles:

Question 68 of 120

69. Raman need Rs 15 lac for the marriage of his sister at the end of 5year. Considering that the interest rate is 10% at present, how much lesser amount he will have to deposit in the bank FDR if the compounding is half yearly and not yearly?

Question 69 of 120

70. The modified accelerated cost recovery system (MACRS) is an illustration of which of the following methods of depreciation?

Question 70 of 120

71. When the exchange of currencies takes place on 2nd working day (T+2), which of the following type of exchange rate will be applicable?

Question 71 of 120

72. A Treasury bill with a par value of Rs 100000 due one-month from now is selling today for Rs 99010. The effective annual yield is ...........

Question 72 of 120

73. In case of electronic clearing services (ECS), the ECS-Credit represents which of the following:

Question 73 of 120

74. Which of the following classification of capital and revenue expenditure is not correct:

Question 74 of 120

75. The preference shares, the amount of which is returned by the company as per pre-fixed terms are called:

Question 75 of 120

76. If the forfeited shares are to be reissued at a discount, which of the following statement is correct:

Question 76 of 120

77. Arrange the following steps involved in capital budgeting in order of their occurrence
(i) Project Selection
(ii) Project appraisal
(iii) Project generation
(iv) Follow up
(v) Project execution

Question 77 of 120

78. Which of these factors determine the amount of depreciation?
(i) Estimated scrap value
(ii) Total cost of the asset
(iii) Actual scrap value
(iv) Estimated useful life of the asset

Question 78 of 120

79. Which of the following methods of depreciation is approved by income tax authorities?

Question 79 of 120

80. A truck was purchased for Rs.8 lac with expected life of 8 years. At the end of 5th year, it was sold for Rs.312000. What is the profit or loss on sale of this vehicle?

Question 80 of 120

81. A particular person can be director of maximum__________ companies concurrently, as per provisions of Companies Act 2013:

Question 81 of 120

82. Out of the prescribed no. of maximum no. of directorships that can be held by a person concurrently, the maximum number of such public companies can be______ as per provisions of Companies Act 2013:

Question 82 of 120

83. A company winds up its affairs and to wind up the affairs and operate the account the person so appointed by the court is:

Question 83 of 120

84. In manual accounting system adjustment entries are made to adhere to principle of matching. In the computerized accounting system:

Question 84 of 120

85. A ............ bond is a bond where the bondholder has the right to cash in the bond before maturity at a specified price after a specific date.

Question 85 of 120

86. The Coupon interest divided by the current market price of a bond gives:

Question 86 of 120

87. Which among the following is true with regard to objective of getting signature of the person obtaining payment of a bearer Cheque?

Question 87 of 120

88. As per KYC policy, the banks should not allow opening and/or holding of an account on behalf of a client/s by professional intermediaries, like Lawyers and Chartered Accountants etc:

Question 88 of 120

89. The business transactions are recorded date wise to create proper record for all transactions. This is part of which of the following:

Question 89 of 120

90. Which of the following kinds of preference share cannot be issued by a company:
(i)Participating
(ii) Irredeemable
(iii) Subsidiary

Question 90 of 120

91. In book keeping, credit means:

Question 91 of 120

92. M/s Srivastav & Co. a partnership firm is maintaining a current account with your branch with operational instructions to be operated by any one of the partners. A cheque singed by Rishabh is countermanded by Swati which he claims was, through an oversight at a later stage. Subsequently, the said partner approaches the bank to revoke the instructions of lifting the stop payment. The bank would:

Question 92 of 120

93. A company (with limited funds) wishes to pay preference dividends, debenture interest and equity dividends during a financial year. In what order should the company plan to make the payments?

Question 93 of 120

94. Which of the following is a characteristic of a debenture?

Question 94 of 120

95. Every listed company or every other company having a paid-up share capital of Rs. _______or more are mandatorily required to appoint at least one women director, as per provisions of Companies Act 2013

Question 95 of 120

96. The process that obviates the need to present outstation cheques at local centres, without physically moving those cheques at outstation locations is called:

Question 96 of 120

97. In speed clearing, which of the following are not eligible?

Question 97 of 120

98. Car is an example of________ while _______ is personal account
(i) Real account, Debtor
(ii) Personal account, Bank
(iii) Real account, Bank
(iv) Real account, Mohan

Question 98 of 120

99. What is Auditing ?

Question 99 of 120

100. As per RBI, the banks should frame their KYC policies incorporating which of the following key elements
(i) Customer Acceptance Policy
(ii) Customer Identification Procedures
(iii) Monitoring of Transactions
(iv) Risk Management.

Question 100 of 120

101. For KYC purpose, under customer acceptance policy, the parameters of risk perception should be clearly defined in terms of
(i) The nature of business activity,
(ii) location of customer and his clients,
(iii) mode of payments,
(iv) volume of turnover,
(v) social and financial status

Question 101 of 120

102. A customer has approached the bank to open an account but bank is unable to apply appropriate customer due diligence measures, i.e , bank is unable to verify the identity and/or obtain documents required as per the risk categorization due to non co-operation of the customer or non-reliability of the data/information furnished to the bank. What the bank is supposed to do under its acceptance policy?

Question 102 of 120

103. As per Prevention of Money Laundering Act, The bank are required to maintain record to transactions for a period of............ form date of cessation of the transaction:

Question 103 of 120

104. A foreign banking company is required to display in a conspicuous place in its principal office and in every branch office in India a copy of its last audited balance-sheet and profit and loss account shall, not later than .......... of any year in which it carries on business.

Question 104 of 120

105. Depreciation arises because of:

Question 105 of 120

106. Trade discount is given on ___________ :

Question 106 of 120

107. If the company has to sign loan documents or open a bank account or create an equitable mortgage or any other charge, in favour of the bank for security of a loan, who will come to the bank deposit the original title documents of the property on behalf of the company:

Question 107 of 120

108. Kanishka had raised a loan which he agrees to repay on a weekly basis. The amount of instalment shall be calculated as:

Question 108 of 120

109. A financial happening that affects the finance of the business is called:

Question 109 of 120

110. Which of the following institutions is associated with allotment of shares by a company, after conclusion of the public issue for shares:

Question 110 of 120

111. A nomination can be accepted in favour of which of the following:

Question 111 of 120

112. Identify the incorrect statement regarding depreciation
(i) Under WDV method, depreciation goes on increasing year after year
(ii) Under SLM, the book value of the asset can be reduced to zero
(iii) Under SLM, equal depreciation is charged every year
(iv) Under WDV, the book value of the asset can be reduced to zero

Question 112 of 120

113. Which of the following is/are methods of recording depreciation in the books

Question 113 of 120

114. The staff involved in cash transfers in ATM replenishment, is required to be
(i) thoroughly screened,
(ii) their photos taken
(iii) their finger prints taken
(iv) indemnity taken from them for any incident

Question 114 of 120

115. In an ATM replenishment exercises, the Bin filing exercise should be done in the presence of _______ , who should supervise each other to ensure that correct denominations have been placed in the bins.

Question 115 of 120

116. Debt financing is a cheaper source of finance because of

Question 116 of 120

117. The concept of present value is based on the

Question 117 of 120

118. If a company is to re-issue partly paid share with face value of Rs.100, what journal entry of the following is not correct, if the first and final call is Rs.30 per share and the discount is 10%.

Question 118 of 120

119. An asset is purchased for Rs. 2 lacs. Its depreciated value is Rs. 1 lac at the end of 5th year at 10%. The depreciation in this case has been charged at .........under .......... method.

Question 119 of 120

120. The provision for bad and doubtful debts at the time of dissolution of a film is transferred to which of the following accounts.

Question 120 of 120