AFB full length exam-2 - Motivational Banker
1. Financial statements include?
(i)Balance Sheet
(ii) Ledger
(iii)Profit & Loss account
(iv)Cash flow statement

Question 1 of 120

2. The health condition of the proprietor of the firm or the effect of dispute with Labour Union is not recorded in the account books of a firm due to application of:

Question 2 of 120

3. The price at Which one can enter into a contract today to buy or sell a currency 60 days from now is called a?

Question 3 of 120

4. A mistake has been committed in the balancing of the ledger account. What type of error it is?

Question 4 of 120

5. A car was purchased for 800000. Its scrap value was estimated to be Rs.100000 after 5 years of use. Calculate then amount of depreciation using straight line method.

Question 5 of 120

6. Periodical updation of full KYC (customer identification) data is to be undertaken by banks under KYC:

Question 6 of 120

7. Accounting Standard 19 deals with?

Question 7 of 120

8. X has been authorised by the ABC Limited to operate the account. He has to go abroad for few weeks. He authorised Y to operate the account. Cheque signed by Y is presented for payment of income tax dues:

Question 8 of 120

9. Which of the following is a liquidity ratio?
(i) Current ratio
(ii) Quick ratio
(iii) Earnings per share
(iv) Current assets turnover ratio

Question 9 of 120

10. Which of the following is not an example of capital expenditure?

Question 10 of 120

11. To control the cheque related frauds, checking at multiple levels, of cheques above a threshold of Rs ----- is mandatory.

Question 11 of 120

12. The face value of a bond is Rs 10000, its coupon rate 10% and time to maturity is 4 years. Calculate the duration of this bond.

Question 12 of 120

13. Which of the following method is more appropriate for equipment like computers, which get obsolete more quickly?

Question 13 of 120

14. The chain rule method is used in case of which of the following types of rates?

Question 14 of 120

15. In case of high-risk customers, full KYC is required to be done by the bank:

Question 15 of 120

16. A company has been carrying uncalled liability on partly paid-up shares. This would be classified in the books of the company as:

Question 16 of 120

17. A business firm creates provisions against doubtful debt under which if the following conventions: (i)Convention of materiality
(ii) Convention of conservatism
(iii) Convention of disclosure

Question 17 of 120

18. The total of debit side of an account exceeding the total of the credit side indicates:

Question 18 of 120

19. Double entry system of book keeping refers to a system where:
(i) Increase in asset
(ii) Equal debit and credit entries are made for each transaction
(iii) Each transaction is recorded in two set of account books.

Question 19 of 120

20. A cash payment of Rs 200 to ABC for bringing a machine (i.e carriage expenses) to manufacture chair. To the factory premises should be debited to:

Question 20 of 120

21. _____ is a yardstick against which actual ratio is to be compared

Question 21 of 120

22. A minor can be allowed to open a saving bank account, if?

Question 22 of 120

23. Goodwill is an example of?

Question 23 of 120

24. For the purpose of Know your customer policy, which of the following, is a customer:

Question 24 of 120

25. Return inwards book records?

Question 25 of 120

26. Correct balance sheet equation is?

Question 26 of 120

27. Which of the following is a solvency ratio?
(i) Debt equity ratio
(ii) Proprietary ratio
(iii) Gross profit ratio
(iv) Total assets to debt ratio

Question 27 of 120

28. What is the correct journal entry for rent outstanding?

Question 28 of 120

29. Z, the authorised signatory for the current account of ABC Limited has expired. The decision regarding payment of which of the following cheques is not correct:

Question 29 of 120

30. Accounts of banks should be audited by a person duly qualified under any law, to be auditors of the company, as per provisions of ............ and with approval of ...............?

Question 30 of 120

31. Posting in the ledgers, in a bank is on the basis of :

Question 31 of 120

32. A machinery costs Rs 2 lac. Its economic life is given as 5 years for a firm. Its salvage value is Rs 40000. What is the amount of annual depreciation?

Question 32 of 120

33. In............method, to calculate the depreciation, the percentage rate is applied to the residual balance instead of original cost;

Question 33 of 120

34. Ramesh, a pensioner getting pension through your branch approaches you to open a saving bank account in the name of his grandson under his guardianship. Which among the following precautions will be taken by the bank?

Question 34 of 120

35. Which among the following actions of a partner falls within his implied authority under Indian Partnership Act:

Question 35 of 120

36. The basic rule of book keeping i.e , debit the receiver and credit the giver is applicable to:

Question 36 of 120

37. Ram borrowed a sum of Rs 10000 from Shyam at 12% PA interest rate for 2years. What is the amount of total Interest payable?

Question 37 of 120

38. A company has invited the public to subscribe to its 50 lakhs equity shares of Rs 10 each by issuing a prospectus. This capital is known as:

Question 38 of 120

39. What is the correct journal entry for Rent received?

Question 39 of 120

40. ______days are added as grace days for finding due date of a bill of exchange?

Question 40 of 120

41. Between the consignor and consignee, which of the following type of relationship is established:

Question 41 of 120

42. Higher stock turnover ratio indicates
(i) Stock is being sold quickly
(ii) Low margin of profit
(iii) Stock is being sold slowly
(iv) High margin of profit

Question 42 of 120

43. Which of the following is not a feature of Revenue expenditure?

Question 43 of 120

44. The process of grouping of transactions or entries of one nature is called:

Question 44 of 120

45. A company issues 15000 shares of Rs 10 each at a discount of Rs 1 per share. What will be the amount of paid-up capital?

Question 45 of 120

46. The final Account of banking companies are to be prepared as per provisions of:

Question 46 of 120

47. With whom does a partnership firm registered:

Question 47 of 120

48. Yes Bank has made investment in govt. securities and also given loans against govt. guarantee. In the balance sheet these will be part of:

Question 48 of 120

49. Ms. Alka had deposited Rs 40000 with his bank at 12% interest for 2years. What will be amount, he likely to receive, if compounding is quarterly:

Question 49 of 120

50. Rishabh , A minor of 14 years is having a SB account and wants to make nomination in favour of his sister.

Question 50 of 120

51. Issue of shares at par means, when the shares are issued at a price:

Question 51 of 120

52. Spot exchange rate of USD/Re=45 and interest rate differential is 5%. The forward period is 180 days (No. of days in a year to be taken 360 days). Calculate the forward points.

Question 52 of 120

53. An annuity under which payment are made at the end of each period are known as;

Question 53 of 120

54. A business does not take into account, the future income. Similarly, the goods sold on approval are not included in the sales but these are taken at cost only. This is because of application of:

Question 54 of 120

55. Favourable balance means?
(i) Credit balance as per cash book
(ii) Debit balance as per cash book
(iii) Debit balance as per pass book
(iv) Credit balance as per pass book

Question 55 of 120

56. The identification of the type of account in which of the following transaction is not correct:

Question 56 of 120

57. Consistency with reference to application of accounting principles refer to?

Question 57 of 120

58. Debit balance as per Passbook Rs.6000. Dividend on shares collected by bank Rs.2000. Interest charged by the bank recorded twice in the Cash Book Rs.1000. Credit side of the Bank column in Cash Book cast short Rs.2000

Question 58 of 120

59. When an entry is partly omitted, it is classified as:

Question 59 of 120

60. Which of the following would not affect bank reconciliation?

Question 60 of 120

61. The responsibility to get the charge registered with Registrar of Companies, where the loan is given to a company is that of:

Question 61 of 120

62. AS 8 on Accounting for Research and Development?

Question 62 of 120

63. In which of the following methods of depreciation, the amount is kept aside to replace the machinery when it is worn out.

Question 63 of 120

64. If a partnership firm wants to create an equitable mortgage of its immovable property, who will deposit original title deed with the bank on behalf of the firm:

Question 64 of 120

65. Which of the following cannot be appointed a nominee?

Question 65 of 120

66. Loss on sale of plant and machinery should be written off against:

Question 66 of 120

67. If a 6% coupon bond is trading for Rs 950, it had a current yield of ............ percent.

Question 67 of 120

68. According to AS 25, interim period means:

Question 68 of 120

69. .................. is the discount rate, which equals the present value of promised cash flows to the current market price/purchase price.

Question 69 of 120

70. The sensitivity of bond price to changes in interest rates is called:

Question 70 of 120

71. Where the preference shares are cumulative, what happens when a company is unable to declare dividend in a particular year due to losses:

Question 71 of 120

72. Which of the following is an important feature of small deposit accounts?
(i)Where the maximum balance shall not exceed Rs 50000
(ii) Total of credit entries in the account would not exceed Rs1 lakh during a year
(iii) Monthly withdrawal is not more than Rs 10000

Question 72 of 120

73. Where the preference share that are repaid back after some time as per terms of the issue of such share are called:
(i)Redeemable
(ii) Irredeemable
(iii) Subsidiary

Question 73 of 120

74. Annual depreciation of machine is 32000, cost of machine is 4 Lakh, rate of depreciation according to straight-line method will be

Question 74 of 120

75. Value of an asset is 10 lakh, scrap value is 1.25 lakh, estimated life is 10 years. The amount of depreciation under straight-line method will be?

Question 75 of 120

76. Depreciation is not applicable to which of the following asset?

Question 76 of 120

77. Depreciation is a process of?

Question 77 of 120

78. The expenditure, the benefit of which is not consumed in just one year and is available for a no. of years is called:

Question 78 of 120

79. A small deposit account as per Govt. guidelines is valid for:

Question 79 of 120

80. Under Rules relating to Prevention of Money Laundering Act, the banks are required to preserve documents of identity and address:

Question 80 of 120

81. A company XYZ Limited obtains a loan of Rs.10 crore from ABC Bank. The registration of charges shall not be required if such loan is:

Question 81 of 120

82. What is the correct journal entry for Salary paid?

Question 82 of 120

83. Capital at end is Rs 21,500, drawings are Rs 4,000 and profits given to partner is equal to Rs 6,000; then opening capital is equal to:

Question 83 of 120

84. The premium on shares received by a company cannot be used by the company for which of the following purpose:

Question 84 of 120

85. The discount factor at 10% rate of interest p.a. is 0.909 at the end of 1st year, 0.826 at the end of 2nd year, 0.751 at the end of 3rd year. If the cash inflow for 2nd and 3rd year from a project is Rs 10000 each, what is the present value of cash flow for 3rd year.

Question 85 of 120

86. The Modified duration is calculated as;

Question 86 of 120

87. Distinction between an expenditure whose benefit will be for a long period and whose benefit for a short period of say up to one year, is made under which of the following:

Question 87 of 120

88. If the change in yield of a bond is given and modified duration is also given, the percentage change in the price of the bond can be calculated as:

Question 88 of 120

89. In which of the following circumstances, there can be more than one nominee:

Question 89 of 120

90. US-GAAP is issued by which of the following?

Question 90 of 120

91. Spot Euro=USD 1.4200/10. One month forward 40-35, 2month forward 75-70, 3 months forward 105-100. 1 month Euro can be sold at:

Question 91 of 120

92. If bank wants to rectify and error, which type of voucher will be created:

Question 92 of 120

93. Which ratio is known as Short Term Solvency Ratio?

Question 93 of 120

94. Current ratio is a relationship of_______ asset and ________ liabilities

Question 94 of 120

95. ABC ltd has a higher current ratio. This simply means that

Question 95 of 120

96. For small deposit account under KYC guidelines, certain relaxation from KYC requirements is allowed. For this purpose, the term small depositors mean:

Question 96 of 120

97. Which of the following is a capital expenditure?

Question 97 of 120

98. A firm purchased machinery of Rs.2,00,000 on January 10, 2009. The useful life of the machinery is 5 years. What is amount of annual depreciation if the scrap value is Rs.20000.

Question 98 of 120

99. A firm had purchased machinery of Rs.2 lac with expected life of 6 years. The scrap value is Rs.20000. The machinery is sold at the end of 4th year, for Rs.85000. What is the profit or loss, on sale of machinery?

Question 99 of 120

100. ABC Ltd. has current ratio of 2:1. A bill is dishonoured. What will be its effect on the current ratio?

Question 100 of 120

101. In the context of Authorised capital of a company, choose the correct option?
(i) It cannot exceed paid up capital
(ii) It can exceed called up capital
(iii) It is required to be disclosed in memorandum of association
(iv) It is not required to be disclosed in memorandum of association

Question 101 of 120

102. On admission of a new partner, the revaluation of assets is taken up. The increase or decrease in their value is adjusted through an account, called:

Question 102 of 120

103. The value at which a bond is traded on a stock exchange is called:

Question 103 of 120

104. 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:

Question 104 of 120

105. .......... Can be defined as inflow of assets that results in an increase in owner's equity:

Question 105 of 120

106. Mr. Rishabh had deposited Rs20000 with his bank at 12% p.a interest for 2 years. What will be amount, he is likely to receive, if compounding is half-yearly.

Question 106 of 120

107. Minimum number of directors in a public limited company is:

Question 107 of 120

108. If account is opened for a low-risk customers without proper due diligence, in What Time the customer verification should be completed:

Question 108 of 120

109. A coupon bond pays annual interest, has a per value of Rs 1000 matures in 4 years, has a coupon rate of 10% and has a yield to maturity of 12%. The current yield on this bond is?

Question 109 of 120

110. On 01.04.2014 bills for collection were 14 lacs. During 2014-15 bills received for collection amounted to 129 lacs. Bills collected were 95 lacs. Bills dishonoured was 11lacs. What is the amount of bills for collection at end of the financial year?

Question 110 of 120

111. What is the maximum discount that a company can offer on issue of fresh equity shares?

Question 111 of 120

112. Monthly cash transaction report (CTR) is to be submitted by the bank to FIU within:

Question 112 of 120

113. Which of the following features of accounting system in banks is incorrect?

Question 113 of 120

114. The loss on sale of an asset is debited to?

Question 114 of 120

115. Which among the following is not a reason for depreciation?

Question 115 of 120

116. Banks are required under KYC guidelines, to review the risk categorization of customer accounts at least once within a period of:

Question 116 of 120

117. Firm A has three partners A, B and C with a sharing ratio of 4:3:2. Partners C wants to retire. What will be new sharing ratio of partners A and B.

Question 117 of 120

118. The time period during which the charge can be filed for registration is restricted. Which of the following is not correct in this context?

Question 118 of 120

119. Cost of Goods sold is equal to:

Question 119 of 120

120. Value of asset can become zero in_____method:

Question 120 of 120