jaiib_mocktest_ppb

7/23/2019 JAIIB_MockTest_PPB

1/19

the following is true ?

Receipt of Rs. 1 Lac as award for the innovation is atransaction

Increase in the market value of shares is a transaction

Receipt of certificate for the innovation is atransaction

Increase in the prices of raw material is a transaction

Which one of the following is false ?

Death of a senior manager of the firm is a transaction


Increase in the market value of shares is not atransaction

Extending the period of a fixed deposit receipt is not atransaction

Which one of the following is true ?

Increase in the market value of investment is a

transactionIncrease in the value of Rupee against US Dollar is atransaction

Redemption of deentures issued ! the compan! is atransaction

Extending the period of a "ixed Deposit Receipt is atransaction

Which one of the following is true ?

Increase in the market value of investment is a

transaction

Increase in the value of Rupee against US Dollar is atransaction

Redemption of deentures issued ! the compan! is atransaction

Extending the period of a "ixed Deposit Receipt is atransaction

Debit what comes in, Credit what goes out will represent -----

#ominal accounts

Real accounts

$ersonal accounts

%rtificial accounts

Balance sheet gives the position -----

of the !ear

of the alances during the !ear

as on the last da! of the !ear

&nl! for the last !ear

The bill of exchange is drawn on which party ?

Detor


2/19

'reditor

$a!ee

Seller

promissory note is written by -----

'reditor

Detor

Seller

$a!ee

Which of the following statements is true ?

% ill of exchange is not a negotiale instrument

% ill of exchange need not e dated

% ill of exchange must e accepted ! the drawer

%mount of the ill is paid to the pa!ee

!inal accounts are prepared to show -----

(usiness results

"inancial position

(usiness results and financial position

(alances of general ledger

"ow the #Closing $toc%# is shown in final accounts ?

Deit side of trading account and asset side of alance sheet

'redit side of the trading account and liailities side of alancesheet

'redit side of trading account and asset side of alance sheet

'redit side of trading account

&romotional expenditure of 's(),**,***+- for promoting export sales in a new country whichresulted in high success is -----

'apital expenditure

Revenue expenditure

Deferred revenue expenditure


3/19

Discharge of liailit!

Balance sheet discloses -----

'ash position of the usiness

"inancial position of the usiness

$rofit earning capacit! of the usiness

Income position of the usiness

Bad debts recovered written off in the same year are recorded as -----

Detors account deit and ank account credit

(ank account deit and detors account credit

(ank account deit and ad dets account credit

Detors account deit and ad dets account credit

W. denotes -----

)ith area network

)ide area network

)orld area network

)ithout area network

When share applications are received, what accounting entry is recorded ?

Deit ank account and credit share capital account

Deit ank account and credit share allotment account

Deit ank account and credit share application account

Deit ank account and credit share ad*ustment account

Which of the conditions for issue of non-voting e/uity shares is applicable ?

Issue of non+voting e,uit! sharesshall e authorised ! the %rticles of%ssociation of the compan! andapproved ! the shareholders at theirgeneral od! meeting ! passing aspecial resolution

Such shareholders are entitled to allrights and onus shares ut do noten*o! voting rights

&nl! -/ of the paid+up capital ofthe compan! can e issued as e,uit!shares without voting rights

%ll of the aove

ccounting concepts are %nown as -----


4/19

%ccounting conventions

0%$$

US + 0%$$

%ccounting records

company may follow -----

'ash asis of accounting

ercantile asis of accounting

2!rid method of accounting

#one of these

!inancial statements are prepared to %now -----

%ssets of the usiness entit!

$rofit and loss of the usiness entit!

Liailities of the usiness entit!

%ll of these

ccounting standards are issued by -----

Institute of 'osts and )orks

%ccountants of India

Institute of 'ompan! Secretaries ofIndia

Institute of 'hartered %ccountants ofIndia

Indian Institute of anagement

person whose assets exceed his liabilities is called -----

Detor

Solvent

Insolvent

'reditor

Classified details of particular transactions is called -----

'ash ook

Ledger

3ournal

4rial alance


5/19

Dual concept results in accounting e/uation -----

'apital 5 Liailities 6 %ssets

'apital 6 %ssets

Revenue 6 Expenditure

'apital 5 $rofit 6 %ssets 5 Expenditure

Dual concept results in accounting e/uation -----

'apital 5 Liailities 6 %ssets

'apital 6 %ssets

Revenue 6 Expenditure

'apital 5 $rofit 6 %ssets 5 Expenditure

Which one of the following is false ?

Death of a senior manager of the firm is a transaction


Increase in the market value of shares is not atransaction

Extending the period of a fixed deposit receipt is not atransaction

0ndian 1il Company 2TD( is ----- account(

Real

$ersonal

#ominal

%rtificial real

Which of the following is not part of floating assets ?

Detors

'op!rights

Land and uilding

(oth 78 and 7 c8 aove

When depreciation is charged on furniture, furniture account is -----

Deited

'redited

#o effect is given

(oth deited and credited

The bill of exchange is drawn on which party ?

Detor


6/19

'reditor

$a!ee

Seller

promissory note is written by -----

'reditor

Detor

Seller

$a!ee

There are ----- parties in promissory note(

4hree

4wo

"our

&ne

!inal accounts are prepared to show -----

(usiness results

"inancial position

(usiness results and

financial position(alances of general

ledger

Balance sheet is

prepared to show-----

"inancial positionof the usinessconcern at thepoint of time

Results ofusiness of over

a period of time

% statementshowing assetsand liailities

(oth 7a8 and 7 c8aove

Which of thefollowing is true ?

#ominal accountcannot etransferred toalance sheet


7/19

(alance sheet isan account

'arriage inwardis deited toprofit and lossaccount

'losing stock is

alwa!s valued atcost price

&ayment of

's(3),***+- to 4r( for goodspurchased from himon credit is -----

'apitalexpenditure

Revenueexpenditure

Deferredrevenue

expenditure

Discharge ofliailit!

&ayment of leaserent of 's(5*,***+-for the factory for

current month is-----

'apitalexpenditure

Revenueexpenditure

Deferredrevenueexpenditure

Discharge ofliailit!

'eceipt of

's(6,***+- onaccount of sale old

tyers of the car is-----

'apital receipt

Revenue receipt

Receipt againstdues

Deferredrevenue receipt

Bad debtsrecovered written

off in the sameyear are recorded

as -----

Detors accountdeit and ankaccount credit


8/19

(ank accountdeit and

detors accountcredit

(ank accountdeit and addets account

creditDetors accountdeit and ad

dets accountcredit

2.+W. is usedby -----

Single user

Doule user

ultiple users

Limited users

When shareapplications are

received, whataccounting entry isrecorded ?

Deit ank

account andcredit sharecapital account

Deit ankaccount andcredit shareallotmentaccount

Deit ankaccount andcredit shareapplicationaccount

Deit ankaccount andcredit share

ad*ustmentaccount

Which of theconditions for issue

of non-votinge/uity shares is

applicable ?Issue of non+

voting e,uit!shares shall eauthorised ! the%rticles of%ssociation ofthe compan! andapproved ! theshareholders attheir general


9/19

od! meeting !passing a special

resolution

Suchshareholders areentitled to allrights and onus

shares ut do noten*o! votingrights

&nl! -/ of thepaid+up capital ofthe compan! cane issued ase,uit! shareswithout voting

rights

%ll of the aove

Which of thefollowing is not

part of #!ixed

ssets# in acompany balancesheet ?

0oodwill

Stock in trade

$atents9trademarks anddesigns

$lant andmachiner!

company mayfollow -----

'ash asis of

accounting

ercantile asisof accounting

2!rid methodof accounting

#one of these

2782

$&7CT$

ban%ing company can hold the immovable property beyond stipulate period if -----it is re,uired for its ownuse

it is for rental purpose

the propert! has gooddevelopment potential

propert! is ac,uired insatisfaction of its claims

The Ban%ing 1mbudsman is instituted mainly for settling disputes -----


10/19

(etween customers ofanks

(etween anks

(etween anks and thecustomers

(etween anks and

customers elonging toweaker sections

ban%er is entitled to debit the customer9s account in case of forgery of customers signatureon the che/ue provided -----

4he anker does not dout the onafides of the earer of the che,ue

4he anker examines the che,ue under an ultra violet lamp

4he signature though forged tallies in all respects

#one of the aove

ban%ing company can hold the immovable property beyond stipulate period if -----

it is re,uired for its own use

it is for rental purpose

the propert! has good development potential

propert! is ac,uired in satisfaction of its claims

The Ban%ing 1mbudsman is instituted mainly for settling disputes -----

(etween customers ofanks

(etween anks

(etween anks and the

customers

(etween anks and

customers elonging toweaker sections

Which one of the following statement is incorrect?

Special audit ma! e conducted onl! in the case of fraud

Special audit ma! relate to an! transaction

Special audit ma! relate to an! class of transactions

Special audit ma! relate to an! period specified ! the Reserve (ank

The capital of the $tate ban% of 0ndia is held -----

(! 'entral government alone

ainl! ! Reserve ank

(! the susidiar! anks

4he government and the pulic onl!

co-operative ban% includes -----


11/19

% primar! credit societ!

% primar! agricultural

credit societ!

%n uran:primar! co+operative ank

% land mortage ank

ban%er is entitled to debit the customer9s account in case of forgery of customers signatureon the che/ue provided -----

4he anker does not dout the onafides of the earer of the che,ue

4he anker examines the che,ue under an ultra violet lamp

4he signature though forged tallies in all respects

#one of the aove

ban%er can claim protection in respect of payment of che/ue under -----

(anking Regulation %ct

#egotiale Instruments %ct

SE(I %ct

%ll of the aove

&ayment in due course means -----

$a!ment in accordance with theapparent tenor of the instrument

$a!ment in good faith withoutnegligence

$a!ment to the person inpossession of the instrument

without having reason to elievethat such person is not entitled tothe amount mentioned in theinstrument

%ll of the aove

he term :4aterial lteration; in the case of a negotiable instrument means -----

%n! alteration to the instrument

%n! alteration of an instrument which

varies the rights9 liailities or legalposition of the parties

&nl! alteration which either increasesthe amount or extends the date

&nl! alteration that changes the pa!eesname

0n a che/ue, the signature and writing were forged, and forgery was so perfect that it was notpossible to detect it with the na%ed eyes( The ban% can plead that the payment was made -----

under mistake

ecause forger! was ver! perfect

in good faith


12/19

#one of the aove

0n Ban% guarantees the ban% ma%es payment on -----

(eing convinced that the eneficiar! has incurred loss

&n eing sued ! the eneficiar!

&n invocation of guarantee and after seeking concurrence of

the detor

erel! on demand ! the eneficiar!

Ban%s can issue -----

financial guarantee

performance guarantee

Deferred pa!ment guarantee

%ll of the aove

The dvising Ban% is also called the -----

'onfirming (ank

#otif!ing (ank

Reimursing (ank

#one of the aove

n usance bill is a bill payable -----

&nl! on demand ! the holder

%t a specific date mentioned therein

$a!ale onl! to the holder of the ill

)here the pa!ment is in a foreign currenc!

"ypothecation is -----

$ledge

ortgage of movale propert!

(oth 7a8 and 78 aove

#one of the aove

contract by a ban% to lend money to an individual will be governed by which of the followinglaws ?

Reserve (ank of India %ct

Indian 'ontract %ct

(anking Regulation %ct

one! Lenders %ct


13/19

The ban% can lend money to -----

minor for usiness activit!

minor for personal gain

minor for purchasing necessaties of life

#one of the aove

1n what ground the complaint for deficiency in ban%ing service can be filed with the Ban%ing

1mbudsman ?

Refusal to open deposit accounts without an! valid reason for refusal

#on sanction of loan

#ot accepting the compromise proposal in #$% account

(ank;s taking possession of securit! and sale thereof

proposes to sell the house to B( The proposal is complete -----

)hen % sends his proposal

)hen ( receives letter


#one of the aove

person signed without reading the contents of standard format of document, he is -----

(ound ! the terms of the document

#ot ound ! the terms of the document

Entitled to outrightl! re*ect the document

#one of the aove

The delivery of goods to the Bailee means -----

%n act9 the effect of which is putting the goods in the possession of intended ailee

Delivering cash to the intended (ailee

Delivering immovale propert! to the intended (ailee

#one of the aove


14/19

)ill discharge the other

Does not discharge the other

)ill give new cause of action

#one of the aove

guarantees to C payment for iron to be supplied by him to B to the amount of =*** tons( B

and C have privately agreed that B should pay ) rupees per ton beyond the mar%et price( $uchexcesses had to be applied in li/uidation of old debt( This agreement is concealed from (Therefore -----

Is liale as a suret!

Is partl! liale as a suret!

Is not liale as a suret!

#one of the aov

0n a Contract of Bailment Bailor is bound to disclose the defects in the goods bailed to Bailee-----

of which the (ailor is aware

which materiall! interferes with the use of them

which exposes the (ailee to the extraordinar! risks

all of the aove

Principles and banking

2C is a popular product of ban%s( This is

a funding facilit! called letter of credit

it is funded facilit! called line of credit

it is a non+fund facilit! called line of credit

none of the aove

C0B02 is an organi>ation which is engaged in

collecting and distriuting information to anks

collecting application details and sumitting applications to anks

collecting and recommending loans to anks and guaranteeing the same

collecting and maintaining credit record of oth individual and usiness customers for the enefit ofanks

C0B02 is an organi>ation which is engaged in

collecting and distriuting information to anks

collecting application details and sumitting applications to anks


15/19

collecting and recommending loans to anks and guaranteeing the same

collecting and maintaining credit record of oth individual and usiness customers for the enefit of

anks

aluation of inventory is done using various methods( 1ne such is !021( The full form of this is

first in lost out

first in last out

firm in lest out

none of the aove

0n a ban% guarantee issued to customer ban% assumes the role of

principal

eneficiar!

guarantor

none of the aove

Bill discounting is done by ban%s in case of only

after sight ills

demand ills

after sight usance ills

after date ills

Documents of title to goods do not include

railwa! receipt

motor transport receipt

ill of lading

none of the aove

D'T ct is the popular name for

Det rehailitation trust

Recover! of Dets due to anks and "Is

Det rehailitation triunal


16/19

#one of the aove

T4s are typically deployed by ban%s for@@@@@@

wholesale anking

merchant anking

retail anking

all the aove

$avings accounts contain some restrictions regarding@@@@@

#umer of withdrawals per ,uarter

%mount of withdrawals per transaction in %4

#umer of deposits into the account per ,uarter


ban%9s !ixed Deposits is characteri>ed by@@@@

"ixed:"loating interest rate as agreed with the customer at the time of thedeposit

"ixed period of the deposit

$eriodical Repa!ment of interest

%ll the aove

Anow our Customer AC guidelines are intended to @@@@

Estalish identit! with residence proof of the customers

$revent fictitious or =(enami; transactions

$rotect the ank from the risk of not acting in good faith

%ll the aove

0n ban%ing transactions, a customer is recogni>ed by his+ her@@@

Signature on record with the ank

$hotograph

2and writing

>oice

4r( is not maintaining the minimum balance in his account and is in the habit of issuing

che/ues without maintaining sufficient balance(,"is account has become an undesireableaccount due to unsatisfactory operations("e does not agree to close the account even after

repeated oral re/uests (0n this case,the ban% has @@@

right to close the account once che,ue ook gets exhausted


17/19

. right to close the account after serving notice and can close the account onexpir! of the notice period

c. right to close the account after giving pulic notice in the notice oard of theank

no right to close the account under the (anking &mudsman scheme

BC Ban% 2td filed a suit exclusively against the guarantor and did not opt to proceed against

the borrower(0n this case,which of the following is correct?

0uarantor is a favoured detor and the anks action is legall! not tenale

the ank has no right to proceed against the guarantor without concurrentl!proceeding against the orrower

the ank can not proceed against the suret! as suret! stands discharged ! suchaction of the ank

the ank can proceed against the ,uarantor and the ank;s action is certainl!tenale

n actionable claim is assigned in favour of more than one assignee at different points oftime(The priority of charge is determined with reference to the date of @@@@

execution of notice of assignment

execution of the written instrument for assignment

receipt of notice of assignment

receipt of written instrument for assignment

4r( has given his residential building in mortgage to a ban% for a housing loan(s he hasdefaulted for payment of 0ncome Tax,the 0ncome Tax uthorities sold the building for recovering

the dues(0n this case,@@@@@

(ank loan has precedence over income tax dues

Income tax dues are 0overnment dues and hence the! en*o! priorit!

(oth ank and Income 4ax Department can have pro rata claim

(ank will have precedence onl! if it is a registered mortgage

The document to be verified to ascertain the borrowing powers of directors is @@@@

emorandum of %ssociation

%rticles of %ssociation

'ertificate of incorporation

(oard Resolution

full-fledged T4 can offer the following services to customers 6( Cash Dispensing =( Deposit ofCash+Che/ues 3( tility &ayments li%e telephone bills, electricity bills etc ( 0ssue of Che/ue

boo%s Choose the most appropriate answer from the followingStatement 19-9? and @ are true

Statement 19- and ? are true

Statement -9? and @ are true

Statement 19? and @ are true

The following is not a feature of 'T8$E'eal Time 8ross $ettlement $ystemF


18/19

Instruction $rocessing

Settlement $rocessing

Li,uidit! anagement

$rofitailit! anagement

&0. in $mart Card is called ---

$ermanent Index #umer

$ersonal Identification #umer

$ersonal Index #umer

$ermanent Identification #umer

40C' technology used for clearance of che/ues by ban%s refers to -----

agnetic Ink 'haracter Recognition

agnetic Intelligence 'haracter Recognition

agnetic Information 'ale Recognition

agnetic Insurance 'ases Recognition

The term G"T429 connotes H

2!per 4ext arkup Language

2!per 4ranscription arkup Language

2igh 4ext arkup Language

2igh 4erminal arkup Language

!ixed deposits cannot be@@@@@@@@

Renewed for a further period on maturit! date

4ransferred to third parties

$re+paid efore the maturit! date

%ll the aove

.omination is not applicable in the case of@@@@@@

%ccount of an individual

3oint account of two or more individuals

%ccount of 2indu Undivided "amil! 72U"8

%ccount of a compan!

!or 0nternet Ban%ing a customer re/uires@@@@@

$ersonal 'omputer and telephone link

$ersonal 'omputer9 telephone line9 modem and Internet Service $rovider


19/19

$ersonal 'omputer9 telephone link and modem

$ersonal 'omputer9 telephone link and Internet Service $rovider