Basic Accountancy Procedures – Quiz 1

Basic Accountancy Procedures is the Second Unit (Unit 2) under Module A: Accounting Principles and Processes of Paper – III (Accounting & Financial Management for Bankers)

If you are appearing for the Upcoming JAIIB Exams, it is important to understand the fundamental concepts of the Topics and clear your doubts. We have prepare and collected some fundamental questions and answers in the form of MCQ Questions and Answers arranged into multiple Quizzes having 10 Questions in each Quiz. It can help you to understand the topics. A solid fundamental understanding will build your confidence and encourage you to think critically and enables you to answer the JAIIB Questions correctly in the Exam and increase your chances to pass the exam with flying colors. It is advisable to practice these Questions and Answers on regular basis to raise your confidence Level.

Practice MCQ Question and Answer – Basic Accountancy Procedures

Quiz 1

1. Why are uniform, scientifically laid down standards necessary in accounting ?





….
Answer is (c)
To ensure intelligibility and common understanding

2. What are the standards termed as, which are necessary for making the language of business intelligible and commonly understood ?





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Answer is (d)
Accounting principles

3. According to the cost concept described, how are fixed assets typically recorded in the books of accounts ?

  1. At their market value
  2. At their cost of Purchase
  3. At their future value
  4. At their replacement cost




….
Answer is (b)
At their cost of Purchase

4. What does the cost concept suggest regarding unrealized gains ?

  1. Unrealized gains are recorded in the books
  2. Unrealized gains are ignored
  3. Unrealized gains are recorded at their market value
  4. Unrealized gains are recorded at their future value




….
Answer is (a)
Unrealized gains are ignored

5. What concept mandates that every transaction recorded in the books of accounts must be measured in terms of money ?





….
Answer is (b)
Money measurement concept

6. How does the money measurement concept affect the inclusion of the proprietor’s or manager’s health in the books ?





….
Answer is (b)
It does not require the inclusion of health-related factors

7. What does the money measurement concept dictate regarding inflation or deflation in the value of assets ?





….
Answer is (d)
It disregards inflation or deflation in asset values

8. According to the cost concept, how are items with no cost treated in the books ?

  1. They are recorded at their future value
  2. They are recorded at their market value
  3. They are ignored
  4. They are recorded at their historical cost




….
Answer is (d)
They are ignored

9. According to the money measurement concept, what is the common form used to measure transactions ?





….
Answer is (d)
Money

10. What approach is followed for recording transactions according to the cost concept ?

  1. Recording transactions at their Present Value
  2. Recording transactions at their future value
  3. Recording transactions at their market value
  4. Recording transactions at their replacement cost




….
Answer is (a)
Recording transactions at their Present Value
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Quiz Numbers

1

Read More: MCQ Type Questions and Answers from Paper – III (Accounting & Financial Management for Bankers)

Module A: Accounting Principles and Processes

Module B – Financial Statements and Core Banking Systems

  • Balance Sheet Equation
  • Preparation of Final Accounts
  • Company Accounts – I
  • Company Accounts – II
  • Cash Flow & Funds Flow
  • Final Accounts of Banking Companies
  • Core Banking Systems & Accounting in Computerised Environment

Module C – Financial Management

  • Financial Management – An Overview
  • Ratio Analysis
  • Financial Mathematics – Calculation of Interest & Annuities
  • Financial Mathematics – Calculation of YTM
  • Financial Mathematics – Forex Arithmetic
  • Capital Structure and Cost of Capital
  • Capital Investment Decisions/Term Loans
  • Equipment Leasing/Lease Financing
  • Working Capital Management
  • Derivatives

Module D – Taxation and Fundamentals of Costing

  • Taxation: Income Tax/TDS/Deferred Tax
  • Goods & Services Tax
  • An Overview of Cost & Management Accounting
  • Costing Methods
  • Standard Costing
  • Marginal Costing
  • Budgets and Budgetary Control