JAIIB MCQs | Definition, Scope and Accounting Standards including Ind AS | Quiz 2

Definition, Scope and Accounting Standards including Ind AS is the First Unit (Unit 1) 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 MCQ 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 – Definition, Scope and Accounting Standards including Ind AS

Quiz 2

1. When was the Accounting Standards Board (ASB) constituted ?





….
Answer is (a)
21st April 1977

2. What consequence do auditors, who are members of ICAI, face if they fail to qualify their audit reports for not adhering to mandatory accounting standards ?





….
Answer is (c)
They are guilty of professional misconduct

3. Which law requires companies to maintain proper accounting records ?

  1. Public Trust Act
  2. Companies Act
  3. Income Tax Act
  4. Societies Act




….
Answer is (d)
Public Trust Act, Companies Act, Income Tax Act and Societies Act

4. Which of the following accurately describe accounting as defined by the American Institute of Certified Public Accountants (AICPA) ?

  1. An art of recording, classifying, and summarizing transactions and events.
  2. A science of predicting economic outcomes with precision.
  3. An interpretation of financial transactions and events in terms of money.
  4. A process that involves financial and non-financial transactions.




….
Answer is (b)
An art of recording, classifying, and summarizing transactions and events and an interpretation of financial transactions and events in terms of money.

5. Which of the following statements accurately describe bookkeeping ?

  1. Recording business transactions in the books of original entry and in the ledgers.
  2. Analysis and interpretation of financial statements.
  3. It is a part of the broader field of accountancy.
  4. It focuses on preparing reports to assess the financial health of a business.




….
Answer is (b)
Recording business transactions in the books of original entry and in the ledgers and It is a part of the broader field of accountancy.

6. What are Accounting Standards (AS) ?

  1. A collection of tax regulations.
  2. Set of rules and criteria that govern the recording of events in accounts.
  3. Guidelines that ensure financial statements are prepared consistently and transparently.
  4. A framework for setting company policies.




….
Answer is (a)
Set of rules and criteria that govern the recording of events in accounts and Guidelines that ensure financial statements are prepared consistently and transparently.

7. Which body is responsible for developing IFRS under the IFRS Foundation ?





….
Answer is (d)
International Accounting Standards Board (IASB)

8. Under which section of the Companies Act 2013 are auditors required to qualify audit reports that do not conform to mandatory accounting standards ?





….
Answer is (a)
Section 134(5)

9. GAAP principles are primarily used for accounting and financial reporting in which country ?

  1. United Kingdom
  2. United States of America
  3. Canada 
  4.  Australia




….
Answer is (b)
United States of America

10. Which accounting standard deals with the disclosure of accounting policies ?





….
Answer is (a)
AS 1

<<
>>

Quiz Numbers

1
2
3
4
5

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