JAIIB MCQs | Definition, Scope and Accounting Standards including Ind AS | Quiz 4

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 4

1. What does the phrase “Accounting is the Language of Business” imply ?

  1. Accounting communicates the financial results and performance of an enterprise to various users.
  2. Accounting is primarily used for internal management decisions.
  3. Financial statements are the means through which accounting communicates business information.
  4. Accounting only deals with tax reporting and compliance.




….
Answer is (b)
Accounting communicates the financial results and performance of an enterprise to various users and Financial statements are the means through which accounting communicates business information.

2. Under the Cost-Plus Transfer Pricing method, what is typically added to the standard cost of a component ?

  1. A discount for internal transactions. 
  2. A gross margin to account for external factors. 
  3. A profit margin to reflect a fair return for the producing subsidiary.
  4. The final sale price to the third party.




….
Answer is (c)
A profit margin to reflect a fair return for the producing subsidiary.

3. In transfer pricing, a preferred supplier is typically which of the following ?





….
Answer is (b)
A subsidiary within the same parent company

4. Which of the following standard addresses Investment Property ?





….
Answer is (b)
IAS 40

5. When does the Negotiated Transfer Pricing is most likely used ?





….
Answer is (b)
The goods are highly specialized, and market prices do not exist.

6. Which of the following standard provides guidelines on Construction Contracts ?





….
Answer is (a)
IAS 11

7. Which of the following standard addresses Employee Benefits ?





….
Answer is (d)
IAS 19

8. What role does the IFRS Foundation play in ensuring global financial reporting consistency ?

  1. It sets guidelines only for developed nations.
  2. It focuses solely on tax compliance. 
  3. It promotes the convergence of national accounting standards with IFRS.
  4. It enforces regionally adapted accounting practices.




….
Answer is (c)
It promotes the convergence of national accounting standards with IFRS.

9. Which of the following reflects the complexity and nuances specific to different industries under GAAP ?





….
Answer is (a)
Generally accepted industry practices

10. IFRS is particularly useful in which of the following scenarios ?





….
Answer is (d)
For companies looking to improve cross-border financial comparisons and transparency

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Quiz Numbers

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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