Operational Aspects of Accounting Entries – Quiz 1

Operational Aspects of Accounting Entries is the Ninth Unit (Unit 9) 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 – Operational Aspects of Accounting Entries

Quiz 1

1. In what terms are financial transactions always recorded ?

  1. In terms of quantity of goods.
  2. In terms of number of employees.
  3. In terms of monetary units.
  4. In terms of time duration.




….
Answer is (b)
In terms of monetary units

2. Why is it important to record financial transactions ?

  1. To provide stakeholders with a financial position at the beginning of the Accounting Period
  2. To prepare the balance sheet and the P&L account.
  3. To provide stakeholders with a fair picture of results of operations during the Accounting Period
  4. To hide financial information from stakeholders.




….
Answer is (c)
To prepare the balance sheet and the P&L account and To provide stakeholders with a fair picture of results of operations during the Accounting Period

3. In Banking operations, what is the sequence of entering accounting entries?





….
Answer is (d)
Entries are made in the ledger accounts, then in the journal and finally in the control account

4. How are accounting entries authenticated in manual operations in a Bank ?





….
Answer is (d)
By the Authorized Officer of the Branch.

5. What is the role of the Branch staff in computerized operations of accounting entries ?





….
Answer is (b)
They only enter accounting entries into the system.

6. How many corresponding entries should every credit or debit accounting entry have in the double-entry system ?





….
Answer is (c)
One or more

7. Why is it important for bank staff to understand the manual system of accounting ?

  1. Clarity about the Process Involved
  2. To have a backup in case of system failures.
  3. To efficiently reply to customer queries.
  4. To be able to respond to auditor queries.




….
Answer is (b)
Clarity about the Process Involved, To efficiently reply to Customer and Auditor queries

8. In bank accounting, where is the total of entries from the journal finally posted ?





….
Answer is (a)
Control account of the General Ledger

9. What role does the control account in the General Ledger play in bank accounting ?

  1. It is used to prepare the balance sheet
  2. It is used to summarize all transactions from different ledgers
  3. It is directly involved in making manual entries
  4. It is where physical ledgers are recorded




….
Answer is (a)
It is used to prepare the balance sheet and summarize all transactions from different ledgers

10. How are manual entries processed in bank accounting ?

  1. Entries are directly entered into the journal by staff
  2. Entries are first made in the physical ledgers by staff
  3. Entries are posted to the control account first
  4. Entries are summarized and recorded in the journal (day book)




….
Answer is (b)
Entries are first made in the physical ledgers by staff and Entries are summarized and recorded in the journal (day book)

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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