JAIIB Exam 2025 – AFM Important Questions MCQs Quiz-1

30/01/2025

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JAIIB Exam 2025 AFM Important Questions MCQs Quiz-1

JAIIB Exam Quiz 2025: The JAIIB exam is scheduled for 2025 by IIBF. Here, we are providing JAIIB AFM MCQ-based quizzes on a regular basis. You can attempt the quizzes regularly to prepare for the upcoming JAIIB exam. The quizzes will be provided module-wise and unit-wise. You can attempt the JAIIB AFM quizzes from the links below and improve your preparation by practicing regularly. These quizzes will help you boost your score in the JAIIB exam and guide you to clear the exam on your first attempt.

Q.1. Which of the following statements best describes the significance of stewardship accounting in the evolution of modern financial reporting?
A. It introduced advanced financial instruments to facilitate global trade.
B. It laid the foundation for systematic recording of transactions and accountability in financial reporting.
C. It replaced the need for double-entry bookkeeping by simplifying accounting processes.
D. It was primarily focused on managing speculative financial assets for wealth creation

Q.2. What is the primary social purpose of financial accounting ?
A. To ensure that company directors can avoid full disclosure of financial information.
B. To mobilize savings and channel them into profitable investments by providing reliable information to investors.
C. To limit the liability of shareholders in case of company failure or liquidation.
D. To focus on maintaining the confidentiality of company financial data from the public

Q 3. Which of the following best captures the primary role of management accounting?
A. To record and analyze past financial transactions based on generally accepted accounting principles (GAAP).
B. To ensure compliance with legal regulations and accounting standards in financial reporting.
C. To focus on preparing financial statements like the income statement and balance sheet for shareholders.
D. To assist management in policy formulation and decisionmaking by providing forward-looking, unconstrained accounting information.

Q.4. What is the primary focus of social responsibility accounting?
A. To maximize profitability by focusing solely on economic effects.
B. To ensure compliance with traditional financial accounting standards.
C. To evaluate and report the social and environmental effects of business decisions in addition to economic outcomes.
D. To measure growth and profit as presented in conventional balance sheets

Q.5. What is the primary objective of inflation accounting?
A. To adjust the value of assets and profits to reflect changes in the price level, correcting distortions in financial statements.
B. To replace historical cost accounting with cash-based accounting methods.
C. To enhance the accuracy of financial statements without addressing price level changes.
D. To simplify accounting practices by eliminating the concept of a stable monetary unit.

Q.6. What is the primary purpose of value accounting?
A. To track only the tangible contributions made by contributors in a business process.
B. To simplify revenue allocation by ignoring individual contributions.
C. To evaluate and capture individual contributions, both tangible and intangible, ensuring fair distribution of future revenue.
D. To replace traditional accounting practices with a focus solely on production metrics.

Q.7. What is a key challenge in the adoption of fair value accounting?
A. It only focuses on historical costs, ignoring current marketconditions.
B. It depends on the holder’s intention to sell or retain the asset or liability.
C. It faces issues like increased costs, delays, and doubts about the accuracy and reliability of available information.
D. It uses a single approach for valuation, limiting its flexibility.

Q.8. Which of the following is incorrect:
a. AS 2 : Valuation of inventories
b. AS 3: Revenue recognition
c. AS 17 : Segment reporting
d. AS 10 : Property, Plant & equipments

Q.9 Which of the following is incorrect:
a. AS 9 : Lease
b. AS 20: Earning per share
c. AS 21 : Consolidated Financial statement
d. AS 28 : Provisions, contingent liabilities, contingent assets

Q.10. Which of the following is a primary objective of Generally Accepted Accounting Principles (US GAAP)?
A. To guarantee that financial statements are free from errors or omissions.
B. To bring transparency and consistency in financial reporting across organizations.
C. To regulate the accounting standards set by the government.
D. To mandate the use of international financial reporting standards (IFRS) in the U.S