JAIIB Exam 2025 – AFM Important Questions MCQs Quiz-15

20/03/2025

Table of Contents

JAIIB Exam 2025 AFM Important Questions MCQs Quiz-15

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. According to the prescribed standards for rounding off figures in Financial Statements, which of the following statements is correct?
A) A company with a turnover of ₹90 crore may round off figures to the nearest lakh, million, or crore.
B) A company with a turnover of ₹150 crore may round off figures to the nearest hundred or thousand.
C) A company with a turnover of ₹75 crore may round off figures to the nearest thousand or lakh.
D) A company with a turnover of ₹100 crore or more must round off figures only to the nearest crore.

Q.2 As per the relevant provisions, the requirements applicable to a statement of profit and loss shall also apply to which of the following?
A) Balance Sheet as per clause (40) of section 2
B) Income and Expenditure Account referred to in subclause (ii) of clause (40) of section 2
C) Notes to Accounts under Schedule III
D) Cash Flow Statement as per section 2(40)

Q 3 As per disclosure norms in financial reporting, how should a finance company present its revenue from operations in the notes to accounts?
A) It should disclose revenue from the sale of products and excise duty separately.
B) It should include and disclose revenue from interest and other financial services separately.
C) It should include excise duty under other operating revenues.
D) It should combine all revenue sources into a single line item without separate disclosure

Q.4 Which of the following items is not classified under Finance Costs as per disclosure requirements?
A) Interest expense
B) Other borrowing costs
C) Applicable net gain/loss on foreign currency transactions and translation
D) Depreciation on fixed assets

Q.5 When preparing consolidated financial statements, which of the following disclosures is mandatory as per applicable Accounting Standards and Schedule requirements?
A) Minority interest should be shown as a liability in the consolidated balance sheet.
B) Profit or loss attributable to minority interest should be merged with retained earnings.
C) Profit or loss attributable to minority interest and to owners of the parent must be presented as allocation in the consolidated statement of profit and loss.
D) Minority interest need not be disclosed separately if it is below a materiality threshold

Q.6 According to Ind AS, in which of the following cases do reclassification adjustments NOT arise?
A) When revaluation surplus changes under Ind AS 16 or Ind AS 38 are recognized in other comprehensive income (OCI) and later transferred to retained earnings.
B) When gains or losses from available-for-sale financial assets are transferred from OCI to profit or loss on disposal.
C) When foreign currency translation differences are reclassified from OCI to profit or loss upon disposal of a foreign operation.
D) When actuarial gains or losses on defined benefit plans recognized under Ind AS 19 are transferred from OCI to profit or loss.

Q.7 Which of the following is NOT a required disclosure in the Statement of Changes in Equity as per Ind AS-1?
A) Total comprehensive income for the period, separately showing amounts attributable to owners of the parent and noncontrolling interests.
B) Retrospective application or restatement effects for each component of equity in accordance with Ind AS 8.
C) Reconciliation for each component of equity, including changes from profit or loss, other comprehensive income, and owner transactions.
D) Schedule of contingent liabilities and commitments related to equity investments.

Q.8 As per Ind AS-1 and Ind AS-7, which of the following statements is correct regarding the cash flow statement?
A) The cash flow statement is an optional disclosure and is not part of the set of financial statements under Ind AS-1.
B) The cash flow statement helps users evaluate the entity’s ability to generate cash and cash equivalents, and how it plans to utilize them.
C) Ind AS-7 prescribes that cash flows should only be classified into operating and investing activities.
D) The cash flow statement is only required for financial institutions under Ind AS.

Q.9 According to Para 38A and 38B of Ind AS-1, which of the following is correct regarding the presentation and disclosure requirements?
A) An entity must present, as a minimum, one set of each financial statement along with notes to accounts.
B) Narrative information from prior periods should never be included in current period financial statements.
C) An entity is required to present at least two balance sheets, two statements of profit and loss, two cash flow statements, two statements of changes in equity, and related notes.
D) Narrative disclosures from prior periods are relevant only when related to discontinued

Q.10 According to Para 40A of Ind AS-1, when is an entity required to present a third balance sheet at the beginning of the preceding period?
A) When it makes a voluntary disclosure of significant estimates affecting the financial statements.
B) When it applies an accounting policy retrospectively or makes a retrospective restatement or reclassification that has a material effect on the statement of financial position at the beginning of the preceding period.
C) When it changes its external auditor during the reporting period.
D) When it discloses narrative information related to prior year events

Q.11 As per Para 41 and 42 of Ind AS-1, if an entity reclassifies comparative amounts in its financial statements, which of the following is NOT required to be disclosed?
A) The reason for the reclassification.
B) The amount of each item or class of items reclassified.
C) The impact on future projected cash flows due to the reclassification.
D) The nature of the reclassification

Q.12 According to Ind AS-110, which of the following is the primary criterion for a parent to consolidate its subsidiaries?
A) The parent must own more than 20% of the voting power of the investee.
B) The parent must have significant influence over the investee’s financial and operating policies.
C) The parent must control one or more subsidiaries, with control being the basis for consolidation.
D) The parent and the investee must be located in the same jurisdiction.

Q.13 Which of the following disclosures is correctly matched with the relevant Ind AS as per the provided text?
A) Contingent liabilities – Ind AS 107
B) Financial risk management objectives and policies – Ind AS 37
C) Unrecognised contractual commitments – Ind AS 37
D) Non-financial disclosures related to financial risk management – Ind AS 10