JAIIB Exam 2025 – AFM Important Questions MCQs Quiz-3

07/02/2025

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JAIIB Exam 2025 AFM Important Questions MCQs Quiz-3

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 about a journal is true?
A) A journal records transactions in a random order.
B) A journal does not include any description of transactions.
C) A journal is a chronological record of all transactions, including debits, credits, and descriptions.
D) A journal directly provides the balance of a particular account without the need for a ledger.

Q.2. Which of the following statements about the cash book is true?
A) A cash book only records cash receipts, not payments.
B) A cash book is both a subsidiary book and a ledger account.
C) A cash book requires a separate cash account in the ledger.
D) A cash book follows only the single-entry system of accounting

Q 3 Which of the following best describes the sequence of the accounting cycle?
A) Classifying → Recording → Summarising
B) Summarising → Recording → Classifying
C) Recording → Classifying → Summarising
D) Recording → Summarising → Classifying

Q.4 Which of the following statements correctly differentiates between a journal and a ledger?
A) A journal is a book of analytical record, while a ledger is a book of chronological record.
B) Transactions are recorded first in the ledger and then posted to the journal.
C) The process of recording in a journal is called ‘posting,’ while in a ledger, it is called ‘journalising.’
D) A journal is the book of original entry, whereas a ledger is the book of second entry.

Q.5. Which of the following accounts is classified as a representative personal account?
A) Bank of India’s Account
B) Prepaid Salary Account
C) Mohan’s Account
D) Tata Steel Ltd.’s Account

Q.6 Which of the following correctly differentiates between artificial personal accounts and representative personal accounts?
A) Artificial personal accounts belong only to individuals, while representative personal accounts belong to companies.
B) Artificial personal accounts represent firms or institutions, while representative personal accounts represent outstanding or prepaid amounts related to individuals or groups.
C) Artificial personal accounts record cash transactions, while representative personal accounts record credit transactions.
D) Artificial personal accounts require no ledger entry, while representative personal accounts require journal entries only

Q.7 Which of the following is an example of an intangible real account?
A) Building Account
B) Furniture Account
C) Trademark Account
D) Cash Account

Q.8. Which statement correctly differentiates between tangible and intangible real accounts?
A) Tangible real accounts relate to physical assets, while intangible real accounts relate to financial transactions only.
B) Tangible real accounts represent assets that can be physically seen or touched, while intangible real accounts represent assets that cannot be physically touched but have monetary value.
C) Tangible real accounts are recorded in journals, while intangible real accounts are not recorded in books of accounts.
D) Tangible real accounts are always depreciated, while intangible real accounts are never amortized.

Q.9 Which of the following accounts is classified as a nominal account?
A) Machinery Account
B) Rent Paid Account
C) Bank Account
D) Debtor’s Account

Q.10 Which statement correctly defines nominal accounts?
A) Nominal accounts represent actual physical assets owned by the business.
B) Nominal accounts are used to record expenses, losses, incomes, and gains.
C) Nominal accounts record transactions with persons and organizations.
D) Nominal accounts are never closed at the end of the accounting period

Q.11. Which of the following correctly represents the debit rule for personal accounts?
A) Debit the Giver
B) Debit What Comes In
C) Debit Expenses or Losses
D) Debit the Receiver

Q.12. Which of the following correctly matches the type of account with its credit rule?
A) Real Account – Credit the Receiver
B) Nominal Account – Credit Expenses or Losses
C) Personal Account – Credit the Giver
D) Real Account – Credit What Comes In

Q.13 In a two-column cash book, what is recorded in the discount column on the debit side?
A) Discount received
B) Discount allowed
C) Cash payments
D) Bank deposits

Q.14 In a cash book, what is indicated by the letter ‘C’ in the L.F. column?
A) Credit entry in cash transactions
B) Contra entry involving both cash and bank accounts
C) Credit entry in bank transactions
D) Closing balance of the cash book

Q.15 What is the primary purpose of maintaining a petty cash book in a business?
A) To record all cash transactions including large payments
B) To record only the payments for fixed assets
C) To record small or petty expenses like conveyance and cartage
D) To track the business’s bank balance

Q.16 Which of the following best describes the Imprest Amount in the Imprest System of Petty Cash?
A) The total amount spent by the petty cashier during the period
B) The amount given as advance to the petty cashier to cover expected expenses
C) The amount left in the petty cash book after expenses are recorded
D) The amount reimbursed to the petty cashier for personal expenses