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AFM Capsule Cards PRO Basic Accountancy Procedu…
How does the Matching Concept determine the true profit or loss of a business for a specific accounting period?
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Matching Concept
Basic Accountancy Procedures 37
WA 37
AFM Capsule Cards PRO Basic Accountancy Procedu…
Which accounting concept dictates that every transaction has two effects (debit and credit), and what is the fundamental accounting equation?
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Dual Aspect Concept & Equation
Basic Accountancy Procedures 32
WA 32
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What is the fundamental difference between the Accrual Basis and Cash Basis of accounting?
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Accrual vs Cash Basis
Basic Accountancy Procedures 32
WA 32
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Anticipate no profit, but provide for all possible losses. Which accounting convention is defined by this rule?
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Convention of Conservatism (Prudence)
Basic Accountancy Procedures 31
WA 31
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What is the primary requirement of the Convention of Full Disclosure when preparing financial statements?
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Convention of Full Disclosure
Basic Accountancy Procedures 30
WA 30
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AFM Capsule Cards PRO Basic Accountancy Procedu…
What are the fundamental rules for debit and credit in the Double Entry System for Personal, Real, and Nominal accounts?
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Double Entry System
Basic Accountancy Procedures 30
WA 30
AFM Capsule Cards PRO Basic Accountancy Procedu…
Why is capital contributed by the owner treated as a liability for the business in the balance sheet?
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Business Entity Concept
Basic Accountancy Procedures 29
WA 29
AFM Capsule Cards PRO Basic Accountancy Procedu…
What does the Going Concern concept assume about the lifespan of a business enterprise?
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Going Concern Concept
Basic Accountancy Procedures 29
WA 29
AFM Capsule Cards FREE Basic Accountancy Procedu…
In basic accountancy procedures, how do 'Accounting Concepts' differ from 'Accounting Conventions'?
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Concepts are basic scientific rules for recording transactions. Conventions are customs and traditions accepted for preparing financial statements.
Continuation:
Concepts maintain continuity and comparability (e.g., Cost, Dual Aspect). Conventions guide the reporting phase (e.g., Conservatism, Materiality).
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Concepts vs Conventions
Basic Accountancy Procedures 28
WA 28
AFM Capsule Cards PRO Basic Accountancy Procedu…
According to the Cost Concept in accounting, how should fixed assets be recorded in the books of accounts?
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Cost Concept
Basic Accountancy Procedures 27
WA 27
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Why is the Convention of Consistency vital for users analyzing a company's financial statements over multiple years?
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Convention of Consistency
Basic Accountancy Procedures 27
WA 27
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What is the main limitation of the Money Measurement concept in evaluating a business's true health?
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Money Measurement Concept
Basic Accountancy Procedures 25
WA 25
AFM Capsule Cards PRO Basic Accountancy Procedu…
When a Trial Balance fails to tally, which temporary account is opened to artificially balance it until errors are located?
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Suspense Account in Errors
Basic Accountancy Procedures 21
WA 21
AFM Capsule Cards PRO Basic Accountancy Procedu…
How do you differentiate between Capital Expenditure and Revenue Expenditure based on earning capacity?
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Capital vs Revenue Expenditure
Basic Accountancy Procedures 19
WA 19
AFM Capsule Cards PRO Basic Accountancy Procedu…
How does the Convention of Materiality act as an exception to the Convention of Full Disclosure?
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Convention of Materiality
Basic Accountancy Procedures 21
WA 21
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In basic accountancy procedures, what is a Journal and what is its primary function?
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Books of Original Entry (Journals)
Basic Accountancy Procedures 20
WA 20
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What is a Ledger in accounting, and what is the process of transferring entries from the Journal to the Ledger called?
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Ledger (Principal Book)
Basic Accountancy Procedures 20
WA 20
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Why is the continuous life of a business divided into artificial time intervals (usually one year)?
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Accounting Period Concept
Basic Accountancy Procedures 19
WA 19
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Under the Realisation concept, at what specific point in time is revenue considered to be earned or realised?
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Realisation Concept
Basic Accountancy Procedures 19
WA 19
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Basic Accountancy Procedures — JAIIB AFM Capsules

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All 19 cards on this page
Matching Concept How does the Matching Concept determine the true profit or loss of a business for a specific accounting… Dual Aspect Concept & Equation Which accounting concept dictates that every transaction has two effects (debit and credit), and what is… Accrual vs Cash Basis What is the fundamental difference between the Accrual Basis and Cash Basis of accounting? Convention of Conservatism (Prudence) Anticipate no profit, but provide for all possible losses. Which accounting convention is defined by thi… Convention of Full Disclosure What is the primary requirement of the Convention of Full Disclosure when preparing financial statements? Double Entry System What are the fundamental rules for debit and credit in the Double Entry System for Personal, Real, and N… Business Entity Concept Why is capital contributed by the owner treated as a liability for the business in the balance sheet? Going Concern Concept What does the Going Concern concept assume about the lifespan of a business enterprise? Concepts vs Conventions In basic accountancy procedures, how do 'Accounting Concepts' differ from 'Accounting Conventions'? Cost Concept According to the Cost Concept in accounting, how should fixed assets be recorded in the books of account… Convention of Consistency Why is the Convention of Consistency vital for users analyzing a company's financial statements over mul… Money Measurement Concept What is the main limitation of the Money Measurement concept in evaluating a business's true health? Suspense Account in Errors When a Trial Balance fails to tally, which temporary account is opened to artificially balance it until… Capital vs Revenue Expenditure How do you differentiate between Capital Expenditure and Revenue Expenditure based on earning capacity? Convention of Materiality How does the Convention of Materiality act as an exception to the Convention of Full Disclosure? Books of Original Entry (Journals) In basic accountancy procedures, what is a Journal and what is its primary function? Ledger (Principal Book) What is a Ledger in accounting, and what is the process of transferring entries from the Journal to the… Accounting Period Concept Why is the continuous life of a business divided into artificial time intervals (usually one year)? Realisation Concept Under the Realisation concept, at what specific point in time is revenue considered to be earned or real…
Chapters in this paper
Definition, Scope & Accounting Standards including Ind AS Balance Sheet Equation Financial Management - An Overview Taxation: Income Tax/TDS/Deferred Tax Basic Accountancy Procedures Preparation of Final Accounts Ratio Analysis Goods & Services Tax Maintenance of Cash/Subsidiary Books and Ledger Company Accounts - I Financial Mathematics - Calculation of Interest and Annuities An Overview of Cost & Management Accounting Bank Reconciliation Statement Company Accounts - II Financial Mathematics - Calculation of YTM Costing Methods
Modules in AFM
MODULE A: Accounting Principles and Processes MODULE B: Financial Statements and Core Banking Systems MODULE C: Financial Management MODULE D: Taxation and Fundamentals of Costing
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
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