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🏦 JAIIB AFM Preparation of Final Accounts 18 cards
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AFM Capsule Cards PRO Preparation of Final Acco…
If a business pays rent in advance for the next accounting year, how is it treated?
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Prepaid Expenses
Preparation of Final Accounts 41
WA 41
AFM Capsule Cards PRO Preparation of Final Acco…
What is the standard formula to calculate the Cost of Goods Sold (COGS) during the year?
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Cost of Goods Sold Formula
Preparation of Final Accounts 41
WA 41
AFM Capsule Cards PRO Preparation of Final Acco…
Why are 'Adjusting Entries' absolutely necessary before preparing final financial statements?
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Adjusting Entries Purpose
Preparation of Final Accounts 39
WA 39
AFM Capsule Cards PRO Preparation of Final Acco…
Instead of directly reducing the fixed asset ledger account, where is depreciation often credited?
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Accumulated Depreciation
Preparation of Final Accounts 39
WA 39
AFM Capsule Cards PRO Preparation of Final Acco…
Why is there normally no entry in the 'Stock Account' in the ledger throughout the financial year?
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Closing Stock Accounting
Preparation of Final Accounts 39
WA 39
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AFM Capsule Cards PRO Preparation of Final Acco…
How do you pass an adjusting entry for an expense (like salary) incurred but not yet paid?
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Outstanding Expenses
Preparation of Final Accounts 37
WA 37
AFM Capsule Cards PRO Preparation of Final Acco…
What is the adjusting entry for income (like FD interest) that has accrued but not yet been received?
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Accrued Income
Preparation of Final Accounts 36
WA 36
AFM Capsule Cards PRO Preparation of Final Acco…
How must a business treat rent received in advance from a tenant before the period expires?
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Unearned (Advance) Income
Preparation of Final Accounts 36
WA 36
AFM Capsule Cards PRO Preparation of Final Acco…
Under Indian Accounting Standard (Ind AS 2), which methods are permitted for the valuation of inventory?
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Permitted Inventory Methods
Preparation of Final Accounts 36
WA 36
AFM Capsule Cards PRO Preparation of Final Acco…
Why do many accountants prepare a Trading Account before the Profit & Loss Account?
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Trading Account Purpose
Preparation of Final Accounts 36
WA 36
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AFM Capsule Cards PRO Preparation of Final Acco…
Is depreciation considered a cash expense when preparing the Profit and Loss account?
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Nature of Depreciation
Preparation of Final Accounts 35
WA 35
AFM Capsule Cards PRO Preparation of Final Acco…
What fundamental accounting assumption does Indian Accounting Standard (Ind AS-1) mandate for financial statements?
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Accrual Assumption (Ind AS-1)
Preparation of Final Accounts 34
WA 34
AFM Capsule Cards PRO Preparation of Final Acco…
What happens to income and expense accounts at the absolute end of the accounting period?
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Closing Entries
Preparation of Final Accounts 31
WA 31
AFM Capsule Cards PRO Preparation of Final Acco…
What is the fundamental difference between the Profit & Loss Account and the P&L Appropriation Account?
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P&L Appropriation Account
Preparation of Final Accounts 30
WA 30
AFM Capsule Cards PRO Preparation of Final Acco…
Is an adjusting entry the result of a new financial transaction with a third party?
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Adjusting Entry Rule
Preparation of Final Accounts 32
WA 32
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In inventory valuation, what is the core assumption of the FIFO (First In, First Out) method?
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FIFO Method Concept
Preparation of Final Accounts 29
WA 29
AFM Capsule Cards PRO Preparation of Final Acco…
After transferring nominal accounts to the P&L, what happens to Personal and Real accounts in the General Ledger?
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Treatment of Ledger Accounts
Preparation of Final Accounts 29
WA 29
AFM Capsule Cards PRO Preparation of Final Acco…
Why is the Trial Balance, by itself, not considered a financial statement?
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Trial Balance to Final Accounts
Preparation of Final Accounts 29
WA 29
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Preparation of Final Accounts — JAIIB AFM Capsules

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All 18 cards on this page
Prepaid Expenses If a business pays rent in advance for the next accounting year, how is it treated? Cost of Goods Sold Formula What is the standard formula to calculate the Cost of Goods Sold (COGS) during the year? Adjusting Entries Purpose Why are 'Adjusting Entries' absolutely necessary before preparing final financial statements? Accumulated Depreciation Instead of directly reducing the fixed asset ledger account, where is depreciation often credited? Closing Stock Accounting Why is there normally no entry in the 'Stock Account' in the ledger throughout the financial year? Outstanding Expenses How do you pass an adjusting entry for an expense (like salary) incurred but not yet paid? Accrued Income What is the adjusting entry for income (like FD interest) that has accrued but not yet been received? Unearned (Advance) Income How must a business treat rent received in advance from a tenant before the period expires? Permitted Inventory Methods Under Indian Accounting Standard (Ind AS 2), which methods are permitted for the valuation of inventory? Trading Account Purpose Why do many accountants prepare a Trading Account before the Profit & Loss Account? Nature of Depreciation Is depreciation considered a cash expense when preparing the Profit and Loss account? Accrual Assumption (Ind AS-1) What fundamental accounting assumption does Indian Accounting Standard (Ind AS-1) mandate for financial… Closing Entries What happens to income and expense accounts at the absolute end of the accounting period? P&L Appropriation Account What is the fundamental difference between the Profit & Loss Account and the P&L Appropriation Account? Adjusting Entry Rule Is an adjusting entry the result of a new financial transaction with a third party? FIFO Method Concept In inventory valuation, what is the core assumption of the FIFO (First In, First Out) method? Treatment of Ledger Accounts After transferring nominal accounts to the P&L, what happens to Personal and Real accounts in the Genera… Trial Balance to Final Accounts Why is the Trial Balance, by itself, not considered a financial statement?
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
Study formats
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