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AFM Capsule Cards PRO Budgets and Budgetary Con…
When an organization runs a specific safety drive or a middle-management training course, what type of budget is used?
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130 Views
Programme Budgeting
Budgets and Budgetary Control 130
WA 130
AFM Capsule Cards PRO Budgets and Budgetary Con…
In the context of implementing budgetary control, what constitutes a 'Budget Centre'?
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128 Views
Budget Centre
Budgets and Budgetary Control 128
WA 128
AFM Capsule Cards FREE Definition, Scope & A…
What is the most widely accepted definition of Accounting given by the American Institute of Certified Public Accountants (AICPA)?
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It is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions of a financial character.
Continuation:
Accountancy is a wider concept that includes bookkeeping. Bookkeeping is just recording in books of original entry and ledgers.
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126 Views
Definition of Accounting (AICPA)
Definition, Scope & Accounting Standards including Ind AS 126
WA 126
AFM Capsule Cards PRO Budgets and Budgetary Con…
How does a financial budget conceptually differ from a simple financial forecast?
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123 Views
Budget vs Forecast
Budgets and Budgetary Control 123
WA 123
AFM Capsule Cards PRO Budgets and Budgetary Con…
What is the purpose of the 'Budget Manual' distributed within a company?
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Budget Manual
Budgets and Budgetary Control 122
WA 122
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AFM Capsule Cards PRO Budgets and Budgetary Con…
What is the composition and primary role of the Budget Committee in a large firm?
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120 Views
Budget Committee
Budgets and Budgetary Control 120
WA 120
AFM Capsule Cards FREE Definition, Scope & A…
What is the fundamental difference in the regulatory approach between US GAAP and IFRS?
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US GAAP is considered a rules-based system of accounting, whereas IFRS is designed as a more principles-based system.
Continuation:
IFRS allows the revaluation model for fixed assets, whereas US GAAP strictly uses the historical cost model less accumulated depreciation.
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120 Views
US GAAP vs IFRS (Rules vs Principles)
Definition, Scope & Accounting Standards including Ind AS 120
WA 120
AFM Capsule Cards PRO Budgets and Budgetary Con…
Which functional budget predicts detailed estimates of cash inflows (receipts) and cash outflows (payments) periodically?
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113 Views
Cash Budget Component
Budgets and Budgetary Control 113
WA 113
AFM Capsule Cards FREE Definition, Scope & A…
In India, which body was constituted to harmonise diverse accounting policies and practices, and in which year was it established?
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The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on 21st April, 1977.
Continuation:
The main function of ASB is to formulate accounting standards so that the council of ICAI may mandate them.
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101 Views
Accounting Standards Board (ASB)
Definition, Scope & Accounting Standards including Ind AS 101
WA 101
AFM Capsule Cards PRO Budgets and Budgetary Con…
What is the ultimate goal of implementing a Performance Budgeting system in a Government agency or bank?
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Performance Budgeting Goal
Budgets and Budgetary Control 99
WA 99
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AFM Capsule Cards PRO Budgets and Budgetary Con…
Despite its advantages, why might a budgetary control system fail during unprecedented turmoil like the Covid pandemic?
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93 Views
Limitations of Budgeting
Budgets and Budgetary Control 93
WA 93
AFM Capsule Cards PRO Budgets and Budgetary Con…
How does Zero Base Budgeting (ZBB) radically differ from traditional incremental budgeting?
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90 Views
Zero Base Budgeting (ZBB)
Budgets and Budgetary Control 90
WA 90
AFM Capsule Cards FREE Definition, Scope & A…
What are the legal implications under the Companies Act 2013 if a company's financial statements do not comply with mandatory Accounting Standards?
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Section 129(5) requires disclosure of the deviation, reasons, and financial effects. Section 134(5) casts responsibility on the Board of Directors.
Continuation:
Auditors must qualify their reports if mandatory standards are not followed, failing which they are guilty of professional misconduct.
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83 Views
Mandatory AS Compliance & Law
Definition, Scope & Accounting Standards including Ind AS 83
WA 83
AFM Capsule Cards PRO Costing Methods
When assembling an aircraft or a motor vehicle, why is a 'Multiple/Composite Costing' method required?
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Multiple or Composite Costing
Costing Methods 81
WA 81
AFM Capsule Cards FREE Definition, Scope & A…
What does Accounting Standard 1 (AS 1) mandate regarding the preparation of financial statements and fundamental accounting assumptions?
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It requires disclosure of all significant accounting policies. If Going Concern, Consistency, and Accrual are followed, specific disclosure is not needed.
Continuation:
If any fundamental assumption is NOT followed, it must be explicitly disclosed to facilitate a meaningful comparison between enterprises.
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75 Views
AS 1: Disclosure of Accounting Policies
Definition, Scope & Accounting Standards including Ind AS 75
WA 75
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AFM Capsule Cards FREE Definition, Scope & A…
According to AS 2, how should inventories be valued in the financial statements, and which cost formulas are permitted?
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Inventories must be valued at the lower of cost or net realisable value. FIFO and Weighted Average Cost methods are permitted.
Continuation:
AS 2 does not apply to work in progress under construction contracts, service providers, or shares/debentures held as stock-in-trade.
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65 Views
AS 2: Valuation of Inventories
Definition, Scope & Accounting Standards including Ind AS 65
WA 65
AFM Capsule Cards FREE Definition, Scope & A…
How does AS 3 classify cash flows, and what qualifies as a cash equivalent?
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Cash flows are classified into Operating, Investing, and Financing activities. Cash equivalents are short-term, highly liquid investments.
Continuation:
Cash flow statements can be prepared using either the Direct or Indirect method. Cash includes cash in hand and demand deposits with banks.
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AS 3: Cash Flow Statements
Definition, Scope & Accounting Standards including Ind AS 65
WA 65
AFM Capsule Cards FREE Definition, Scope & A…
Under AS 16, what is the accounting treatment for borrowing costs directly attributable to the acquisition or construction of a qualifying asset?
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Such borrowing costs should be capitalised as part of the cost of the asset. Other borrowing costs are recognized as an expense.
Continuation:
A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.
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61 Views
AS 16: Borrowing Costs
Definition, Scope & Accounting Standards including Ind AS 61
WA 61
AFM Capsule Cards FREE Definition, Scope & A…
What does IFRS stand for, and what is its primary purpose in global accounting?
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International Financial Reporting Standards. They serve as a common global language for business affairs, making accounts comparable across borders.
Continuation:
IFRS replaced the older International Accounting Standards (IAS). The IASB (International Accounting Standards Board) is the independent body that sets IFRS.
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55 Views
Overview of IFRS
Definition, Scope & Accounting Standards including Ind AS 55
WA 55
AFM Capsule Cards PRO Trial Balance, Rectificat…
If a Trial Balance does not tally after various checks, where is the difference temporarily transferred?
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54 Views
Suspense Account Concept
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 54
WA 54
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AFM Capsule Cards FREE Definition, Scope & A…
How are Ind AS related to IFRS, and what makes them different from exact IFRS guidelines?
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Ind AS are the converged form of IFRS in India. They contain certain additions and deletions (carve-outs) to suit the Indian economic/legal environment.
Continuation:
The MCA notifies Ind AS based on ICAI's recommendation to the NFRA. Scheduled commercial banks must apply Ind AS per RBI guidelines.
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54 Views
Indian Accounting Standards (Ind AS)
Definition, Scope & Accounting Standards including Ind AS 54
WA 54
AFM Capsule Cards PRO Depreciation and its Acco…
What is the formula to calculate the annual depreciation amount under the Straight Line Method?
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53 Views
Formula for Straight Line Method
Depreciation and its Accounting 53
WA 53
AFM Capsule Cards PRO Bank Reconciliation State…
If the debit side (receipts) of the bank column in the Cash Book is undercast (totaled less), how does it affect BRS?
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52 Views
Errors in Cash Book (Undercasting)
Bank Reconciliation Statement 52
WA 52
AFM Capsule Cards PRO Depreciation and its Acco…
What is the primary financial disadvantage of using the Straight Line Method over the life of an asset?
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52 Views
Disadvantage of Straight Line Method
Depreciation and its Accounting 52
WA 52
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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52 Views
Matching Concept
Basic Accountancy Procedures 52
WA 52
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AFM Capsule Cards PRO Bank Reconciliation State…
What is the effect of 'cheques paid into the bank but not yet collected/cleared' on the respective books?
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52 Views
Cheques Deposited but Not Cleared
Bank Reconciliation Statement 52
WA 52
AFM Capsule Cards PRO Operational Aspects of Ac…
In core banking systems, how do 'pointing' accounts differ from 'non-pointing' accounts during reconciliation?
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51 Views
Pointing vs Non-Pointing Accounts
Operational Aspects of Accounting Entries 51
WA 51
AFM Capsule Cards PRO Basic Accountancy Procedu…
What is the fundamental difference between the Accrual Basis and Cash Basis of accounting?
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51 Views
Accrual vs Cash Basis
Basic Accountancy Procedures 51
WA 51
AFM Capsule Cards PRO Bank Reconciliation State…
If the bank mistakenly credits another customer's deposit to your account, what BRS adjustment is needed?
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50 Views
Errors by the Bank
Bank Reconciliation Statement 50
WA 50
AFM Capsule Cards PRO Bills of Exchange
Who are the three primary parties involved in a Bill of Exchange?
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50 Views
Parties to a Bill of Exchange
Bills of Exchange 50
WA 50
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AFM Capsule Cards PRO Maintenance of Cash/Subsi…
What are subsidiary books in accounting and why are they maintained instead of a single principal journal?
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50 Views
Subsidiary Books (Special Journals)
Maintenance of Cash/Subsidiary Books and Ledger 50
WA 50
AFM Capsule Cards PRO Maintenance of Cash/Subsi…
How does the Imprest System of petty cash work in day-to-day business operations?
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50 Views
Petty Cash Book & Imprest System
Maintenance of Cash/Subsidiary Books and Ledger 50
WA 50
AFM Capsule Cards PRO Bank Audit & Inspecti…
How has the primary objective of a bank audit shifted from its historical roots to modern times?
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49 Views
Primary Objective of Audit
Bank Audit & Inspection 49
WA 49
AFM Capsule Cards PRO Balance Sheet Equation
What is the net effect on total claims when a creditor's loan is converted into equity shares?
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49 Views
Conversion of Loan to Equity
Balance Sheet Equation 49
WA 49
AFM Capsule Cards PRO Company Accounts - I
What is the maximum number of members permitted in a Private Limited Company as per the Companies Act 2013?
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Private Company Limits
Company Accounts - I 49
WA 49
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AFM Capsule Cards PRO Company Accounts - II
When is an asset strictly classified as a 'Current Asset'?
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49 Views
Current Assets Classification
Company Accounts - II 49
WA 49
AFM Capsule Cards PRO Depreciation and its Acco…
How does the Institute of Chartered Accountants of England and Wales (ICAEW) define depreciation?
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49 Views
Meaning of Depreciation
Depreciation and its Accounting 49
WA 49
AFM Capsule Cards FREE Definition, Scope & A…
In the context of Transfer Pricing, what is the Arm's Length Price and why is it important for tax laws?
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It is the price at which two unrelated and non-desperate parties would agree to a transaction.
Continuation:
It prevents multinational groups from arbitrarily shifting profits to low-tax countries. Methods include Comparable Uncontrolled Price, Cost Plus, etc.
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49 Views
Arm's Length Price
Definition, Scope & Accounting Standards including Ind AS 49
WA 49
AFM Capsule Cards PRO Standard Costing
Standard cost is the estimated cost of production under anticipated conditions. Why is it essential to periodically update these standard costs?
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48 Views
Standard Costing Concept
Standard Costing 48
WA 48
AFM Capsule Cards PRO Bank Audit & Inspecti…
What is the primary aim of a Revenue Audit (or Income & Expenditure audit) in a bank?
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48 Views
Revenue Audit
Bank Audit & Inspection 48
WA 48
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AFM Capsule Cards PRO Bank Reconciliation State…
What is the 'Adjusted Cash Book' method of preparing a Bank Reconciliation Statement?
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48 Views
Adjusted Cash Book Method
Bank Reconciliation Statement 48
WA 48
AFM Capsule Cards PRO Depreciation and its Acco…
What is the defining characteristic of the Straight Line Method (SLM) of depreciation?
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48 Views
Straight Line Method (SLM)
Depreciation and its Accounting 48
WA 48
AFM Capsule Cards PRO Capital and Revenue Expen…
How does the Materiality Concept affect the classification of capital expenditure?
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48 Views
Materiality Concept in Expenditure
Capital and Revenue Expenditure 48
WA 48
AFM Capsule Cards PRO Maintenance of Cash/Subsi…
Why is the Ledger referred to as the 'Principal Book' or 'Book of Final Entry'?
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48 Views
The Ledger - Principal Book
Maintenance of Cash/Subsidiary Books and Ledger 48
WA 48
AFM Capsule Cards PRO Marginal Costing
Why might a company agree to export goods at a price significantly lower than its domestic selling price?
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47 Views
Export Pricing Strategy
Marginal Costing 47
WA 47
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AFM Capsule Cards PRO Cash Flow and Funds Flow
What is the primary difference in the focus of a Cash Flow Statement versus a Funds Flow Statement?
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47 Views
Cash Flow vs Funds Flow
Cash Flow and Funds Flow 47
WA 47
AFM Capsule Cards PRO Financial Management - An…
In large companies, there is often a diverse relationship between ownership and management. What defines the 'Agency Problem' in the context of corporate financial management and business operations?
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Agency Problem in Finance
Financial Management - An Overview 47
WA 47
AFM Capsule Cards PRO Ratio Analysis
Profitability is the ultimate measure of a firm's success. How is the Overall Profitability Ratio, also widely known as the Return on Investment (ROI), calculated by financial analysts?
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Return on Investment (ROI)
Ratio Analysis 47
WA 47
AFM Capsule Cards PRO Operational Aspects of Ac…
In an inter-branch transaction (e.g., Draft issued), what are the Originating and Responding entries?
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Originating vs Responding Entries
Operational Aspects of Accounting Entries 47
WA 47
AFM Capsule Cards PRO Depreciation and its Acco…
When is the Units of Production Method the most suitable choice for calculating depreciation?
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Units of Production Method
Depreciation and its Accounting 47
WA 47
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AFM Capsule Cards PRO Maintenance of Cash/Subsi…
What is the primary function of the Sales Day Book in the accounting cycle?
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Sales Day Book
Maintenance of Cash/Subsidiary Books and Ledger 47
WA 47
AFM Capsule Cards PRO Goods & Services Tax
Under Section 12 and 13 of the GST Act, when exactly does the liability to pay GST arise for a transaction?
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46 Views
Time of Supply Liability
Goods & Services Tax 46
WA 46
AFM Capsule Cards PRO Ratio Analysis
The mix of outsider funds versus owner funds is critical for assessing long-term solvency. What is the ideal benchmark for the Debt-Equity Ratio, and what exactly does it measure for a business?
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Debt-Equity Ratio
Ratio Analysis 46
WA 46
AFM Capsule Cards PRO Bank Reconciliation State…
When starting a BRS with the Pass Book favorable balance, how do the adjustment rules change?
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Starting with Pass Book Balance
Bank Reconciliation Statement 46
WA 46
AFM Capsule Cards PRO Depreciation and its Acco…
What are the three basic factors required for calculating the depreciation of an asset?
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46 Views
Factors of Depreciation
Depreciation and its Accounting 46
WA 46
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AFM Capsule Cards PRO Depreciation and its Acco…
What are the two alternative journal entry methods for recording depreciation in the books?
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46 Views
Accounting Entries for Depreciation
Depreciation and its Accounting 46
WA 46
AFM Capsule Cards PRO Depreciation and its Acco…
How does the Diminishing Balance or Written Down Value (WDV) method calculate annual depreciation?
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Written Down Value (WDV) Method
Depreciation and its Accounting 46
WA 46
AFM Capsule Cards PRO Capital and Revenue Expen…
What is the difference in the 'purpose' between capital and revenue expenditure?
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Purpose of Expenditure
Capital and Revenue Expenditure 46
WA 46
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 46
WA 46
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 46
WA 46
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AFM Capsule Cards PRO Basic Accountancy Procedu…
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 46
WA 46
AFM Capsule Cards PRO Derivatives
Options provide flexibility that futures do not. What specific rights do a 'Call Option' and a 'Put Option' grant to the buyer?
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Call Option vs Put Option
Derivatives 45
WA 45
AFM Capsule Cards PRO Goods & Services Tax
In the digitized banking scenario, how is the 'place of supply' determined for account-linked financial services?
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Place of Supply: Account Linked
Goods & Services Tax 45
WA 45
AFM Capsule Cards PRO Financial Mathematics - C…
When pricing a bond, you need the current value of all future coupon payments. What does the Present Value (PV) of an ordinary annuity calculate?
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45 Views
Present Value of Ordinary Annuity
Financial Mathematics - Calculation of Interest and Annuities 45
WA 45
AFM Capsule Cards PRO Bank Audit & Inspecti…
What is the main objective of an Information Systems (IS) Audit in a highly computerized banking environment?
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Information Systems (IS) Audit
Bank Audit & Inspection 45
WA 45
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AFM Capsule Cards PRO Balance Sheet Equation
Why is the capital contributed by an owner considered a liability for the business?
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Separate Entity Concept
Balance Sheet Equation 45
WA 45
AFM Capsule Cards PRO Operational Aspects of Ac…
Why is it critical for banks to update customer ledgers immediately, unlike other business enterprises?
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Importance of Real-Time Updating
Operational Aspects of Accounting Entries 45
WA 45
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are two-sided errors in the context of trial balance preparation?
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Two-Sided Errors
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 45
WA 45
AFM Capsule Cards PRO Bills of Exchange
According to Section 5 of the Negotiable Instruments Act, what is a Bill of Exchange?
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Bill of Exchange (Sec 5)
Bills of Exchange 45
WA 45
AFM Capsule Cards PRO Maintenance of Cash/Subsi…
Which specific types of transactions are recorded in the Purchase Day Book (or Purchase Journal)?
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Purchase Day Book
Maintenance of Cash/Subsidiary Books and Ledger 45
WA 45
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AFM Capsule Cards PRO Taxation: Income Tax/TDS/…
What are the crucial provisions regarding TCS implemented under GST for online platforms effective from 1st October 2018?
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TCS under GST
Taxation: Income Tax/TDS/Deferred Tax 44
WA 44
AFM Capsule Cards PRO Goods & Services Tax
What is the core mechanism in GST that prevents the cascading effect of taxes across the supply chain?
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Input Tax Credit (ITC) Concept
Goods & Services Tax 44
WA 44
AFM Capsule Cards PRO An Overview of Cost &…
How do fixed, variable, and semi-variable costs behave in relation to changes in the volume of production?
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Fixed vs Variable Costs
An Overview of Cost & Management Accounting 44
WA 44
AFM Capsule Cards PRO Financial Mathematics - C…
Maturity isn't the best measure of a bond's timeline. What does 'Macaulay Duration' measure for a bond investor?
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Macaulay Duration Concept
Financial Mathematics - Calculation of YTM 44
WA 44
AFM Capsule Cards PRO Final Accounts of Banking…
Which specific section of the Banking Regulation Act, 1949 deals with the preparation of financial statements?
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Banking Regulation Act Applicability
Final Accounts of Banking Companies 44
WA 44
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AFM Capsule Cards PRO Ratio Analysis
Financial statements suffer from several limitations, which inevitably impact the ratios derived from them. What does the term 'Window Dressing' mean in the context of limitations of accounting ratios?
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Limitation: Window Dressing
Ratio Analysis 44
WA 44
AFM Capsule Cards PRO Trial Balance, Rectificat…
When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly?
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44 Views
Rectification When Books are Closed
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 44
WA 44
AFM Capsule Cards PRO Depreciation and its Acco…
According to Accounting Standards in India (AS-10 and Ind AS-16), which three methods of calculating depreciation are officially recognised?
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Recognised Methods in India
Depreciation and its Accounting 44
WA 44
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 44
WA 44
AFM Capsule Cards PRO Bank Reconciliation State…
How does a 'cheque issued but not presented for payment' affect the Cash Book and Pass Book balances?
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Cheques Issued but Not Presented
Bank Reconciliation Statement 44
WA 44
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JAIIB AFM Capsule Cards 2026

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Programme Budgeting When an organization runs a specific safety drive or a middle-management training course, what type of b… Budget Centre In the context of implementing budgetary control, what constitutes a 'Budget Centre'? Definition of Accounting (AICPA) What is the most widely accepted definition of Accounting given by the American Institute of Certified P… Budget vs Forecast How does a financial budget conceptually differ from a simple financial forecast? Budget Manual What is the purpose of the 'Budget Manual' distributed within a company? Budget Committee What is the composition and primary role of the Budget Committee in a large firm? US GAAP vs IFRS (Rules vs Principles) What is the fundamental difference in the regulatory approach between US GAAP and IFRS? Cash Budget Component Which functional budget predicts detailed estimates of cash inflows (receipts) and cash outflows (paymen… Accounting Standards Board (ASB) In India, which body was constituted to harmonise diverse accounting policies and practices, and in whic… Performance Budgeting Goal What is the ultimate goal of implementing a Performance Budgeting system in a Government agency or bank? Limitations of Budgeting Despite its advantages, why might a budgetary control system fail during unprecedented turmoil like the… Zero Base Budgeting (ZBB) How does Zero Base Budgeting (ZBB) radically differ from traditional incremental budgeting? Mandatory AS Compliance & Law What are the legal implications under the Companies Act 2013 if a company's financial statements do not… Multiple or Composite Costing When assembling an aircraft or a motor vehicle, why is a 'Multiple/Composite Costing' method required? AS 1: Disclosure of Accounting Policies What does Accounting Standard 1 (AS 1) mandate regarding the preparation of financial statements and fun… AS 2: Valuation of Inventories According to AS 2, how should inventories be valued in the financial statements, and which cost formulas… AS 3: Cash Flow Statements How does AS 3 classify cash flows, and what qualifies as a cash equivalent? AS 16: Borrowing Costs Under AS 16, what is the accounting treatment for borrowing costs directly attributable to the acquisiti… Overview of IFRS What does IFRS stand for, and what is its primary purpose in global accounting? Suspense Account Concept If a Trial Balance does not tally after various checks, where is the difference temporarily transferred? Indian Accounting Standards (Ind AS) How are Ind AS related to IFRS, and what makes them different from exact IFRS guidelines? Formula for Straight Line Method What is the formula to calculate the annual depreciation amount under the Straight Line Method? Errors in Cash Book (Undercasting) If the debit side (receipts) of the bank column in the Cash Book is undercast (totaled less), how does i… Disadvantage of Straight Line Method What is the primary financial disadvantage of using the Straight Line Method over the life of an asset? Matching Concept How does the Matching Concept determine the true profit or loss of a business for a specific accounting… Cheques Deposited but Not Cleared What is the effect of 'cheques paid into the bank but not yet collected/cleared' on the respective books? Pointing vs Non-Pointing Accounts In core banking systems, how do 'pointing' accounts differ from 'non-pointing' accounts during reconcili… Accrual vs Cash Basis What is the fundamental difference between the Accrual Basis and Cash Basis of accounting? Errors by the Bank If the bank mistakenly credits another customer's deposit to your account, what BRS adjustment is needed? Parties to a Bill of Exchange Who are the three primary parties involved in a Bill of Exchange? Subsidiary Books (Special Journals) What are subsidiary books in accounting and why are they maintained instead of a single principal journa… Petty Cash Book & Imprest System How does the Imprest System of petty cash work in day-to-day business operations? Primary Objective of Audit How has the primary objective of a bank audit shifted from its historical roots to modern times? Conversion of Loan to Equity What is the net effect on total claims when a creditor's loan is converted into equity shares? Private Company Limits What is the maximum number of members permitted in a Private Limited Company as per the Companies Act 20… Current Assets Classification When is an asset strictly classified as a 'Current Asset'? Meaning of Depreciation How does the Institute of Chartered Accountants of England and Wales (ICAEW) define depreciation? Arm's Length Price In the context of Transfer Pricing, what is the Arm's Length Price and why is it important for tax laws? Standard Costing Concept Standard cost is the estimated cost of production under anticipated conditions. Why is it essential to p… Revenue Audit What is the primary aim of a Revenue Audit (or Income & Expenditure audit) in a bank? Adjusted Cash Book Method What is the 'Adjusted Cash Book' method of preparing a Bank Reconciliation Statement? Straight Line Method (SLM) What is the defining characteristic of the Straight Line Method (SLM) of depreciation? Materiality Concept in Expenditure How does the Materiality Concept affect the classification of capital expenditure? The Ledger - Principal Book Why is the Ledger referred to as the 'Principal Book' or 'Book of Final Entry'? Export Pricing Strategy Why might a company agree to export goods at a price significantly lower than its domestic selling price? Cash Flow vs Funds Flow What is the primary difference in the focus of a Cash Flow Statement versus a Funds Flow Statement? Agency Problem in Finance In large companies, there is often a diverse relationship between ownership and management. What defines… Return on Investment (ROI) Profitability is the ultimate measure of a firm's success. How is the Overall Profitability Ratio, also… Originating vs Responding Entries In an inter-branch transaction (e.g., Draft issued), what are the Originating and Responding entries? Units of Production Method When is the Units of Production Method the most suitable choice for calculating depreciation? Sales Day Book What is the primary function of the Sales Day Book in the accounting cycle? Time of Supply Liability Under Section 12 and 13 of the GST Act, when exactly does the liability to pay GST arise for a transacti… Debt-Equity Ratio The mix of outsider funds versus owner funds is critical for assessing long-term solvency. What is the i… Starting with Pass Book Balance When starting a BRS with the Pass Book favorable balance, how do the adjustment rules change? Factors of Depreciation What are the three basic factors required for calculating the depreciation of an asset? Accounting Entries for Depreciation What are the two alternative journal entry methods for recording depreciation in the books? Written Down Value (WDV) Method How does the Diminishing Balance or Written Down Value (WDV) method calculate annual depreciation? Purpose of Expenditure What is the difference in the 'purpose' between capital and revenue expenditure? Business Entity Concept Why is capital contributed by the owner treated as a liability for the business in the balance sheet? Dual Aspect Concept & Equation Which accounting concept dictates that every transaction has two effects (debit and credit), and what is… Convention of Full Disclosure What is the primary requirement of the Convention of Full Disclosure when preparing financial statements? Call Option vs Put Option Options provide flexibility that futures do not. What specific rights do a 'Call Option' and a 'Put Opti… Place of Supply: Account Linked In the digitized banking scenario, how is the 'place of supply' determined for account-linked financial… Present Value of Ordinary Annuity When pricing a bond, you need the current value of all future coupon payments. What does the Present Val… Information Systems (IS) Audit What is the main objective of an Information Systems (IS) Audit in a highly computerized banking environ… Separate Entity Concept Why is the capital contributed by an owner considered a liability for the business? Importance of Real-Time Updating Why is it critical for banks to update customer ledgers immediately, unlike other business enterprises? Two-Sided Errors What are two-sided errors in the context of trial balance preparation? Bill of Exchange (Sec 5) According to Section 5 of the Negotiable Instruments Act, what is a Bill of Exchange? Purchase Day Book Which specific types of transactions are recorded in the Purchase Day Book (or Purchase Journal)? TCS under GST What are the crucial provisions regarding TCS implemented under GST for online platforms effective from… Input Tax Credit (ITC) Concept What is the core mechanism in GST that prevents the cascading effect of taxes across the supply chain? Fixed vs Variable Costs How do fixed, variable, and semi-variable costs behave in relation to changes in the volume of productio… Macaulay Duration Concept Maturity isn't the best measure of a bond's timeline. What does 'Macaulay Duration' measure for a bond i… Banking Regulation Act Applicability Which specific section of the Banking Regulation Act, 1949 deals with the preparation of financial state… Limitation: Window Dressing Financial statements suffer from several limitations, which inevitably impact the ratios derived from th… Rectification When Books are Closed When errors are rectified in the next accounting year, why can't Nominal Accounts be adjusted directly? Recognised Methods in India According to Accounting Standards in India (AS-10 and Ind AS-16), which three methods of calculating dep… Going Concern Concept What does the Going Concern concept assume about the lifespan of a business enterprise? Cheques Issued but Not Presented How does a 'cheque issued but not presented for payment' affect the Cash Book and Pass Book balances?
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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