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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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Programme Budgeting
Budgets and Budgetary Control 90
WA 90
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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Budget Committee
Budgets and Budgetary Control 89
WA 89
AFM Capsule Cards PRO Budgets and Budgetary Con…
In the context of implementing budgetary control, what constitutes a 'Budget Centre'?
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Budget Centre
Budgets and Budgetary Control 87
WA 87
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 86
WA 86
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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86 Views
Definition of Accounting (AICPA)
Definition, Scope & Accounting Standards including Ind AS 86
WA 86
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AFM Capsule Cards PRO Budgets and Budgetary Con…
How does a financial budget conceptually differ from a simple financial forecast?
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Budget vs Forecast
Budgets and Budgetary Control 83
WA 83
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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82 Views
US GAAP vs IFRS (Rules vs Principles)
Definition, Scope & Accounting Standards including Ind AS 82
WA 82
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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Cash Budget Component
Budgets and Budgetary Control 76
WA 76
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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67 Views
Accounting Standards Board (ASB)
Definition, Scope & Accounting Standards including Ind AS 67
WA 67
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 65
WA 65
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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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Limitations of Budgeting
Budgets and Budgetary Control 60
WA 60
AFM Capsule Cards PRO Budgets and Budgetary Con…
How does Zero Base Budgeting (ZBB) radically differ from traditional incremental budgeting?
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Zero Base Budgeting (ZBB)
Budgets and Budgetary Control 58
WA 58
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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58 Views
Mandatory AS Compliance & Law
Definition, Scope & Accounting Standards including Ind AS 58
WA 58
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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AS 1: Disclosure of Accounting Policies
Definition, Scope & Accounting Standards including Ind AS 54
WA 54
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 52
WA 52
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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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AS 2: Valuation of Inventories
Definition, Scope & Accounting Standards including Ind AS 48
WA 48
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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AS 16: Borrowing Costs
Definition, Scope & Accounting Standards including Ind AS 44
WA 44
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 43
WA 43
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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Overview of IFRS
Definition, Scope & Accounting Standards including Ind AS 40
WA 40
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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Indian Accounting Standards (Ind AS)
Definition, Scope & Accounting Standards including Ind AS 40
WA 40
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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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38 Views
Formula for Straight Line Method
Depreciation and its Accounting 38
WA 38
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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Revenue Audit
Bank Audit & Inspection 37
WA 37
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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37 Views
Meaning of Depreciation
Depreciation and its Accounting 37
WA 37
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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Disadvantage of Straight Line Method
Depreciation and its Accounting 37
WA 37
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
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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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36 Views
Primary Objective of Audit
Bank Audit & Inspection 36
WA 36
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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36 Views
Suspense Account Concept
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 36
WA 36
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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36 Views
Arm's Length Price
Definition, Scope & Accounting Standards including Ind AS 36
WA 36
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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Cheques Deposited but Not Cleared
Bank Reconciliation Statement 36
WA 36
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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Export Pricing Strategy
Marginal Costing 35
WA 35
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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 35
WA 35
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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Pointing vs Non-Pointing Accounts
Operational Aspects of Accounting Entries 35
WA 35
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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Errors in Cash Book (Undercasting)
Bank Reconciliation Statement 35
WA 35
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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34 Views
Standard Costing Concept
Standard Costing 34
WA 34
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 34
WA 34
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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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34 Views
Conversion of Loan to Equity
Balance Sheet Equation 34
WA 34
AFM Capsule Cards PRO Company Accounts - II
When is an asset strictly classified as a 'Current Asset'?
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Current Assets Classification
Company Accounts - II 34
WA 34
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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Errors by the Bank
Bank Reconciliation Statement 34
WA 34
AFM Capsule Cards PRO Bank Reconciliation State…
What is the 'Adjusted Cash Book' method of preparing a Bank Reconciliation Statement?
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Adjusted Cash Book Method
Bank Reconciliation Statement 34
WA 34
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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Straight Line Method (SLM)
Depreciation and its Accounting 34
WA 34
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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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33 Views
Debt-Equity Ratio
Ratio Analysis 33
WA 33
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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Subsidiary Books (Special Journals)
Maintenance of Cash/Subsidiary Books and Ledger 33
WA 33
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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33 Views
Petty Cash Book & Imprest System
Maintenance of Cash/Subsidiary Books and Ledger 33
WA 33
AFM Capsule Cards PRO Financial Mathematics - C…
YTM is the most comprehensive measure of bond return. What exactly does the Yield to Maturity (YTM) represent?
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32 Views
Yield to Maturity (YTM) Meaning
Financial Mathematics - Calculation of YTM 32
WA 32
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 32
WA 32
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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 32
WA 32
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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Factors of Depreciation
Depreciation and its Accounting 32
WA 32
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 32
WA 32
AFM Capsule Cards PRO Capital and Revenue Expen…
How does the Materiality Concept affect the classification of capital expenditure?
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Materiality Concept in Expenditure
Capital and Revenue Expenditure 32
WA 32
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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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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Accrual vs Cash Basis
Basic Accountancy Procedures 32
WA 32
AFM Capsule Cards PRO Ratio Analysis
The traditional classification of ratios is based on financial statements, which is often found to be too crude. Under the functional classification, into what main categories are financial ratios divided?
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Functional Classification of Ratios
Ratio Analysis 31
WA 31
AFM Capsule Cards PRO Bank Audit & Inspecti…
What does CAATs stand for, and how has it transformed the audit process in banks?
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CAATs in Auditing
Bank Audit & Inspection 31
WA 31
AFM Capsule Cards PRO Bank Audit & Inspecti…
When did the RBI introduce the Risk-Based Internal Audit (RBIA) system, and what is its core philosophy?
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Risk-Based Internal Audit (RBIA)
Bank Audit & Inspection 31
WA 31
AFM Capsule Cards PRO Bank Audit & Inspecti…
According to RBI guidelines on RBIA, who should the Head of Internal Audit (HIA) directly report to?
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Independence of Internal Audit
Bank Audit & Inspection 31
WA 31
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AFM Capsule Cards PRO Bank Audit & Inspecti…
What is the defining characteristic of a Concurrent Audit in a bank?
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Concurrent Audit Features
Bank Audit & Inspection 31
WA 31
AFM Capsule Cards PRO Bank Audit & Inspecti…
What are the primary focus areas for a Statutory Auditor during a bank branch audit?
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Statutory Audit Scope
Bank Audit & Inspection 31
WA 31
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 31
WA 31
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 31
WA 31
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 31
WA 31
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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 31
WA 31
AFM Capsule Cards PRO Trial Balance, Rectificat…
If the Suspense Account has a remaining balance at the time of preparing final accounts, where is it shown?
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Suspense Account in Balance Sheet
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 31
WA 31
AFM Capsule Cards PRO Trial Balance, Rectificat…
How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance?
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One-Sided Errors Before Trial Balance
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 31
WA 31
AFM Capsule Cards PRO Trial Balance, Rectificat…
Which account is opened to rectify errors found in Nominal Accounts after the final accounts of that year are closed?
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Profit and Loss Adjustment Account
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 31
WA 31
AFM Capsule Cards PRO Trial Balance, Rectificat…
What are 'Adjusting Entries' and why are they necessary before preparing final accounts?
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Adjusting Entries
Trial Balance, Rectification of Errors and Adjusting & Closing Entries 31
WA 31
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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 31
WA 31
AFM Capsule Cards PRO Bills of Exchange
Who are the three primary parties involved in a Bill of Exchange?
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Parties to a Bill of Exchange
Bills of Exchange 31
WA 31
AFM Capsule Cards PRO Basic Accountancy Procedu…
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
AFM Capsule Cards PRO Taxation: Income Tax/TDS/…
Who is responsible for deducting Tax Deducted at Source (TDS), and what mandatory registration must they obtain from the government?
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30 Views
TDS & TAN Essentials
Taxation: Income Tax/TDS/Deferred Tax 30
WA 30
AFM Capsule Cards PRO Taxation: Income Tax/TDS/…
Deferred tax arises due to timing differences between accounting income and taxable income. How are these classified on the balance sheet?
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Deferred Tax Asset vs Liability
Taxation: Income Tax/TDS/Deferred Tax 30
WA 30
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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 30
WA 30
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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Time of Supply Liability
Goods & Services Tax 30
WA 30
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 30
WA 30
AFM Capsule Cards PRO An Overview of Cost &…
What is the fundamental difference in the scope and statutory requirements between Financial Accounting and Cost Accounting?
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Financial vs Cost Accounting
An Overview of Cost & Management Accounting 30
WA 30
AFM Capsule Cards PRO An Overview of Cost &…
Which professional body in India is responsible for formulating and issuing Cost Accounting Standards (CAS)?
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Cost Accounting Standards (CAS)
An Overview of Cost & Management Accounting 30
WA 30
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AFM Capsule Cards PRO Capital Structure and Cos…
The Traditional Position offers a middle ground between the NI and NOI approaches. How does WACC behave according to this traditional view of leverage?
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Traditional Approach to Capital Structure
Capital Structure and Cost of Capital 30
WA 30
AFM Capsule Cards PRO Equipment Leasing/Lease F…
What is the defining characteristic that classifies an arrangement strictly as a 'Finance Lease' under the guidelines of Ind AS 116?
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Finance Lease Definition
Equipment Leasing/Lease Financing 30
WA 30
AFM Capsule Cards PRO Financial Mathematics - C…
Not all loans require regular principal payments. Describe the 'Bullet/balloon repayment' method common in certain types of financing.
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Bullet / Balloon Repayment
Financial Mathematics - Calculation of Interest and Annuities 30
WA 30
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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Cash Flow vs Funds Flow
Cash Flow and Funds Flow 30
WA 30
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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 30
WA 30
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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 Committee What is the composition and primary role of the Budget Committee in a large firm? Budget Centre In the context of implementing budgetary control, what constitutes a 'Budget Centre'? Budget Manual What is the purpose of the 'Budget Manual' distributed within a company? 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? 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… AS 1: Disclosure of Accounting Policies What does Accounting Standard 1 (AS 1) mandate regarding the preparation of financial statements and fun… Multiple or Composite Costing When assembling an aircraft or a motor vehicle, why is a 'Multiple/Composite Costing' method required? AS 2: Valuation of Inventories According to AS 2, how should inventories be valued in the financial statements, and which cost formulas… AS 16: Borrowing Costs Under AS 16, what is the accounting treatment for borrowing costs directly attributable to the acquisiti… AS 3: Cash Flow Statements How does AS 3 classify cash flows, and what qualifies as a cash equivalent? Overview of IFRS What does IFRS stand for, and what is its primary purpose in global accounting? 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? Revenue Audit What is the primary aim of a Revenue Audit (or Income & Expenditure audit) in a bank? Meaning of Depreciation How does the Institute of Chartered Accountants of England and Wales (ICAEW) define depreciation? 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… Primary Objective of Audit How has the primary objective of a bank audit shifted from its historical roots to modern times? Suspense Account Concept If a Trial Balance does not tally after various checks, where is the difference temporarily transferred? 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? Cheques Deposited but Not Cleared What is the effect of 'cheques paid into the bank but not yet collected/cleared' on the respective books? Export Pricing Strategy Why might a company agree to export goods at a price significantly lower than its domestic selling price? Information Systems (IS) Audit What is the main objective of an Information Systems (IS) Audit in a highly computerized banking environ… Pointing vs Non-Pointing Accounts In core banking systems, how do 'pointing' accounts differ from 'non-pointing' accounts during reconcili… 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… Standard Costing Concept Standard cost is the estimated cost of production under anticipated conditions. Why is it essential to p… Agency Problem in Finance In large companies, there is often a diverse relationship between ownership and management. What defines… Conversion of Loan to Equity What is the net effect on total claims when a creditor's loan is converted into equity shares? Current Assets Classification When is an asset strictly classified as a 'Current Asset'? Errors by the Bank If the bank mistakenly credits another customer's deposit to your account, what BRS adjustment is needed? 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? Debt-Equity Ratio The mix of outsider funds versus owner funds is critical for assessing long-term solvency. What is the i… 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? Yield to Maturity (YTM) Meaning YTM is the most comprehensive measure of bond return. What exactly does the Yield to Maturity (YTM) repr… Originating vs Responding Entries In an inter-branch transaction (e.g., Draft issued), what are the Originating and Responding entries? Two-Sided Errors What are two-sided errors in the context of trial balance preparation? Factors of Depreciation What are the three basic factors required for calculating the depreciation of an asset? Written Down Value (WDV) Method How does the Diminishing Balance or Written Down Value (WDV) method calculate annual depreciation? Materiality Concept in Expenditure How does the Materiality Concept affect the classification of capital expenditure? 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? Functional Classification of Ratios The traditional classification of ratios is based on financial statements, which is often found to be to… CAATs in Auditing What does CAATs stand for, and how has it transformed the audit process in banks? Risk-Based Internal Audit (RBIA) When did the RBI introduce the Risk-Based Internal Audit (RBIA) system, and what is its core philosophy? Independence of Internal Audit According to RBI guidelines on RBIA, who should the Head of Internal Audit (HIA) directly report to? Concurrent Audit Features What is the defining characteristic of a Concurrent Audit in a bank? Statutory Audit Scope What are the primary focus areas for a Statutory Auditor during a bank branch audit? Separate Entity Concept Why is the capital contributed by an owner considered a liability for the business? Prepaid Expenses If a business pays rent in advance for the next accounting year, how is it treated? Private Company Limits What is the maximum number of members permitted in a Private Limited Company as per the Companies Act 20… Importance of Real-Time Updating Why is it critical for banks to update customer ledgers immediately, unlike other business enterprises? Suspense Account in Balance Sheet If the Suspense Account has a remaining balance at the time of preparing final accounts, where is it sho… One-Sided Errors Before Trial Balance How are one-sided errors rectified if they are detected BEFORE the preparation of the Trial Balance? Profit and Loss Adjustment Account Which account is opened to rectify errors found in Nominal Accounts after the final accounts of that yea… Adjusting Entries What are 'Adjusting Entries' and why are they necessary before preparing final accounts? Units of Production Method When is the Units of Production Method the most suitable choice for calculating depreciation? Parties to a Bill of Exchange Who are the three primary parties involved in a Bill of Exchange? Convention of Conservatism (Prudence) Anticipate no profit, but provide for all possible losses. Which accounting convention is defined by thi… TDS & TAN Essentials Who is responsible for deducting Tax Deducted at Source (TDS), and what mandatory registration must they… Deferred Tax Asset vs Liability Deferred tax arises due to timing differences between accounting income and taxable income. How are thes… Input Tax Credit (ITC) Concept What is the core mechanism in GST that prevents the cascading effect of taxes across the supply chain? 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… Fixed vs Variable Costs How do fixed, variable, and semi-variable costs behave in relation to changes in the volume of productio… Financial vs Cost Accounting What is the fundamental difference in the scope and statutory requirements between Financial Accounting… Cost Accounting Standards (CAS) Which professional body in India is responsible for formulating and issuing Cost Accounting Standards (C… Traditional Approach to Capital Structure The Traditional Position offers a middle ground between the NI and NOI approaches. How does WACC behave… Finance Lease Definition What is the defining characteristic that classifies an arrangement strictly as a 'Finance Lease' under t… Bullet / Balloon Repayment Not all loans require regular principal payments. Describe the 'Bullet/balloon repayment' method common… Cash Flow vs Funds Flow What is the primary difference in the focus of a Cash Flow Statement versus a Funds Flow Statement? Banking Regulation Act Applicability Which specific section of the Banking Regulation Act, 1949 deals with the preparation of financial state…
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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