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This is the complete JAIIB AFM mock test series for 2027, covering Accounting & Financial Management for Bankers module by module and chapter by chapter. Every test follows the IIBF objective pattern, shows the correct answer the moment you choose an option, and explains why the other options are wrong. Answers appear instantly with explanations, there is no negative marking, and you can practise the free tests without creating an account.
Scroll down for free sample questions with answers, the JAIIB exam pattern and marking scheme, and a FAQ covering pass marks, question counts and how many mocks to attempt.
Try these 12 sample questions right now — no signup, no payment. Click Show answer to reveal the correct option and the reasoning behind it. They are taken directly from the free tests listed above.
According to the American Institute of Certified Public Accountants (AICPA), which of the following best defines accounting?
Correct answer: B — An art of recording, classifying and summarising in a significant manner and in terms of money
The source text explicitly states the AICPA definition: 'Accounting is an art of recording, classifying and summarising, in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof'.
The fundamental accounting equation 'Assets = Liabilities + Capital' is derived from which accounting concept?
Correct answer: C — Dual Aspect Concept
The Dual Aspect concept dictates that every transaction has two effects (debit and credit). The fundamental equation Assets = Liabilities + Capital is the direct mathematical expression of this concept.
Which regulatory body in India is responsible for advising the Central Government on the formulation of accounting policies and standards under the Companies Act, 2013?
Correct answer: B — National Financial Reporting Authority (NFRA)
As per the text, the 'National Financial Reporting Authority (NFRA)' is an independent regulatory body constituted under Section 132 of the Companies Act, 2013. It advises the Central Government on formulating accounting policies and standards, replacing the old NACAS.
Which of the following accounting concepts justifies the practice of charging depreciation on fixed assets over their useful lives rather than expensing the entire cost at purchase?
Correct answer: B — Going Concern Concept
The Going Concern concept assumes the business will continue its operations indefinitely. This long-term view is the reason why assets are depreciated over their useful lives rather than expensed immediately.
Which of the following is NOT an approach generally used for deriving the fair value under Fair Value Accounting?
Correct answer: C — Historical cost approach
The source states that fair value approaches include Market approach, Income approach, and Cost approach. Historical cost is the basis for traditional accounting, not fair value accounting.
Identify the incorrect statement regarding the 'Business Entity Concept'.
Correct answer: B — Capital contributed by the proprietor is treated as an asset for the business.
Because of the Business Entity concept, the business is treated as artificially separate from the owner. Therefore, capital contributed by the owner is treated as a LIABILITY to the business, not an asset.
According to Ind AS 109, which of the following is the new model replacing the 'incurred loss model' for calculating provisions for Standard Assets and NPAs?
Correct answer: B — Expected Credit Loss (ECL) Model
The text explicitly mentions that the impairment requirements of Ind AS 109 are based on an Expected Credit Loss (ECL) model that replaces the incurred loss model under the extant framework.
Which accounting concept requires that expenses incurred to generate specific revenues must be recognised in the same accounting period as the revenues?
Correct answer: A — Matching Concept
The Matching Concept determines true profit/loss by matching the revenues earned during a period with the exact expenses incurred to generate those specific revenues in the same period.
Group Question: A leading Scheduled Commercial Bank in India is migrating to Indian Accounting Standards (Ind AS) as per the RBI roadmap. The bank must classify its financial assets and measure credit losses accordingly. Under Ind AS 109, which stages of ECL must the bank apply for an asset where there has NOT been a significant increase in credit risk since initial recognition?
Correct answer: B — 12-Month ECL
According to the 3-stage approach under Ind AS 109 in the source, Stage 1 (12 Months ECL) applies to exposures where there has not been a significant increase in credit risk since initial recognition.
Group Question: M/s ABC Bank recently acquired a new banking software system for Rs 5,00,000, paid Rs 50,000 for its installation, and the branch manager fell severely ill shortly after. The bank decides to record the software at Rs 5,50,000 and completely ignores the manager's health in the financial statements. Which concept prevents the bank from recording the health impact of the branch manager in the books of accounts?
Correct answer: B — Money Measurement Concept
The Money Measurement concept states that only facts expressible in terms of money can be recorded. Human resources and management health, though impactful, cannot be reliably measured in monetary terms.
Group Question: A leading Scheduled Commercial Bank in India is migrating to Indian Accounting Standards (Ind AS) as per the RBI roadmap. The bank must classify its financial assets and measure credit losses accordingly. How should the bank recognise the accounting impact on the application of Ind AS at the transition date?
Correct answer: C — Recognise in Equity (Reserves and Surplus)
The source text notes that the accounting impact on the application of Ind AS at the transition date shall be recognised in Equity (Reserves and Surplus).
Group Question: M/s ABC Bank recently acquired a new banking software system for Rs 5,00,000, paid Rs 50,000 for its installation, and the branch manager fell severely ill shortly after. The bank decides to record the software at Rs 5,50,000 and completely ignores the manager's health in the financial statements. Recording the software at Rs 5,50,000 (purchase price + installation) irrespective of its current market value follows which concept?
Correct answer: C — Historical Cost Concept
The Cost Concept dictates that assets are recorded at their historical cost, which includes the purchase price plus any installation expenses necessary to put the asset in working order.
Our mock tests mirror the pattern below so that your practice score is a fair predictor of your real score. IIBF revises the syllabus and pass criteria from time to time, so treat this as a working summary and confirm the current rules on the official IIBF website before your exam.
| Particular | Details |
|---|---|
| Conducting body | Indian Institute of Banking & Finance (IIBF) |
| Mode | Online, at designated test centres |
| Number of papers | 4 |
| Marks per paper | 100 |
| Duration per paper | 120 minutes (2 hours) |
| Question type | Objective multiple choice, including case studies and numerical problems |
| Negative marking | None |
| Minimum per paper | 45 marks out of 100 |
| Aggregate to pass | 50 per cent across all papers in one attempt |
| Paper credit | A paper scored at 50 or above is normally carried forward if the aggregate is not cleared |
| Attempts allowed | Four consecutive attempts within the membership validity period |
| Medium | English and Hindi |
| Paper | Full name | Mock tests here | Practise |
|---|---|---|---|
| IE-IFS | Indian Economy & Indian Financial System | 46 | JAIIB IE-IFS mock test → |
| PPB | Principles & Practices of Banking | 55 | JAIIB PPB mock test → |
| AFM | Accounting & Financial Management for Bankers | 35 | JAIIB AFM mock test → |
| RBWM | Retail Banking & Wealth Management | 26 | JAIIB RBWM mock test → |
Most candidates fail JAIIB not because the syllabus is hard but because they read passively and never test recall under time pressure. The fastest correction is to reverse the order: attempt the chapter test first, score badly, and then read the chapter. You will remember far more, because you now know exactly what you did not know.
Work through one module at a time using the accordion above. Each chapter test is short enough to finish in a break between shifts. When you get a question wrong, do not simply note the right answer — read the explanation and write one line in your own words about why your choice was wrong. That one line is what survives to exam day.
In the last two weeks, switch to full-length timed papers. Sit for the whole 120 minutes without pausing, keep your phone out of reach, and do not check answers until you submit. The goal at that stage is not knowledge, it is stamina and pacing: roughly one question per minute with twenty minutes left over for the numerical questions in AFM.
A practical target is 65 per cent or better on every chapter test before you attempt a full paper, and a consistent 60 per cent on full papers before exam day. That margin absorbs the difficulty gap between practice questions and the real IIBF paper.
Yes. Every test marked FREE opens with no payment and no signup. You can also practise the sample questions on this page instantly. Premium tests unlock the full 700+ question bank along with detailed explanations for every option.
Each JAIIB paper carries 100 marks and is normally set as 100 objective questions to be answered in 120 minutes. Some papers include case-study and numerical questions that carry more than one mark, so the question count can be slightly under 100. Always confirm the current pattern on the official IIBF website before your exam.
A candidate must score a minimum of 45 out of 100 in each paper, with an aggregate of 50 per cent across all papers taken in a single attempt. If you score 50 or more in an individual paper but fail the aggregate, that paper is normally credited and carried forward. Verify the current rule with IIBF, as pass criteria have been revised in the past.
No. IIBF does not apply negative marking in JAIIB, so you should attempt every question rather than leaving blanks. Our mock tests follow the same rule so your practice score reflects your real score.
Work chapter by chapter first, then move to full-length papers. A realistic target is one chapter test a day for six weeks, then one full-length timed paper every second day in the final fortnight. Reviewing every wrong answer matters more than the number of tests.
No account is needed to take a free test. Creating a free account only adds score history, best-score tracking per test and a coverage bar so you can see which chapters you have not touched yet.
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