JAIIB AFM Most Expected Questions Part-2 with Answers for Exam Practice

JAIIB AFM Most Expected Questions focuses on exam-oriented MCQs based on key accounting concepts. It covers important topics like cost concept, accrual accounting, conservatism, and accounting principles in a simple and practical way.

These are highly useful for JAIIB students as they help in quick revision, improve accuracy, and build confidence by practicing real exam-level questions that are frequently asked.

JAIIB AFM Most Expected Questions

JAIIB AFM Most Expected Questions explains important accounting concepts through MCQs, such as cost concept, depreciation, money measurement, separate entity, and revenue recognition. It highlights how assets are recorded at historical cost, not market value, and explains the treatment of expenses, liabilities, and prepaid items. The session also covers conservatism, accrual accounting, and materiality concepts, helping students understand the practical application of accounting standards for JAIIB exams.

JAIIB AFM Practice Questions

Practice these most expected MCQs to strengthen your understanding of key accounting concepts and improve your exam performance. 

1. A machine is purchased including transport and installation cost. How will it be recorded?

A. Market value
B. Cost excluding installation
C. Total cost including all expenses
D. Only purchase price
Answer: C

2. Annual maintenance cost of a machine is treated as:

A. Capital expenditure
B. Revenue expenditure
C. Asset
D. Liability
Answer: B

3. Depreciation is calculated based on:

A. Market value
B. Replacement value
C. Historical cost
D. Fair value
Answer: C

4. Increase in market value of an asset is:

A. Recorded immediately
B. Ignored under cost concept
C. Added to capital
D. Treated as income
Answer: B

5. Hiring a skilled CEO increases business value but is not recorded because:

A. It is illegal
B. It is non-monetary
C. It is a liability
D. It is an expense
Answer: B

6. Owner pays personal electricity bill from business account. It is treated as:

A. Business expense
B. Liability
C. Drawings
D. Capital
Answer: C

7. Advance received for goods to be delivered next year is treated as:

A. Revenue
B. Asset
C. Liability
D. Profit
Answer: C

8. A firm takes a loan and buys furniture. What is the impact?

A. Only assets increase
B. Only liabilities increase
C. Both assets and liabilities increase
D. Capital increases
Answer: C

9. Rent paid for 12 months but 3 months used in current year. Expense recorded will be:

A. Full amount
B. Zero
C. 3 months only
D. 6 months
Answer: C

10. Provision for bad debts is made based on:

A. Profit concept
B. Conservatism principle
C. Cost concept
D. Matching concept
Answer: B

This session of JAIIB AFM Most Expected Questions Part 2 helps students strengthen core accounting concepts through practical MCQs. Regular practice of such questions improves accuracy and ensures better performance in the exam.