JAIIB · AFM · Chapter 1

Definition, Scope and Accounting Standards including Ind AS

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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Q

What are the four functions that fall within bookkeeping?

A

The four bookkeeping functions are Identifying financial transactions, Measuring them in money, Recording them in books of original entry, and Classifying them through ledger postings.

Q

On which date was the Accounting Standards Board (ASB) constituted by ICAI?

A

21st April 1977

Q

Which activities are added by accountancy on top of bookkeeping?

A

Accountancy adds designing the bookkeeping system, establishing internal controls, analysing data, reporting to stakeholders, and supplying management with information for decision-making.

Q

Which Indian Accounting Standard (AS) deals with Cash Flow Statements?

A

AS 3

Q

What is the key difference between bookkeeping and accountancy in terms of scope?

A

Bookkeeping is narrow and covers recording only, while accountancy is wider and includes bookkeeping plus summarising, interpreting, and reporting.

Q

Which AS covers Contingencies and Events Occurring After the Balance Sheet Date?

A

AS 4

Q

What is the correct sequence of the four stages of accountancy?

A

The four stages in order are Classification, Recording, Summarising, and Interpreting — remembered by the mnemonic CRSI.

Q

Which AS deals with Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies?

A

AS 5

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