JAIIB AFM MARATHON 5
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the meaning of 'Going Concern' concept in accounting?
Going Concern assumes that a business will continue to operate indefinitely and will not be liquidated in the near future, allowing assets to be recorded at cost rather than liquidation value.
What is the meaning of 'Dual Aspect Concept' in accounting?
Every transaction has two aspects: debit and credit.
What does the Matching Concept in accounting require?
The Matching Concept requires that expenses incurred in an accounting period must be matched with the revenues earned during the same period to determine the correct profit or loss.
What is the Profitability Index (PI) in capital budgeting?
Ratio of present value of inflows to initial investment cost.
What is the difference between capital expenditure and revenue expenditure?
Capital expenditure creates a long-term asset or benefit (e.g., purchase of machinery), while revenue expenditure is incurred for day-to-day operations and is fully charged to the income statement in the same period.
What is the meaning of 'Conservatism Concept' in accounting?
Anticipate no profit but provide for all possible losses.
What is a Bank Reconciliation Statement (BRS)?
A BRS is a statement prepared to reconcile the difference between the cash book balance of a business and the balance shown in the bank passbook, identifying outstanding cheques, deposits in transit, and bank charges.
What is Inventory Turnover Ratio?
Cost of goods sold divided by average inventory held.
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