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WorksheetsFinal Accounts of Banking Companies - Module 2
Total questions: 62
Worksheet time: 31mins
Name
Class
Date
1.
Name of Student
4 lines
2.
Roll Number
4 lines
3.
1. The Regulator of Banking Companies in India
a)
SEBI
b)
RBI
c)
SBI
d)
All of the above
4.
2. The Act which regulates banking business in India
a)
Banking Regulation Act 2013
b)
Banking Regulation Act 1991
c)
Banking Regulation Act 1956
d)
Banking Regulation Act 1949
5.
3. Which of the following is correct as per Sec 5(b) of Banking Regulation Act
a)
Lending for the purpose of accepting or investment of deposits of money
b)
Accepting for the purpose of lending or investment of money
c)
Both are correct
d)
None are correct
6.
4. Scheduled banks are those banks whic are named in the ...................
a)
Second Schedule of Banking Regulation Act 1949
b)
Second Schedule of RBI Act 1934
c)
Third Schedule of Bnking Regulation Act 1949
d)
Third Schedule of RBI Act 1934
7.
5. Which is the major source of income for banking companies
a)
Sales Revenue
b)
Interest Income
c)
Royaltee
d)
Commission on Sales
8.
6. The major expenditure for a banking company is ....
a)
Salary to staff
b)
Rent of building
c)
Commission to agents
d)
Interest to Deposits
9.
7. Banking Companies are generally NOT allowed to undertake ........ as per Sec 8 of the Banking Regulation Act
a)
Trading of goods
b)
Accepting of Deposits
c)
Lending of Money
d)
Transfer of Funds
10.
8. Non- Banking Assets generally means ....
a)
Assets of other comanies
b)
Assets constructed by banks for customer satisfaction
c)
Assets created for employee satisfaction
d)
Assets seized in satisfaction of dues from defaulted customers
11.
9. Non- Banking Assets will be shown under the ......
a)
Schedule 8 Investments
b)
Schedule 9 Advances
c)
Schedule 10 Fixed Assets
d)
Schedule 11 Other Assets
12.
10. Non-Banking Assets are to disposed with in a period of ........
a)
1 Year
b)
7 Years
c)
3 Years
d)
10 Years
13.
11. Commission or Brokerage on shares issued by banks shall not exceed ............% of paidup value of such shares
a)
1%
b)
2%
c)
3.5 %
d)
2.5%
14.
12. Banking Company cannot pay dividend until all of its capitalised expenses have been completly written off . The applicable section of Banking Regulation Act is ......
a)
Sec 11
b)
Sec 15
c)
Sec 20
d)
Sec 18
15.
13. Sec 17 of the Banking Regulation Act requires transfer of .....% of Profit to Reserves
a)
10%
b)
15%
c)
20%
d)
25%
16.
14. CRR stands for .......
a)
Cash Requiremet Rate
b)
Capital Requirement Ratio
c)
Cash Reserve Ratio
d)
Capital Reserve Ratio
17.
15. SLR stands for
a)
Statutory Liability Ratio
b)
Self Liquidity Ratio
c)
Self Liquidity Rate
d)
Statutory Liquidity Ratio
18.
16. The CRR should be maintained as deposit with ......
a)
SEBI
b)
Escrow Account
c)
RBI
d)
SBI
19.
17. CRR and SLR amounts are calculated as a percentages of ......
a)
Total cash collection per day
b)
Total demand and time liabilities
c)
Total Liquid Assets
d)
Total Capital Employed
20.
18. Banking companies can grant loans and advances on the security of its own shares . The Statement is ....
a)
True
b)
False
c)
Cannot Say
21.
19. As banks are folllowing Slip System , they will not maintain .......
a)
Journal
b)
Ledger
c)
Trial Balance
d)
All of the Above
22.
20. Which of the following better regarded as the features of accounting for banks.
a)
Slip System
b)
Daily Trial Balance and Summary Sheets
c)
Self Balancing and Continous Check
d)
Double Vocher system
e)
All of the Above
23.
21. Final Account of Banking Companies consists of .....
a)
Form A -Profit and Loss Account and Form B -Balance Sheet
b)
Form A - Balance Sheet and Form B - Profit and Loss Account
c)
Form C Profit and Loss Account and Form D Balance Sheet
d)
None of the Above
24.
22. How many schedules are there in the Final Accounts of Banking Companies
a)
15
b)
4
c)
12
d)
16
25.
23. How many schedules are there in the P&L account of Banking Companies
a)
2
b)
12
c)
4
d)
16
26.
24. Discount received on the Bills will be shown under .......
a)
Schedule 13 Interest Earned
b)
Schedule 14 Other Income
c)
Schedule 15 Interest Expended
d)
Schedule 16 Operating Expenses
27.
25. Interest paid to deposits will be shown in the ....
a)
Schedule 13
b)
Schedule 14
c)
Schedule 15
d)
Schedule 16
28.
26. Commission,exchange and bokerage will be shown under.........
a)
Schedule 13
b)
Schedule 14
c)
schedule 15
d)
schedule 16
29.
27. Amount set aside for Income Tax will be shown under the heading ...... in the P& L Account
a)
Schedule 15 Interest Expended
b)
Schedule 16 Operating Expenses
c)
Provisions and Contingencies
d)
Appropriations
30.
28. Proposed Dividend will be shown under the heading ------ in the P&L Account
a)
Schedule 16 Operating Expenses
b)
Provisions and Contingencies
c)
Appropriations
d)
None of the above
31.
29. Number of Schedules in the Balance Sheet of Banking Companies
a)
10
b)
14
c)
12
d)
16
32.
30. Number of Schedules on the Capital and Liabilities are.....
a)
5
b)
11
c)
6
d)
12
33.
31. Loans and Advances granted to customers will shown under the ...... of Balance Sheet
a)
Liabilities Side
b)
Assets Side
c)
Both of the Above
d)
None of the Above
34.
32. Very short term advances granted by banks which are repayable on demand is called as ......
a)
Borrowings
b)
Cash Credit
c)
Over Draft
d)
Money at Call
35.
33. Schedule 3 Deposits means all such deposits made by the banks for Investment . State whether it is True or False
a)
True
b)
False
36.
34. Capital and Liability side of the balance sheet does NOT include -------
a)
Capital
b)
Reserves and Surplus
c)
Borrowings
d)
Advances
37.
35. Terms Loans granted by the banks to its customers will be shown under the heading .....
a)
Schedule 4 Borrowings
b)
Schedule 5 Other Liabilities
c)
Schedule 9 Advances
d)
All of the Above
38.
36. Find the ODD one out
a)
Loans
b)
Cash Credit
c)
Over Draft
d)
Current Account
e)
Discounting of Bills
39.
37. Debit balance of inter office adjustments in resect of bank branches will be shown under ................
a)
Schedule 5 Other Liabilities and Provisions
b)
Schedule 11 Other Assets
c)
Schedule 6 Cash in hand
d)
None of the Above
40.
38. Schedule 8 in the Balance Shhet is .....
a)
Loans and Advances
b)
Deposits
c)
Investments
d)
Borrowings
41.
39. Schedule 12 deals with ..........
a)
Provisions and Contingencies
b)
Current Liabilities
c)
Contingent Liabilities
d)
Continuation Liabilities
42.
40. State whether TRUE or FALSE "The amount of Contingent Liabilities will be added to capital and liabilities to arrive at the Balance Sheet Total "
a)
True
b)
False
43.
41. Which of the following is NOT a Contingent Liability
a)
Claims against the banks not acknowledged as debts
b)
Acceptances, Endorsements & Other Obligations
c)
Liability for partly paid investments
d)
Rebate on Bills Discounted
e)
Guarantees given onbehalf of constituents
44.
42. Rebate on bills discounted is also called as......
a)
Trade Discount
b)
Expired Discount
c)
Unexpired Discount
d)
ADvance Discount
45.
43. Interest on Doubtful Debts will be credited to .........
a)
Interest Account
b)
Loan Account
c)
Income Account
d)
Interest Suspense Account
46.
44. Closing balance of Rebate on Bills Discounted given inside the Trial Balance shall be shown as.......
a)
Deduction from the Interest Earned in Shedule 13
b)
Other Liabilities and Provisions in Schedule 5
c)
Provisions and Contingencies in the P&L Account
d)
Other Income in Scgedule 14
47.
45. Rebate on bills discounted given as an adjustment will be dealt in P&L Account as ......
a)
Deduction from the Interest Earned in Schedule 13
b)
Provisions and Contingencies in the P&L Accountption
c)
Added to the Interest Expended in Schedule 15
d)
Deduction from the Other Income in Schedule 14
48.
46. The Prudential Accounting Norms for banks were suggested by a committee under the chaimanship of ..
a)
Dr. Manmohan Sing
b)
Dr. Bimal Jalan
c)
Dr. Reguram Rajan
d)
M Narasimham
49.
47. Prudential Accounting Norms issued by RBI does NOT inculdes .....
a)
Asset Classification
b)
Income Recognition
c)
Credit Creation
d)
Provisioning
50.
48. NPA stands for
a)
Non- Private Assets
b)
National Performing Assets
c)
Non-Public Assets
d)
Non- Performing Assets
51.
49. A loan asset will be classified as NPA, if it is overdue for a period of morethan ...... days
a)
60 days
b)
90 days
c)
180 days
d)
364 days
52.
50. Which of the following is NOT a category in the Assets Classification
a)
Standard Assets
b)
High Standard Assets
c)
Substandard Assets
d)
Doubtful Assets
e)
Loss Assets
53.
51. Loan assets which do not carry morethan normal credit risk is called .......
a)
Loss Assets
b)
Doubtful Assets
c)
Standard Assets
d)
Substandard Assets
54.
52. Loan Assets remaining NPA for a period exceeding 1 year is called s....
a)
Standard Assets
b)
Substandard Assets
c)
Doubtful Assets
d)
Loss Assets
55.
53. Interest Income on NPA should be recognised on .... basis
a)
Accrual basis
b)
Cash basis
c)
Both of the above
d)
None of the Above
56.
54. The required provision on Standard Assets are.....
a)
10%
b)
0.5%
c)
0.6%
d)
0.4%
57.
55. The unsecured Doubtful Assets attracts a provision of ......
a)
25%
b)
40%
c)
15%
d)
100%
58.
56. CRAR stands for
a)
Capital Refund Adequacy Ratio
b)
Capital Risk Adequacy Ratio
c)
Capital to Risk-weighted Assets Ratio
d)
Capital to Risk Adequacy Ratio
59.
57. Tier 1 Capital does NOT include
a)
Paid up Capital
b)
Statutory Reserves
c)
Disclosed Free Reserves
d)
Undisclosed Free Reserves and General Loss Reserves
60.
58. Capital Adequacy Ratio is inaccordance with the norms of ......
a)
World Bank
b)
IMF
c)
Basel Committee
d)
None of the Above
61.
59. Interest income on Performing Assets will be recognised on ...... basis
a)
Accrual Basis
b)
Cash Basis
c)
Both of the above
d)
None of the above
62.
60. Secured Doubtful Assets , remaining doubtful for 1 to 3 years attracts a provision of .......
a)
15%
b)
25%
c)
40%
d)
100%
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