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Banking Company Accounts Quiz

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The final accounts of a banking company are prepared as per

a)

Companies Act, 2013

b)

Banking Regulation Act, 1949

c)

RBI Act, 1934

d)

Income Tax Act

2.

The balance sheet of a banking company is prepared in

a)

Horizontal form

b)

Vertical form

c)

Account form

d)

Any form

3.

The balance sheet format of banks is given in

a)

Schedule VI of Companies Act

b)

Schedule III of Companies Act

c)

Third Schedule of Banking Regulation Act

d)

RBI Circular

4.

Which of the following is a liability of a bank?

a)

Cash in hand

b)

Loans and advances

c)

Deposits

d)

Bills discounted

5.

Which item appears under “Assets” in a bank balance sheet?

a)

Reserves and surplus

b)

Borrowings

c)

Cash and balances with RBI

d)

Capital

6.

Non-Performing Asset (NPA) means

a)

Asset yielding regular income

b)

Asset not producing income

c)

Asset purchased recently

d)

Asset fully secured

7.

An advance becomes NPA when interest or instalment remains overdue for more than

a)

30 days

b)

60 days

c)

90 days

d)

120 days

8.

Which of the following is NOT a type of NPA?

a)

Sub-standard asset

b)

Doubtful asset

c)

Loss asset

d)

Fixed asset

9.

Sub-standard asset is one which remains NPA for a period not exceeding

a)

6 months

b)

12 months

c)

18 months

d)

24 months

10.

Rebate on Bills Discounted represents

a)

Income earned

b)

Unearned income

c)

Capital receipt

d)

Provision

11.

Rebate on Bills Discounted is shown on

a)

Asset side

b)

Liability side

c)

Debit side of P&L

d)

Credit side of P&L

12.

Interest on NPAs should be

a)

Accrued

b)

Ignored

c)

Recognised only on realisation

d)

Transferred to reserve

13.

Which account is credited for rebate on bills discounted?

a)

Bills Discounted A/c

b)

Profit and Loss A/c

c)

Rebate on Bills Discounted A/c

d)

Interest Received A/c

14.

Profit and Loss Account of a bank shows

a)

Gross profit only

b)

Net profit only

c)

Income and expenditure

d)

Assets and liabilities

15.

Interest earned by banks is shown under

a)

Other income

b)

Operating income

c)

Interest earned

d)

Commission income

16.

Commission, exchange and brokerage are shown under

a)

Interest earned

b)

Other income

c)

Operating expenses

d)

Provisions

17.

Provision for NPAs is shown in

a)

Assets side

b)

Liabilities side

c)

Profit and Loss Account

d)

Capital account

18.

Bills discounted and purchased appear under

a)

Cash balance

b)

Investments

c)

Advances

d)

Other assets

19.

Which of the following is NOT included in “Other Liabilities and Provisions”?

a)

Bills payable

b)

Provision for tax

c)

Inter-office adjustments

d)

Cash in hand

20.

Acceptances and endorsements on behalf of customers are shown as

a)

Assets

b)

Liabilities

c)

Contingent liabilities

d)

Capital

21.

Balance with RBI includes

a)

Cash reserve ratio

b)

Statutory liquidity ratio

c)

Call money

d)

Term deposits

22.

Which item is shown under “Reserves and Surplus”?

a)

Capital reserve

b)

Bills payable

c)

Rebate on bills discounted

d)

Acceptances

23.

Profit before tax is arrived at after

a)

Adding provisions

b)

Deducting provisions

c)

Ignoring provisions

d)

Transferring reserves

24.

Which of the following is an expense of a bank?

a)

Interest on advances

b)

Interest on investments

c)

Interest on deposits

d)

Commission received

25.

Banking companies are required to publish their accounts

a)

Monthly

b)

Quarterly

c)

Half-yearly

d)

Annually