Attempt JAIIB AFM Numerical Practice Quiz and Download PDF

1. GST is levied on the ‘value of supply’. A company sells goods for Rs.5,00,000 but also charges Rs.20,000 for packing, Rs.10,000 for loading, and Rs.5,000 for insurance. What is the taxable value of supply under GST?

Rs.5,00,000
Rs.5,35,000
Rs.5,30,000
Rs.5,20,000

2. An individual’s total income = Rs.9,50,000. He invests Rs.1,50,000 in PPF (Sec 80C). He pays medical insurance premium of Rs.25,000 for self and Rs.30,000 for parents above 60 years (Sec 80D). He also has NPS contribution of Rs.50,000 (Sec 80CCD(1B)). What is the taxable income?

Rs.7,45,000
Rs.7,70,000
Rs.6,95,000
Rs.7,25,000

3. A company’s accounting depreciation is Rs.3,00,000 (straight-line). Tax depreciation under IT Act is Rs.5,00,000 (WDV). Tax rate = 30%. The timing difference is Rs.2,00,000. What deferred tax liability arises?

Rs.90,000
Rs.1,50,000
Rs.30,000
Rs.60,000

4. A company has carry-forward losses of Rs.5,00,000. Tax rate = 30%. Future profits are virtually certain. What is the Deferred Tax Asset (DTA) recognised?

Rs.5,00,000
Rs.1,50,000
Rs.3,50,000
Rs.50,000

5. A company needs to replace machinery costing Rs.20,00,000 after 5 years. It sets up a sinking fund earning 10% per annum. FVIFA (10%, 5 years) = 6.105. What equal annual contribution must be made to the sinking fund?

Rs.4,00,000
Rs.2,00,000
Rs.3,27,600
Rs.3,60,000

6. Sum of Years Digits (SYD) depreciation: Asset cost = Rs.12,00,000; Useful life = 5 years; Residual value = Rs.1,00,000. What is the depreciation in Year 2?

Rs.2,20,000
Rs.3,66,667
Rs.2,93,333
Rs.1,46,667

7. In a bank’s balance sheet as per Schedule III of the Banking Regulation Act, under which schedule is ‘Borrowings from RBI’ classified?

Schedule 1 – Capital
Schedule 4 – Borrowings
Schedule 3 – Deposits
Schedule 5 – Other Liabilities

8. A bank’s balance sheet shows: Advances Rs.400 crore; Investments Rs.200 crore; Cash Rs.50 crore; Fixed Assets Rs.30 crore; Other Assets Rs.20 crore; Deposits Rs.520 crore; Borrowings Rs.80 crore; Capital Rs.30 crore; Reserves Rs.70 crore. What is the Credit-Deposit (CD) ratio?

66.67%
80.00%
83.33%
76.92%

9. From the following data, calculate the Proprietary Ratio (Equity Ratio): Share Capital Rs.15,00,000; Reserves Rs.5,00,000; Long-term Debt Rs.10,00,000; Current Liabilities Rs.8,00,000; Fixed Assets Rs.22,00,000; Current Assets Rs.16,00,000.

40.00%
52.63%
66.67%
57.89%

10. A company’s sales = Rs.60,00,000; COGS = Rs.42,00,000; Gross Profit = Rs.18,00,000; Operating Expenses = Rs.6,00,000; EBIT = Rs.12,00,000; Interest = Rs.2,00,000; EBT = Rs.10,00,000; Tax = Rs.3,00,000; PAT = Rs.7,00,000. What is the Net Profit Ratio?

20.00%
30.00%
11.67%
16.67%

11. A firm’s data: Fixed Assets Rs.40,00,000; Current Assets Rs.20,00,000; Share Capital Rs.25,00,000; Reserves Rs.5,00,000; Long-term Debt Rs.20,00,000; Current Liabilities Rs.10,00,000. What is the Debt-Equity ratio?

1.00:1
0.50:1
2.00:1
0.67:1

12. A company has EBIT of Rs.20,00,000. It has two financing options: Plan A (all equity, 1,00,000 shares) and Plan B (50% debt at 10%, 50,000 shares). Tax rate = 40%. Under Plan B, what is the EPS and financial leverage?

EPS Rs.12; DFL 1.50
EPS Rs.18; DFL 1.67
EPS Rs.20; DFL 2.00
EPS Rs.15; DFL 1.25

13. A company’s Degree of Operating Leverage (DOL) is 4. Sales decrease by 5%. What is the percentage change in EBIT?

5% decrease
10% decrease
20% decrease
25% decrease

14. In a computerised banking system, the posting of a debit to a savings account and credit to a current account for an internal fund transfer is called:

Journal voucher for external transaction
Error rectification entry
Contra entry / Inter-account transfer entry
Suspense clearing entry

15. Under CRAR (Capital to Risk-weighted Assets Ratio) as per Basel III, if a bank has Tier 1 capital of Rs.800 crore and Tier 2 capital of Rs.200 crore, and total risk-weighted assets of Rs.8,000 crore, what is the CRAR and is it compliant with the minimum 11.5% requirement?

CRAR = 10.0%; Non-compliant
CRAR = 12.5%; Compliant
CRAR = 12.5%; Non-compliant
CRAR = 11.5%; Just compliant

16. A company’s data: Net Sales Rs.50,00,000; COGS Rs.35,00,000; Average Inventory Rs.7,00,000; Average Debtors Rs.6,25,000; Average Creditors Rs.5,00,000. Calculate the inventory turnover ratio and average collection period.

Inventory turnover 7 times; collection period 30 days
Inventory turnover 5 times; collection period 30 days
Inventory turnover 4 times; collection period 45 days
Inventory turnover 5 times; collection period 45.6 days

17. A company’s EPS = Rs.8; DPS (dividend per share) = Rs.5; Market price = Rs.120; Book value per share = Rs.60. Calculate the dividend yield and Price to Book ratio.

Dividend yield 6.25%; P/B ratio 1.5x
Dividend yield 4.17%; P/B ratio 2.0x
Dividend yield 4.17%; P/B ratio 1.5x
Dividend yield 6.25%; P/B ratio 2.0x

18. USD/INR spot rate = Rs.83.00. 3-month forward points = 25/30 paise. What is the 3-month forward bid and offer rate?

Forward bid Rs.82.75; Forward offer Rs.82.70
Forward bid Rs.83.25; Forward offer Rs.83.70
Forward bid Rs.83.25; Forward offer Rs.83.30
Forward bid Rs.83.00; Forward offer Rs.83.30

19. An exporter will receive USD 2,00,000 in 3 months. Spot USD/INR = Rs.83.50. 3-month forward rate = Rs.84.00. If the exporter enters a forward sale contract, what is the guaranteed INR receipt, and what is the opportunity cost/gain if spot rate on maturity is Rs.83.00?

Guaranteed receipt Rs.1,68,00,000; opportunity cost Rs.2,00,000
Guaranteed receipt Rs.1,68,00,000; opportunity gain Rs.1,00,000
Guaranteed receipt Rs.1,67,00,000; no gain or loss
Guaranteed receipt Rs.1,66,00,000; opportunity cost Rs.2,00,000

20. A company issued 12% debentures of Rs.1,000 each at a discount of 5%, redeemable at par after 8 years. Tax rate = 35%. Approximate cost of debt: Kd = [I(1-t) + (RV-NP)/n] / [(RV+NP)/2]. What is the after-tax cost of debt?

12.00%
7.80%
10.50%
8.83%