Preparing for the JAIIB Accounting and Financial Management (AFM) paper requires a good mix of concepts, numerical practice, and regular revision. Since AFM covers accounting principles, financial statements, financial management, taxation, and costing, solving MCQs is an important part of preparation. Practice questions help banking professionals understand the type of questions asked, improve calculation speed, and identify topics that need more revision. Candidates can use free e-books, topic-wise quizzes, and other JAIIB AFM resources to make their preparation more structured.
Why are JAIIB AFM practice MCQs important?
JAIIB AFM practice MCQs help candidates revise concepts while getting familiar with exam-style questions. Regular practice is especially useful for numerical and application-based topics where understanding the concept is as important as remembering the formula. Solving MCQs also helps candidates identify common mistakes and improve their speed before the exam.
- Strengthen accounting and financial management concepts
- Improve speed and accuracy
- Identify weak topics
- Practise numerical and application-based questions
- Revise important formulas and concepts
- Build confidence for the AFM paper
Attempt JAIIB AFM numerical practice quiz
If you want to clear JAIIB with confidence, do not ignore numerical questions. Regular practice will help you solve questions faster and reduce mistakes in the exam.
1. A machine was purchased on 1st July for Rs.9,60,000. The company follows the Written Down Value (WDV) method of depreciation at 20% per annum. The financial year ends on 31st March. What is the depreciation charged for the first year?
2. A machine costing Rs.12,00,000 was purchased on 1st October. Depreciation is charged at 20% per annum under the Written Down Value method. The company closes books on 31st March. What is the depreciation charge for the first year?
3. A project requires an initial investment of Rs.10,00,000 and generates annual cash inflows of Rs.3,00,000 for 5 years. The cost of capital is 10%. The present value annuity factor at 10% for 5 years is 3.791. What is the NPV of the project?
4. A capital project requires Rs.15,00,000 investment and generates uneven cash flows of Rs.4,00,000, Rs.5,00,000, Rs.6,00,000, and Rs.5,00,000 over four years. The cost of capital is 10%. PV factors are 0.909, 0.826, 0.751, and 0.683 respectively. What is the NPV of the project?
5. A firm reports EBIT of Rs.18,00,000. Interest is Rs.4,50,000, annual principal repayment is Rs.3,00,000, tax rate is 30%, and depreciation is nil. Using DSCR = (PAT + Depreciation + Interest)/(Interest + Principal Repayment), what is the DSCR?
6. A company used CAPM with risk-free rate 6%, market return 14%, and beta 1.2. What is the cost of equity?
7. Risk-free rate is 6%, expected market return is 14%, and beta of the security is 1.25. What is the cost of equity using CAPM?
8. A manufacturing entity set material standard at 5 kg per unit at Rs.20 per kg. Actual production was 1,000 units using 5,300 kg costing Rs.1,11,300. What is the material price variance?
9. Labour standard is 2 hours per unit at Rs.50 per hour. Actual output is 1,000 units and actual labour is 1,800 hours at Rs.55 per hour. What is the labour cost variance?
10. A production batch of 500 units incurred material cost of Rs.1,50,000 and labour cost of Rs.75,000. Overheads are absorbed at 60% of labour cost. What is the cost per unit?
11. A product sells for Rs.200 per unit with variable cost of Rs.140 per unit. Fixed costs are Rs.6,00,000. What is the break-even quantity in units?
12. A company’s capital structure consists of equity of Rs.40 lakh costing 15% and debt of Rs.60 lakh costing 10%. Corporate tax rate is 30%. What is the WACC?
13. An ordinary annuity pays Rs.50,000 annually for 6 years at 8% interest. The PV annuity factor is 4.623. What is the present value of the ordinary annuity?
14. An investor contributes Rs.50,000 at the end of each year for 5 years at an interest rate of 10%. The PV annuity factor is 3.791. What is the present value of the ordinary annuity?
15. Under the same conditions as above (Rs.50,000 annually, 10% for 5 years, PV factor 3.791), the investor contributes at the beginning of each year instead of the end. What is the present value of the annuity due?
16. A firm capitalised reserves to issue bonus shares in 1:2 ratio. Paid-up capital before bonus was Rs.60,00,000. What is the amount capitalised for the bonus issue?
17. A company has paid-up equity capital of Rs.8 crore and free reserves of Rs.12 crore. It announces a bonus issue in the ratio of 1:4. What amount will be capitalised for issuing bonus shares?
18. A company forfeited 10,000 shares of Rs.10 each for non-payment of allotment money of Rs.3 per share. Application money of Rs.5 per share had been received. The shares were later reissued at Rs.8 per share as fully paid. What amount is transferred to capital reserve?
19. A company issued 10,000 shares of Rs.10 each at par. Application money Rs.3 and allotment money Rs.4 per share were received. Final call of Rs.3 per share was not paid, leading to forfeiture. What amount is credited to the forfeited shares account?
20. Market price of a company’s share is Rs.180 and earnings per share is Rs.9. What is the price-earnings ratio?
Quiz Summary
Where can you download JAIIB AFM practice MCQs for free?
Candidates can use free JAIIB AFM practice resources from Oliveboard for topic-wise revision and MCQ practice. The resources include module-wise questions, numerical practice, case study questions, and important MCQs. These resources can be used along with regular study material to cover the AFM syllabus in a structured manner.
| Study Material | Download Link |
| JAIIB AFM Module A Practice Questions | Download PDF |
| JAIIB AFM Module B Practice Questions | Download PDF |
| JAIIB AFM Module C Practice Questions | Download PDF |
| JAIIB AFM Module D Practice Questions | Download PDF |
| JAIIB AFM Most Repeated MCQs | Download PDF |
| JAIIB AFM Case Study Quiz | Attempt Now |
| JAIIB AFM Numerical Quiz | Download PDF |
What topics are covered in JAIIB AFM practice MCQs?
The practice MCQs should cover all four modules of the AFM syllabus. Candidates should solve questions from accounting basics, financial statements, financial management, taxation, and costing. A balanced question set allows candidates to revise both theoretical and numerical areas of the paper.
| Module | Important topics |
|---|---|
| Module A | Accounting concepts, accounting standards, journal, ledger, BRS, trial balance, depreciation, bills of exchange and bank audit |
| Module B | Financial statements, company accounts, cash flow statements, banking accounts, core banking systems and computerised accounting |
| Module C | Financial management, ratio analysis, financial mathematics, bond valuation, capital budgeting, cost of capital, working capital and derivatives |
| Module D | Income Tax, TDS, GST, cost accounting, costing methods, standard costing, marginal costing and budgeting |
What types of questions should you practise for JAIIB AFM?
AFM preparation should include different types of questions rather than only direct theory-based MCQs. Candidates should practise numerical, statement-based, conceptual, and case-based questions. This helps them understand how accounting and financial management concepts can be tested from different angles.
- Concept-based questions: Test basic accounting and financial management concepts.
- Numerical questions: Cover formulas, ratios, valuation, costing, and financial calculations.
- Statement-based questions: Check understanding of accounting and financial concepts.
- Case study questions: Test the practical application of concepts.
- Previous-year questions: Help candidates understand recurring topics and question patterns.
Which JAIIB AFM topics need more MCQ practice?
Some AFM topics require repeated practice because they involve calculations, formulas, or multiple steps. Financial Management is particularly important for numerical practice, while accounting topics such as BRS, depreciation, and financial statements require strong conceptual understanding. Taxation and costing also benefit from regular revision through MCQs.
| Area | Topics to practise |
|---|---|
| Accounting | BRS, depreciation, errors, accounting standards and journal entries |
| Financial statements | Balance sheet, P&L account, cash flow and company accounts |
| Financial management | Ratio analysis, bond valuation, capital budgeting and cost of capital |
| Taxation | Income Tax, TDS and GST |
| Costing | Marginal costing, standard costing and budgeting |
How can you use the JAIIB AFM free e-book effectively?
Downloading the free e-book is only the first step. Candidates should include MCQ practice in their daily study routine and review the questions they answer incorrectly. This approach helps connect concepts with actual questions and makes revision more effective.
- Study one topic from the AFM syllabus.
- Solve MCQs related to the same topic.
- Mark questions that you answered incorrectly.
- Revise the concept or formula behind the mistake.
- Reattempt the incorrect questions after a few days.
- Practise numerical and case study questions regularly.
- Take full-length mock tests during the final stage of preparation.
Also Check:
| Topics | Download Link |
| Bankers’ Special Relationship | Download Notes |
| Security Considerations, IT Security & IT Audit | Download Notes |
| Foreign Exchange, Forex Market | Download Notes |
| Consumer Protection Act COPRA | Download Notes |
| Trial Balance, Rectification of Errors | Download Notes |
| Balance Sheet Equation | Download Notes |
| Ratio Analysis | Download Notes |
| Depreciation & its Accounting | Download Notes |
How can working bankers prepare for JAIIB AFM with MCQs?
Working banking professionals can use short and consistent practice sessions to prepare for AFM. Instead of depending on long study hours, candidates can divide their preparation into concept revision, MCQ practice, and error analysis. Weekend sessions can be used for numerical quizzes, case studies, and mock tests.
| Daily activity | Suggested focus |
|---|---|
| Concept revision | Revise one AFM topic |
| MCQ practice | Solve topic-wise questions |
| Error analysis | Review incorrect answers |
| Formula revision | Revise important formulas and calculations |
| Weekend practice | Attempt numerical, case study or mock tests |
What other JAIIB AFM resources can you use?
Candidates can combine the free AFM e-book with other JAIIB resources for better preparation. Module-wise practice questions can help with topic-level revision, while numerical quizzes and case studies provide additional application-based practice. Previous-year questions and mock tests can then be used to check overall preparation.
| Resource | How it helps |
|---|---|
| JAIIB AFM study material | Provides structured topic-wise preparation |
| AFM practice MCQs | Helps revise important concepts |
| AFM numerical quizzes | Improves calculation practice |
| AFM case study quizzes | Builds application skills |
| JAIIB previous-year papers | Helps understand question trends |
| JAIIB mock tests | Improves speed and time management |
Candidates can also explore Oliveboard’s JAIIB AFM study material, free quizzes, previous-year papers, and other JAIIB preparation resources to support their exam preparation.
How should you revise JAIIB AFM before the exam?
The final revision should focus on important concepts, formulas, frequently practised questions, and topics where mistakes are common. Candidates should avoid starting too many new topics at the last minute. Instead, they should use their marked questions, practice e-book, numerical questions, and mock-test analysis for focused revision.
- Revise important accounting concepts and formulas.
- Practise BRS, depreciation, ratios, valuation, and costing questions.
- Review taxation and GST concepts.
- Reattempt previously incorrect MCQs.
- Solve timed practice sets.
- Analyse mock-test mistakes.
- Keep the final revision focused on weak areas.
Download JAIIB Free E-Books
To make your JAIIB 2026 preparation easier, Oliveboard provides a collection of e-books and topper handwritten notes. These resources cover important topics in the Indian Economy and Banking, helping you revise key concepts quickly and effectively. You can download the PDFs and study at your own pace, anytime and anywhere.
| Notes | Link to Download PDF |
| 800+ Important JAIIB Questions | Download Free PDF |
| JAIIB Memory Based 2026 Paper | Download PDF |
| 750+ Solved Previous Year JAIIB Questions | Download PDF |
| Economic Concepts in Banking Topper Handwritten Notes | Economic Concepts in Banking for JAIIB |
| Indian Economic Architecture Topper Handwritten Notes | Indian Economic Architecture for JAIIB |
| Fundamentals of Economics | Fundamentals of Economics for JAIIB |
| Types of Economics and Basic Economic Problems | Types of Economics and Basic Economic Problems |
FAQs
Yes, numerical MCQs help candidates improve calculation speed and understand how formulas are applied.
BRS, depreciation, financial statements, ratio analysis, bond valuation, capital budgeting, cost of capital, taxation, and costing are useful areas for regular practice.
They help candidates revise concepts, identify weak areas, improve accuracy, and become familiar with different question types.
Working professionals can solve a small set of MCQs daily and use weekends for longer quizzes, numerical practice, and mock tests.
Yes, case study questions are useful for practising the application of accounting and financial management concepts.
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