Preparing for the JAIIB 2026 AFM exam can feel challenging due to its vast syllabus. However, the key to scoring well lies in understanding that certain topics are asked repeatedly over the years, even if the questions are framed differently.
By focusing on these high-frequency areas, professionals can prepare smarter and improve their scores with less effort. To support their preparation, we have curated a PDF of the most repetitive MCQs for JAIIB AFM 2026, covering topics from which questions are most frequently asked in the exam, along with a downloadable file for quick and effective revision.
Download JAIIB AFM MCQs PDF from most repetitive topics
This eBook offers 70 important MCQs for the JAIIB AFM paper, based on the latest pattern by the Indian Institute of Banking & Finance. The questions focus on high-scoring topics and include clear answers with simple explanations to help you understand concepts easily. You can download the PDF for quick and easy revision.
20 JAIIB AFM Questions from the Most Repetitive Topics
Practice these 20 questions from the JAIIB AFM paper, designed around the most repetitive topics as per the pattern set by the Indian Institute of Banking & Finance, to improve your accuracy and confidence.
1. A firm debited the purchase of a new delivery van (cost ₹8,00,000) to the ‘Repairs and Maintenance’ expense account. The trial balance tallied despite this error. Which type of error is this, and how will it affect the financial statements?
2. A company’s cash book shows a bank balance of ₹4,75,000 (Dr). Cheques issued but not presented: ₹62,000. Cheques deposited but not yet credited by bank: ₹45,000. Bank charges debited in pass book only: ₹3,500. Interest credited directly by bank (not in cash book): ₹8,500. What is the balance as per the pass book?
3. Which of the following best describes the purpose of adjusting entries at year-end?
4. Rahul & Co. found the following after its trial balance tallied: (i) ₹1,20,000 paid for machinery was debited to Wages account. (ii) Sales of ₹30,000 to Mr. X were posted to Mr. Y’s account. (iii) Purchases of ₹50,000 were omitted entirely from books. (iv) Discount allowed ₹5,000 was not posted to the Discount account. Which errors will NOT be revealed by the trial balance?
5. A firm purchased machinery costing ₹10,00,000 on 1st April. Depreciation is charged at 15% p.a. under the Written Down Value (WDV) method. What will be the book value of the asset at the end of Year 3?
6. Opening stock ₹3,00,000; Purchases ₹14,00,000; Carriage inward ₹60,000; Purchase returns ₹80,000; Closing stock ₹4,20,000; Abnormal loss (fire) ₹1,00,000. What is the correct Cost of Goods Sold (COGS)?
7. A company changes its depreciation method from Straight-Line Method (SLM) to Written Down Value (WDV) to better reflect the pattern of economic benefits. Under accounting standards, this should be treated as:
8. A suspense account had a debit balance of ₹6,000. The following errors were then discovered: (i) Wages account undercast by ₹2,000 (ii) Sales account overcast by ₹1,500 (iii) Purchase returns ₹2,500 completely omitted. After rectification, what is the balance in the suspense account?
9. Priya Traders discovered the following adjustments at year end: Outstanding rent ₹24,000. Prepaid insurance ₹9,000 (of 12 months, 3 months expired). Depreciation on furniture ₹15,000 not yet recorded. Interest accrued on investment ₹6,000 not yet received. What is the net impact on Net Profit after all adjustments?
10. When preparing a Bank Reconciliation Statement, a cheque deposited by the company but not yet credited by the bank will:
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11. A company forfeited 5,000 shares of ₹10 each on which ₹7 per share had been called up (₹3 on application, ₹4 on allotment). A shareholder holding 2,000 of these shares had paid only the application money. What amount is credited to the Forfeited Shares Account for these 2,000 shares?
12. The forfeited 2,000 shares (face value ₹10 each; ₹6,000 in Forfeited Shares A/c) from Q11 are reissued at ₹8 per share as fully paid up. What amount is transferred to Capital Reserve?
13. A company announces a bonus issue of shares by capitalising free reserves. Which of the following statements about a bonus issue is CORRECT?
14. A company has a paid-up equity capital of ₹50,00,000 (₹10 each). It declares a bonus issue of 1 share for every 5 shares held. What is the amount to be transferred from reserves to paid-up capital?
15. Star Ltd. issued 10,000 equity shares of ₹10 each at ₹15 (premium ₹5). Calls: Application ₹3, Allotment ₹7 (including ₹5 premium), First Call ₹5. Mr. Raj, holding 500 shares, failed to pay the first call. His shares were forfeited and later reissued to Ms. Seema at ₹12 per share as fully paid. What is the amount credited to Capital Reserve after reissue?
16. According to the Capital Asset Pricing Model (CAPM), which component specifically captures the systematic (market) risk of a security?
17. Using CAPM: Risk-free rate = 7%, Expected market return = 13%, Beta = 1.4. What is the required rate of return (cost of equity)?
18. A company’s shares have a current market price of ₹120. It paid a dividend of ₹6 per share last year, and dividends are expected to grow at 8% p.a. perpetually. What is the cost of equity using the Dividend Growth Model?
19. Metro Finance Ltd. is evaluating Project Alpha: Initial Investment ₹20,00,000. Annual Cash Inflows for 5 years: ₹6,00,000. Cost of Capital: 12%. PV Annuity Factor (12%, 5 yrs): 3.605. IRR computed to be 14.5%. Which decision is theoretically most appropriate from a wealth-maximisation perspective?
20. A project with an initial investment of ₹15,00,000 generates uneven cash inflows: Year 1: ₹4,00,000; Year 2: ₹5,50,000; Year 3: ₹6,00,000; Year 4: ₹5,00,000. Discount factors at 10%: 0.909, 0.826, 0.751, 0.683. What is the NPV?
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What are the common repetitive topics in JAIIB AFM paper?
The JAIIB AFM exam consistently repeats certain topics every year. These topics form the core of financial management, banking practices, and regulatory frameworks. Focusing on these areas ensures that you cover most of the questions that appear in the exam. Candidates who revise these topics thoroughly often score well.
- Financial Management Basics – Principles, objectives, and key functions.
- Ratio Analysis – Liquidity, profitability, solvency, and leverage ratios.
- Capital Budgeting – NPV, IRR, Payback Period, and project evaluation methods.
- Funds Flow & Cash Flow Statements – Preparation, analysis, and interpretation.
- Working Capital Management – Components, optimization, and management techniques.
- Banking & Financial Institutions – RBI guidelines, credit appraisal, regulatory frameworks.
- Costing & Budgeting – Standard costing, variance analysis, budget preparation.
- Accounting Standards & Recent Updates – Key notifications, regulatory changes, circulars.
- Investment Appraisal & Project Finance – Evaluation of investments, loan appraisal, feasibility studies.
- Financial Markets Basics – Money market, capital market, and instruments.
Download JAIIB important MCQs Free PDF
Also, download the JAIIB important MCQs free PDF here:
| Study Material | Study Material |
| JAIIB IE and IFS Important Questions PDF | JAIIB PPB Important Questions PDF |
| JAIIB AFM Important Questions PDF | JAIIB RBWM Important Questions PDF |
What types of questions are mostly asked in JAIIB AFM exam?
Most questions in JAIIB AFM are conceptual, testing your understanding of financial principles and banking practices. Numerical questions are fewer and usually cover basic calculations. Scenario-based and application questions are also common, requiring interpretation and practical decision-making rather than rote learning.
| Question Type | Weightage Level | Key Topics Covered |
| Concept-based MCQs | Very High | Principles of finance, accounting standards, capital budgeting |
| Numerical MCQs | Moderate | Ratio analysis, cash flow, working capital, NPV, IRR |
| Scenario-based / Application | High | Project evaluation, loan appraisal, real banking cases |
| Regulatory / Update-based | Medium | Guidelines, notifications, circulars by Reserve Bank of India |
| True/False / Assertion-Reasoning | Low to Moderate | Concept-based statements |
Also Check:
| Study Plan | Study Plan |
| JAIIB IE And IFS Study Plan | JAIIB PPB Study Plan |
| JAIIB AFM Study Plan | JAIIB RBWM Study Plan |
What is the JAIIB AFM (Accounting and Financial Management) syllabus 2026?
Paper 3 of JAIIB is Accounting and Financial Management. The paper consists of a total of 4 modules as listed below:
- Accounting Principles and Processes
- Financial Statement and Core Banking Systems
- Financial Management
- Taxation and Fundamentals of Costing.
Also Check,
| Related Topics | Link |
| 50 Most Repetitive JAIIB RBWM MCQs | Click here to Check |
| 50 Most Repetitive JAIIB PPB MCQs | Click here to Check |
| 50 Most Repetitive JAIIB IE & IFS MCQs | Click here to Check |
FAQs
Financial management basics, ratio analysis, capital budgeting, and working capital.
Yes, but only 20–25% of questions, mainly ratios, cash flow, and NPV/IRR.
Yes, around 70–75% of the paper is conceptual.
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