Preparing for the JAIIB 2026 AFM exam becomes easier when candidates focus on the topics that are frequently asked in the exam. 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 includes 70 important MCQs for the JAIIB AFM paper, based on the latest exam pattern of the Indian Institute of Banking & Finance (IIBF). It covers key topics with correct answers and simple explanations to help you understand concepts better. Download the PDF for quick revision and effective exam preparation.
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. [Conceptual] 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 cash book shows a favourable bank balance of ₹3,00,000. Cheques issued but not yet presented are ₹40,000 and cheques deposited but not yet credited are ₹25,000. Ignoring other items, what is the balance as per pass book?
3. [Conceptual] Which of the following best describes the purpose of adjusting entries at year-end?
4. Which of the following errors will NOT be disclosed by a Trial Balance? (i) Complete omission of a transaction. (ii) Posting to the wrong personal account on the correct side for the correct amount. (iii) Purchase of machinery debited to Purchases Account. (iv) Posting ₹8,000 to the debit of an account instead of ₹800.
5. [Numerical] 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 ₹2,50,000; Purchases ₹12,00,000; Purchase Returns ₹50,000; Carriage Inward ₹40,000; Closing Stock ₹3,20,000. What is Cost of Goods Sold?
7. [Conceptual] 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 Trial Balance showed a Suspense Account debit balance of ₹4,000. Later it was found that Sales Account had been overcast by ₹1,500 and Wages Account had been undercast by ₹2,500. What is the balance in Suspense Account after rectification?
9. At year-end, a business has outstanding salary of ₹30,000, prepaid insurance of ₹8,000, depreciation of ₹12,000, and accrued interest income of ₹5,000. What is the net effect of these adjustments on profit?
10. [Conceptual] 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. [Numerical] 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. [Numerical] 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. [Conceptual] A company announces a bonus issue of shares by capitalising free reserves. Which of the following statements about a bonus issue is CORRECT?
14. [Numerical] 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. A company forfeits 1,000 equity shares of ₹10 each, ₹8 called up. The shareholder had paid ₹5 per share. The shares are reissued as fully paid at ₹9 per share. How much is transferred to Capital Reserve?
16. [Conceptual] According to the Capital Asset Pricing Model (CAPM), which component specifically captures the systematic (market) risk of a security?
17. [Numerical] Using CAPM: Risk-free rate = 7%, Expected market return = 13%, Beta = 1.4. What is the required rate of return (cost of equity)?
18. [Numerical] 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. [Case Study] CASE: 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 • Management also computed IRR to be 14.5% Which decision is theoretically most appropriate from a wealthmaximisation perspective?
20. A project requires an initial investment of ₹10,00,000 and produces present values of cash inflows totalling ₹11,40,000. What is its NPV and the decision under the NPV rule?
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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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