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100+ Free JAIIB AFM Practice Questions

Pass your IIBF JAIIB Paper 3: Accounting and Financial Management for Bankers (India) exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: JAIIB AFM Exam

~100 MCQs / 100 marks

Official JAIIB paper size per subject (2026 rules)

IIBF JAIIB Rules & Syllabus 2026 PDF

50/100

Minimum passing marks per paper

IIBF JAIIB Rules & Syllabus 2026 PDF

2 hours

Examination duration per paper; no negative marking

IIBF JAIIB Rules & Syllabus 2026 PDF

₹4,000 / ₹1,300

First attempt / subsequent attempt fee per paper (+ taxes)

IIBF JAIIB Rules & Syllabus 2026 PDF

4 modules

Official AFM syllabus structure (A–D)

IIBF JAIIB Rules & Syllabus 2026 PDF

5 attempts / 3 years

Time limit to complete all JAIIB papers with credit retention for passed subjects

IIBF JAIIB Rules & Syllabus 2026 PDF

JAIIB AFM (2026): ~100 MCQs for 100 marks in 2 hours, English/Hindi, online, no negative marking; pass at 50/100 per paper. Fees ₹4,000 first attempt / ₹1,300 later attempts per paper + taxes. IIBF members with 12th pass eligibility. Free bank: 100 practice MCQs across four official modules.

Sample JAIIB AFM Practice Questions

Try these sample questions to test your JAIIB AFM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the double-entry system of bookkeeping, every debit entry must have a corresponding:
A.Credit entry of equal amount
B.Journal voucher number only
C.Cash receipt entry
D.Contra entry in the same ledger
Explanation: The double-entry system rests on the accounting equation: every transaction affects at least two accounts with equal debit and credit amounts, preserving the equality of assets and liabilities plus capital.
2The going concern assumption in accounting implies that the enterprise:
A.Will liquidate within one year
B.Will continue operations for the foreseeable future
C.Must distribute all profits annually
D.Cannot raise long-term borrowings
Explanation: Going concern assumes the entity will continue operating in the foreseeable future, justifying carrying assets at historical cost rather than forced liquidation values.
3Revenue is generally recognised under accrual accounting when:
A.Cash is received from the customer
B.Performance obligations are satisfied and amount is measurable
C.Purchase order is placed
D.Goods are ordered from supplier
Explanation: Accrual-based revenue recognition (including Ind AS 115 principles) records income when control of goods/services transfers or performance obligations are met, not merely when cash is collected.
4The principle of conservatism (prudence) in accounting typically requires:
A.Anticipating all possible profits immediately
B.Not recognising anticipated losses and gains equally
C.Ignoring contingent liabilities
D.Valuing inventory above market price
Explanation: Prudence cautions against overstating assets/income: anticipated losses may be provided for, while anticipated gains are not recognised until realised, preventing overly optimistic financial statements.
5Indian Accounting Standards (Ind AS) in India are converged with which international framework?
A.US GAAP only, with no IFRS linkage
B.IFRS issued by the IASB
C.Japanese GAAP exclusively
D.RBI Master Directions as a complete substitute for accounting standards
Explanation: Ind AS are Indian converged standards largely aligned with IFRS issued by the International Accounting Standards Board, with certain carve-outs for Indian regulatory context.
6A bank reconciliation statement primarily reconciles:
A.Cash book balance with passbook/bank statement balance
B.Trial balance with balance sheet
C.Gross NPA with net NPA
D.Interest income with fee income
Explanation: Bank reconciliation explains timing and recording differences—unpresented cheques, bank charges, direct credits—between the entity’s cash book and the bank statement balance.
7If cheques issued but not yet presented appear in the bank reconciliation, they are:
A.Added to the bank statement balance
B.Deducted from the cash book balance
C.Deducted from the bank statement balance (or added to cash book balance)
D.Ignored until presented
Explanation: Unpresented cheques reduce the bank’s liability but are already credited in the cash book; reconciling to the passbook requires deducting them from the bank statement balance.
8A trial balance is prepared to:
A.Prove arithmetical accuracy of ledger postings
B.Determine net profit directly
C.Replace the balance sheet
D.Calculate tax liability
Explanation: A trial balance lists ledger balances where total debits should equal total credits, helping detect arithmetic posting errors before final accounts are prepared.
9Wages paid for installation of a new machine should be treated as:
A.Revenue expenditure
B.Capital expenditure
C.Deferred revenue expenditure
D.Operating expense in P&L only
Explanation: Costs directly attributable to bringing a fixed asset to working condition—including installation wages—are capitalised as part of the asset cost, not expensed immediately.
10Under the straight-line method, annual depreciation on an asset costing ₹10,00,000 with zero scrap value and 10-year life is:
A.₹50,000
B.₹1,00,000
C.₹1,10,000
D.₹2,00,000
Explanation: Straight-line depreciation = (Cost − Scrap value) ÷ Useful life = ₹10,00,000 ÷ 10 = ₹1,00,000 per year.

About the JAIIB AFM Exam

JAIIB Paper 3 (Accounting and Financial Management for Bankers) tests accounting principles, financial statements, core banking systems, financial management, taxation and costing knowledge essential for day-to-day banking operations. The 2026 examination is online MCQ with no negative marking.

Assessment

Paper III of the four-paper JAIIB flagship diploma. Online MCQ examination in English or Hindi. Scheduled on dedicated dates (e.g., May 10 and November 28, 2026 sessions per IIBF calendar). Candidates register and pay per attempt.

Time Limit

2 hours

Passing Score

50 out of 100 per paper (or minimum 45 in each paper with 50% aggregate in a single attempt)

Exam Fee

₹4,000 first attempt / ₹1,300 per subsequent attempt per paper (+ convenience charges & taxes) (Indian Institute of Banking & Finance (IIBF))

JAIIB AFM Exam Content Outline

25%

Module A — Accounting Principles and Processes

Ind AS/GAAP, double entry, subsidiary books, BRS, trial balance, errors, depreciation, capital vs revenue, bills of exchange, bank audit.

25%

Module B — Financial Statements and Core Banking Systems

Balance sheet equation, final accounts, company accounts, cash/funds flow, banking company accounts, CBS and computerised accounting.

25%

Module C — Financial Management

Overview, ratio analysis, financial mathematics (interest, YTM, forex), capital structure, investment decisions, leasing, working capital, derivatives.

25%

Module D — Taxation and Fundamentals of Costing

Income tax/TDS/deferred tax, GST, cost and management accounting, costing methods, standard and marginal costing, budgets.

How to Pass the JAIIB AFM Exam

What You Need to Know

  • Passing score: 50 out of 100 per paper (or minimum 45 in each paper with 50% aggregate in a single attempt)
  • Assessment: Paper III of the four-paper JAIIB flagship diploma. Online MCQ examination in English or Hindi. Scheduled on dedicated dates (e.g., May 10 and November 28, 2026 sessions per IIBF calendar). Candidates register and pay per attempt.
  • Time limit: 2 hours
  • Exam fee: ₹4,000 first attempt / ₹1,300 per subsequent attempt per paper (+ convenience charges & taxes)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

JAIIB AFM Study Tips from Top Performers

1Work through IIBF courseware Module A thoroughly — BRS, trial balance and depreciation calculations are high-frequency.
2Practice balance sheet equation and final-account adjustments before tackling banking company account formats.
3Drill ratio formulas, simple/compound interest, PV/NPV and break-even — Module C rewards calculation speed.
4Revise TDS basics, GST (IGST/CGST/SGST/ITC) and marginal costing contribution/break-even for Module D.
5Use timed 100-question mocks at 2 hours to match official pacing (~1.2 minutes per question).
6Remember JAIIB has no negative marking — attempt all questions but verify calculation-heavy items carefully.

Frequently Asked Questions

What is JAIIB Paper 3 AFM?

It is the third paper of IIBF's JAIIB flagship diploma covering Accounting and Financial Management for Bankers — accounting processes, financial statements, CBS, financial management, taxation and costing.

What is the JAIIB AFM exam pattern?

Per IIBF JAIIB Rules & Syllabus 2026: approximately 100 objective MCQs for 100 marks in 2 hours, online mode, no negative marking. Medium is English or Hindi, chosen at registration.

What is the passing score for JAIIB AFM?

Minimum 50 marks out of 100 in the paper. Alternatively, at least 45 marks in each subject with an aggregate of 50% across all papers in a single attempt completes the examination.

How much does the JAIIB exam cost?

First attempt fee is ₹4,000 per paper; 2nd through 5th attempts are ₹1,300 each, plus convenience charges and applicable taxes. Candidates register separately for every attempt.

Who is eligible for JAIIB?

Only ordinary members of IIBF who have passed the 12th standard or equivalent may appear. Employers must be institutional members for staff membership.

Are these official IIBF exam questions?

No. These are original OpenExamPrep practice questions aligned to the official 2026 AFM syllabus modules. IIBF does not release its proprietary MCQ bank.