JAIIB Paper 3 Module B Quiz 8

The unexpired portion of insurance is a prepayment representing future coverage and is generally shown as an asset, while the current-period portion is expensed.

A complete omission leaves both debit and credit unrecorded, so the trial balance may still agree. Errors that create unequal debit and credit totals generally cause a difference.

Premium per share = issue price − face value = ₹13 − ₹10 = ₹3.

Schedule III to the Companies Act, 2013 prescribes formats and disclosures for company financial statements, subject to the applicable division and reporting framework.

A transaction such as acquiring an asset by issuing shares does not involve cash or cash equivalents. Material non-cash investing and financing transactions are excluded from cash flow totals and disclosed separately.

Interest paid or payable on customer deposits is a funding cost and is generally recognised as interest expense in the bank’s profit and loss account.

Ind AS applicability and implementation for banks must be determined from the current notified framework and RBI/government directions. It is unsafe to assume that all banks have adopted it identically or that Ind AS equals US GAAP.

Disaster recovery planning defines how systems and data will be restored after disruption. Recovery time and recovery point objectives guide preparedness and testing.

Data integrity concerns accuracy, completeness and protection against improper modification or destruction. Access controls, validation, audit trails and backups help maintain integrity.

If no cash or cash equivalents move, the acquisition and financing are non-cash transactions. Material transactions are excluded from cash flow totals and disclosed separately as required.

CBS often interfaces with payment systems, channels and accounting modules so transactions can be processed and posted consistently. Interfaces require monitoring and reconciliation.

Depreciation is a non-cash expense that reduced profit, so it is added back in the indirect-method reconciliation. Working-capital increases such as receivables and inventory are generally deducted.

The balance sheet presents a bank’s financial position at a reporting date, including assets such as loans and investments and liabilities such as deposits and borrowings, plus equity.

The trial balance is a starting point for final accounts. Adjustments and classification are still required, and agreement does not prove that all transactions are valid or error-free.

Cash proceeds from disposal of long-term investments are generally investing inflows. Share issues and borrowings are financing inflows; customer receipts are operating inflows.

Transaction logs provide a record of events and changes that can support audit, troubleshooting and investigation. Logs need protection and monitoring to remain reliable.

Equity total = assets − liabilities = ₹25 lakh − ₹16 lakh = ₹9 lakh. Other equity/reserves = total equity ₹9 lakh − share capital ₹5 lakh = ₹4 lakh.

Once a dividend is validly declared and recognised as payable under applicable rules, an unpaid amount is generally a liability until settlement.

Issued capital is the portion of authorised capital issued to shareholders. It may differ from subscribed and paid-up capital depending on applications, allotment and amounts paid.

Controlled patching helps address vulnerabilities while testing and approvals reduce the chance of outages or errors. Change management and recovery arrangements remain important.