JAIIB · Accounting & Financial Management · Module B — Preparation of Financial Statements
JAIIB AFM Unit 15 — Company Accounts II: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 2 November 2026 · Paper 3 of the November 2026 cycle (28 November 2026)
This page is a free slice of our JAIIB AFM question bank for Unit 15 — Company Accounts II (Module B — Preparation of Financial Statements). The Mock Centre holds 99 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
AFM · Module B99 MCQs in the Mock Centre5 free belowPaper on 28 November 2026
Key facts examiners test from this unit
Section 128 = books of account; Section 129 = true & fair + Ind AS + Schedule III; Section 133 = notified standards; Section 135 = CSR.
Schedule III disclosures are IN ADDITION to (not substitution of) AS; notes cross-referenced; rounding by turnover.
Current = realised/settled within 12 months or the operating cycle (assume 12 months if unidentifiable).
Law update, November 2026. From 2021-22 (amendment of 24 March 2021), Division I requires an ageing schedule of trade receivables — less than 6 months, 6 months–1 year, 1–2, 2–3 and more than 3 years — split into undisputed and disputed, considered good and doubtful.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
For a SOLE PROPRIETORSHIP, preparation of final accounts is:
Why (c): For sole proprietorships and partnerships, final accounts are DESIRABLE but not compulsory by law. Only for LIMITED COMPANIES is it mandatory under Sections 128 and 129 of Companies Act 2013.
Question 2 of 5
'Long-term Provisions' under Schedule III primarily includes:
Why (b): Long-term provisions = provision for employee benefits (e.g., gratuity) as a primary component. Taxation provision is short-term. Provision for doubtful debts is shown under the relevant asset head.
Question 3 of 5
Which of these is a TANGIBLE asset per Schedule III?
Why (d): OFFICE EQUIPMENT is a tangible (physical) asset. Goodwill, computer software, and mining rights are all INTANGIBLE assets. Tangible = physically touchable.
Question 4 of 5
'Total Revenue' in Schedule III P&L is:
Why (b): Line item III: TOTAL REVENUE (I + II) = Revenue from Operations + Other Income. This is gross income before any expense deductions.
Question 5 of 5
Under Ind AS-110, an entity that CONTROLS one or more other entities is called:
Why (c): The PARENT controls other entities. The controlled entity = SUBSIDIARY. Associate = significant influence but not control.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
Section 128
Section 129
Keep the books vs prepare true-and-fair statements
Schedule III
Ind AS-1
Prescribed format vs no prescribed format (flexibility)
Practise all 99 questions on Unit 15. The free demo opens a slice of every subject with the same explanations; the AFM Online-only pass unlocks all 1,600+ AFM questions, the full and module mocks, Smart Revision and the Readiness Score for 18 months (₹1,299). Not sure where you stand? Sit the free 120-question mock first (all four papers, questions drawn from pages like this one, real exam screen).
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of November 2026; verify from official sources before relying on them in practice.
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