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JAIIB · Accounting & Financial Management · Module B — Preparation of Financial Statements

JAIIB AFM Unit 18 — Core Banking Systems: Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 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 18 — Core Banking Systems (Module B — Preparation of Financial Statements). The Mock Centre holds 36 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 B36 MCQs in the Mock Centre5 free belowPaper on 28 November 2026

Key facts examiners test from this unit

  1. Computerised accounting = accounting done through a computer SYSTEM (hardware + software), not merely storing records digitally; digital computers do the accounting work.
  2. Software vs hardware: instructions/programs (Tally, Finacle, BaNCS) vs physical components; a database = pre-arranged compilation of related data records (sales register = a database).
  3. Features: speed, accuracy, multi-user simultaneous operation, automatic posting/balancing, instant reports; the two stated differentiators vs manual: SPEED and ACCURACY.

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
The physical components of a computer are called:
Why (b): HARDWARE = the physical components; software = the instructions driving them.
Question 2 of 5
A disadvantage of computerised accounting is:
Why (b): VIRUSES — with breakdowns, hacking and power/system dependence — are the stated disadvantages.
Question 3 of 5
Which is correct about ATMs?
Why (b): ATMs serve 24×365 — cash, transfers, balance enquiries — with every transaction posted automatically by the switch/CBS.
Question 4 of 5
Information security is the responsibility of:
Why (c): Information security is EVERY employee's responsibility — each user guards credentials, terminals and data.
Question 5 of 5
Which is correct about passwords?
Why (b): NEVER share credentials — not even with IT staff; sharing destroys accountability and the audit trail.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
SoftwareHardwarePrograms/instructions vs physical components
TallyFinacle/BaNCS/FlexcubeGeneral accounting package vs Core Banking Solutions
Practise all 36 questions on Unit 18. The free demo opens a slice of every subject with the same explanations; the AFM Online-only pass unlocks all 1,681 AFM questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Take the free test Open the free demo

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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 September 2026; verify from official sources before relying on them in practice.