Accounting & Financial Management for Bankers
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Practice numerical and conceptual questions for AFM — covering accounting principles, financial statements, capital budgeting (NPV, IRR), ratio analysis, taxation, and costing. Includes calculation-based hard questions matching the real exam format.
| Difficulty | Questions | Marks Each | Total Marks |
|---|---|---|---|
| Easy | 50 | 0.5 | 25 |
| Medium | 25 | 1 | 25 |
| Hard (Numerical) | 25 | 2 | 50 |
| Total | 100 | — | 100 |
Q1. A project requires an initial investment of ₹5,00,000 and generates cash flows of ₹1,50,000 per year for 5 years. At a discount rate of 10%, the NPV is approximately:
Explanation: NPV = -5,00,000 + 1,50,000 × PVIFA(10%, 5 years). PVIFA(10%, 5) = 3.7908. NPV = -5,00,000 + (1,50,000 × 3.7908) = -5,00,000 + 5,68,618 = ₹68,618. Since NPV > 0, the project is acceptable.
Q2. If Current Ratio is 2.5 and Quick Ratio is 1.5, and Current Liabilities are ₹2,00,000, what is the value of Inventory?
Explanation: Current Assets = 2.5 × 2,00,000 = ₹5,00,000. Quick Assets = 1.5 × 2,00,000 = ₹3,00,000. Inventory = Current Assets - Quick Assets = 5,00,000 - 3,00,000 = ₹2,00,000.
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Yes. Unlike other papers where hard questions are statement-based, AFM hard questions (2 marks each) require actual calculations — NPV, IRR, ratios, depreciation, break-even, etc.
Yes. Every numerical question includes a detailed step-by-step solution showing the formula used, intermediate calculations, and final answer.
Yes, IIBF provides an on-screen calculator during the exam. Our practice interface simulates the same environment.
Currently 535+ questions covering all 4 modules with a mix of conceptual and numerical problems.
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