In case of classification of advance as doubtful assets, provision is required by the bank for
unsecured portion
Correct
Incorrect
Question 2 of 30
2. Question
1 points
Category: Auditing & Assurance
In case of classification of advance as doubtful assets (up to one year), provision is required by the
bank for secured portion
Correct
Incorrect
Question 3 of 30
3. Question
1 points
Category: Auditing & Assurance
In case of classification of advance as doubtful assets (more than one year but up to 3 year),
provision is required by the bank for secured portion
Correct
Incorrect
Question 4 of 30
4. Question
1 points
Category: Auditing & Assurance
In case of classification of advance as doubtful assets (more than 3 years), provision is required by
the bank for secured portion
Correct
Incorrect
Question 5 of 30
5. Question
1 points
Category: Auditing & Assurance
In case of classification of advance as loss assets, provision is required by the bank
Correct
Incorrect
Question 6 of 30
6. Question
1 points
Category: Auditing & Assurance
___________________ refers to the security offered by the borrower for bank finance or the one against
which credit has been extended by the bank.
Correct
Incorrect
Question 7 of 30
7. Question
1 points
Category: Auditing & Assurance
___________________ is an additional security. Security can be in any form i.e. tangible or intangible asset,
movable or immovable asset
Correct
Incorrect
Question 8 of 30
8. Question
1 points
Category: Auditing & Assurance
Most common types of securities accepted by banks are the following
Correct
Incorrect
Question 9 of 30
9. Question
1 points
Category: Auditing & Assurance
Which of the following is not type of mortgage
Correct
Incorrect
Question 10 of 30
10. Question
1 points
Category: Auditing & Assurance
_____________________ can be effected by a registered instrument called the “Mortgage Deed” signed by
the mortgagor
Correct
Incorrect
Question 11 of 30
11. Question
1 points
Category: Auditing & Assurance
____________________ is effected by a mere delivery of title deeds or other documents of title with intent
to create security thereof
Correct
Incorrect
Question 12 of 30
12. Question
1 points
Category: Auditing & Assurance
_____________________ involves bailment or delivery of goods by the borrower to the lending bank, with
the intention of creating a charge thereon as security for the advance
Correct
Incorrect
Question 13 of 30
13. Question
1 points
Category: Auditing & Assurance
_____________________ is the creation of an equitable charge, which is created in favour of the lending
bank by execution of agreement in respect of movable securities belonging to the borrower
Correct
Incorrect
Question 14 of 30
14. Question
1 points
Category: Auditing & Assurance
________________ is a transfer of an existing or future debt, right or property belonging to a person in
favour of another person
Correct
Incorrect
Question 15 of 30
15. Question
1 points
Category: Auditing & Assurance
___________________ is a statutory right of a creditor to adjust, wholly or partly, the debit balance in the
debtor’s account against any credit balance lying in another account of the debtor.
Correct
Incorrect
Question 16 of 30
16. Question
1 points
Category: Auditing & Assurance
___________________ is a creation of legal charge with consent of the owner, which gives lender a legal
right to seize and dispose/ liquidate the asset under lease.
Correct
Incorrect
Question 17 of 30
17. Question
1 points
Category: Auditing & Assurance
An advance will be classified as NPA, if
Correct
Incorrect
Question 18 of 30
18. Question
1 points
Category: Auditing & Assurance
An account should be treated as ‘Out-of-Order’ if
Correct
Incorrect
Question 19 of 30
19. Question
1 points
Category: Auditing & Assurance
Where it appears that an account has inherent weakness and few credits near balance sheet tries to
make it regular, the account should be classified as __________________
Correct
Incorrect
Question 20 of 30
20. Question
1 points
Category: Auditing & Assurance
Which of the following statement is incorrect w.r.t classification of advance as NPA
Correct
Incorrect
Question 21 of 30
21. Question
1 points
Category: Auditing & Assurance
The credit facilities backed by __________________ through overdue, will be classified as NPA only when
the ___________________ repudiates its guarantee when invoked
Correct
Incorrect
Question 22 of 30
22. Question
1 points
Category: Auditing & Assurance
Loan granted for short duration crop shall be classified as NPA if interest and/ or installments of
principal is overdue for
Correct
Incorrect
Question 23 of 30
23. Question
1 points
Category: Auditing & Assurance
Loan granted for long duration crop shall be classified as NPA if interest and/ or installments of
principal is overdue for
Correct
Incorrect
Question 24 of 30
24. Question
1 points
Category: Auditing & Assurance
Credit card account shall be classified as NPA, if __________________ amount due, as mentioned in the
credit card statement is not paid fully within ________________ days from next statement date
Correct
Incorrect
Question 25 of 30
25. Question
1 points
Category: Auditing & Assurance
Which of the following is not exception to norms for classification of assets as NPA
Correct
Incorrect
Question 26 of 30
26. Question
1 points
Category: Auditing & Assurance
Banks should recognize income from NPA
Correct
Incorrect
Question 27 of 30
27. Question
1 points
Category: Auditing & Assurance
Interest income from advances through overdue but not classifies as NPA as secured against Term
Deposits, NSC, KVP, IVP may be recognize
Correct
Incorrect
Question 28 of 30
28. Question
1 points
Category: Auditing & Assurance
Interest income from advances through overdue but not classifies as NPA as secured against
guarantee of the Central Government, recognized as
Correct
Incorrect
Question 29 of 30
29. Question
1 points
Category: Auditing & Assurance
The auditor can obtain sufficient appropriate audit evidence about advances by study and
evaluation of the internal controls relating to advances, and by:
Correct
Incorrect
Question 30 of 30
30. Question
1 points
Category: Auditing & Assurance
If a loan/ advance is treated as NPA for the first time, interest accrued which had not been realized
but credited to the income account should be reversed by transfer to a separate account called
________________
Correct
Incorrect
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