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NABARD Grade A Accounting & Finance Questions
Practise accounting & finance (finance) for the NABARD Assistant Manager (Grade A) Examination: 10 multiple-choice questions, each with the correct answer and a worked explanation. Click an option to check it, or “New questions” for another set.
Accounting & Finance practice
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Q1.Depreciation is recorded to:
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Answer: B — Allocate an asset’s cost over its useful life
Depreciation matches the cost of a long-lived asset to the periods it benefits.
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Q2.Find the present value of ₹1,700 received at the end of each year for 10 years at 8%.
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Answer: A — ₹11,407
PV of an ordinary annuity = PMT × [1 − (1 + r)⁻ⁿ]/r = 1,700 × 6.7101 = ₹11,407.
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Q3.Working capital is:
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Answer: A — Current assets − current liabilities
Working capital = current assets − current liabilities.
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Q4.₹6,000 is invested at 8% compounded annually. What is it worth after 10 years?
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Answer: C — ₹12,954
FV = PV(1 + r)ⁿ = 6,000 × 1.08^10 = ₹12,954.
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Q5.Diversification mainly reduces:
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Answer: D — Unsystematic (specific) risk
Holding many assets reduces company-specific risk, not market risk.
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Q6.Find the compound interest on ₹18,000 at 10% per annum for 2 years, compounded annually.
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Answer: A — ₹3,780
A = P(1 + R/100)^T = 18,000 × 1.10^2 = 21,780; CI = A − P = ₹3,780.
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Q7.Which statement shows a company’s cash inflows and outflows from operating, investing and financing activities?
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Answer: A — Cash flow statement
The cash flow statement groups cash flows into three activities.
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Q8.₹1,000 is invested at 4% compounded annually. What is it worth after 4 years?
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Answer: C — ₹1,170
FV = PV(1 + r)ⁿ = 1,000 × 1.04^4 = ₹1,170.
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Q9.A debit entry increases:
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Answer: B — Assets and expenses
In double entry, debits increase assets and expenses; credits increase liabilities, equity and revenue.
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Q10.Find the compound interest on ₹30,000 at 10% per annum for 2 years, compounded annually.
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Answer: C — ₹6,300
A = P(1 + R/100)^T = 30,000 × 1.10^2 = 36,300; CI = A − P = ₹6,300.
How to approach accounting & finance questions
Master the accounting equation, the three financial statements and time value of money: FV = PV(1 + r)ⁿ, PV of an annuity = PMT × [1 − (1 + r)⁻ⁿ]/r. Ratios link the statements.
About NABARD Grade A
NABARD Assistant Manager (Grade A) Examination — conducted by National Bank for Agriculture and Rural Development (NABARD). Recruits Assistant Managers for India’s apex development bank for agriculture and rural finance.
Original practice questions written for this site in the style and difficulty of each exam’s syllabus. They are not past papers and the site is not affiliated with any exam body. Exam patterns, marking schemes and syllabi change — always check the latest official notification.
NABARD Grade A practice topics
| Topic | Section | Question source |
|---|---|---|
| Economy & Banking Awareness | General awareness | Question bank |
| Accounting & Finance | Finance | Calculated + question bank |
| Data Interpretation | Data interpretation | Calculated (new numbers every set) |
| Logical Reasoning | Reasoning | Calculated (new numbers every set) |
| English Grammar | English | Question bank |