Ques:- What do you understand by the term assets and liabilities?
Right Answer:
Assets are resources owned by a company that have economic value and can provide future benefits, while liabilities are obligations or debts that the company owes to others, which require future outflows of resources.
Assets are resources owned by a company that have economic value and can provide future benefits, while liabilities are obligations or debts that the company owes to others, which require future outflows of resources.
Ques:- If selling price is fixed 25% above the cost, the Gross Profit ratio is?
Asked In :-
SBI Life Insurance, A S R, Meezan Bank, trafigura, curriculum associates, tpg sixth street partners, topp business solutions, itam,
Right Answer:
The Gross Profit ratio is 20%.
The Gross Profit ratio is 20%.
Ques:- What are the rules of Debit and Credit?
Right Answer:
The rules of Debit and Credit are:
1. **Assets**: Debit increases, Credit decreases.
2. **Liabilities**: Debit decreases, Credit increases.
3. **Equity**: Debit decreases, Credit increases.
4. **Revenue**: Debit decreases, Credit increases.
5. **Expenses**: Debit increases, Credit decreases.
The rules of Debit and Credit are:
1. **Assets**: Debit increases, Credit decreases.
2. **Liabilities**: Debit decreases, Credit increases.
3. **Equity**: Debit decreases, Credit increases.
4. **Revenue**: Debit decreases, Credit increases.
5. **Expenses**: Debit increases, Credit decreases.
Ques:- What is overhead in accounting terms?
Asked In :-
Divya Portfolio, mecon limited, india, lb finance plc, sahni natarajan & bahl, kpmg philippines,
Right Answer:
Overhead in accounting refers to the ongoing expenses of operating a business that are not directly tied to producing a product or service, such as rent, utilities, and salaries of non-production staff.
Overhead in accounting refers to the ongoing expenses of operating a business that are not directly tied to producing a product or service, such as rent, utilities, and salaries of non-production staff.
Ques:- Define Interest booking?
Right Answer:
Interest booking refers to the process of recording interest income or expense in the accounting records for a specific period, ensuring that it reflects the financial performance accurately in the financial statements.
Interest booking refers to the process of recording interest income or expense in the accounting records for a specific period, ensuring that it reflects the financial performance accurately in the financial statements.
Ques:- List out the different branches of accounting?
Right Answer:
1. Financial Accounting
2. Managerial Accounting
3. Cost Accounting
4. Tax Accounting
5. Auditing
6. Forensic Accounting
7. Governmental Accounting
8. Nonprofit Accounting
1. Financial Accounting
2. Managerial Accounting
3. Cost Accounting
4. Tax Accounting
5. Auditing
6. Forensic Accounting
7. Governmental Accounting
8. Nonprofit Accounting
Ques:- Tell the difference between book keeping and accounting?
Asked In :-
Mako Trading Group, blackhawk network, federal reserve bank of dallas, avendus capital, fis, otn, clearcover,
Right Answer:
Bookkeeping involves the recording of financial transactions, while accounting encompasses the broader process of summarizing, analyzing, and reporting financial data.
Bookkeeping involves the recording of financial transactions, while accounting encompasses the broader process of summarizing, analyzing, and reporting financial data.
Ques:- True or False: Fixed budget is of much help in the fixation of selling price or calculation of tender price?
Asked In :-
BPSC, Britannia, Adaptive Financial Consulting, Kiran Foreign Trade, asia united bank, nucor steel,
Right Answer:
False.
False.
Ques:- Determine B.E.P if Sales is Rs 1,00,000, Variable cost is Rs 50,000 and Profit is Rs 20,000.
Asked In :-
tata chemicals, crowe horwath malaysia,
Right Answer:
B.E.P (Break-Even Point) = Fixed Costs / Contribution Margin per unit.
First, calculate Fixed Costs:
Profit = Sales - Variable Costs - Fixed Costs
20,000 = 1,00,000 - 50,000 - Fixed Costs
Fixed Costs = 1,00,000 - 50,000 - 20,000 = 30,000
Next, calculate Contribution Margin:
Contribution Margin = Sales - Variable Costs = 1,00,000 - 50,000 = 50,000
Now, B.E.P = Fixed Costs / Contribution Margin
B.E.P = 30,000 / (50,000 / 1,00,000) = 30,000 / 0.5 = 60,000
So, the Break-Even Point (B.E.P) is Rs 60,000.
B.E.P (Break-Even Point) = Fixed Costs / Contribution Margin per unit.
First, calculate Fixed Costs:
Profit = Sales - Variable Costs - Fixed Costs
20,000 = 1,00,000 - 50,000 - Fixed Costs
Fixed Costs = 1,00,000 - 50,000 - 20,000 = 30,000
Next, calculate Contribution Margin:
Contribution Margin = Sales - Variable Costs = 1,00,000 - 50,000 = 50,000
Now, B.E.P = Fixed Costs / Contribution Margin
B.E.P = 30,000 / (50,000 / 1,00,000) = 30,000 / 0.5 = 60,000
So, the Break-Even Point (B.E.P) is Rs 60,000.
Ques:- What do you mean by wasting assets?
Asked In :-
Mother Dairy, Kuvera, Icici Securities Ltd, M&T Bank Corporation, ev, liberty utilities, bajaj finance, auditboard, sir ratan tata trust, npcl,
Right Answer:
Wasting assets are natural resources or assets that have a limited lifespan and deplete over time, such as minerals, oil, or timber.
Wasting assets are natural resources or assets that have a limited lifespan and deplete over time, such as minerals, oil, or timber.
Ques:- What is Back Flash Accounting and explain with an example
Right Answer:
Back Flash Accounting is a method used to record costs after the production process has occurred, rather than tracking costs in real-time. It simplifies accounting by assigning costs to products based on the final output rather than detailed tracking of each input.
For example, if a company produces 1,000 units of a product, it may calculate the total costs of materials and labor after production is complete and then allocate those costs evenly across the 1,000 units, rather than tracking each individual material and labor cost during the production process.
Back Flash Accounting is a method used to record costs after the production process has occurred, rather than tracking costs in real-time. It simplifies accounting by assigning costs to products based on the final output rather than detailed tracking of each input.
For example, if a company produces 1,000 units of a product, it may calculate the total costs of materials and labor after production is complete and then allocate those costs evenly across the 1,000 units, rather than tracking each individual material and labor cost during the production process.
Ques:- What is partitioning?
Asked In :-
V Singhi & Associates, Margadarsi Chit Fund,
Right Answer:
Partitioning is the process of dividing a company's financial statements or accounts into separate sections or segments to improve clarity, analysis, and reporting.
Partitioning is the process of dividing a company's financial statements or accounts into separate sections or segments to improve clarity, analysis, and reporting.
Ques:- What are the extraordinary items?
Right Answer:
Extraordinary items are significant gains or losses that are both unusual and infrequent in nature, which are reported separately on a company's income statement.
Extraordinary items are significant gains or losses that are both unusual and infrequent in nature, which are reported separately on a company's income statement.
Ques:- What is premises in accounting sense ?What is VAT adjustment?
Right Answer:
In accounting, "premises" refers to the physical location or property where a business operates, including buildings and land used for business activities.
VAT adjustment is the process of correcting or modifying the Value Added Tax amounts that a business has reported or paid, often due to changes in transactions, errors, or refunds.
In accounting, "premises" refers to the physical location or property where a business operates, including buildings and land used for business activities.
VAT adjustment is the process of correcting or modifying the Value Added Tax amounts that a business has reported or paid, often due to changes in transactions, errors, or refunds.
Ques:- What is meant by Interest accrual ?
Asked In :-
spi global, south indian bank, centenary bank, saraswat bank, bua group, equinox labs, african alliance insurance plc (afrinsur),
Right Answer:
Interest accrual refers to the process of recognizing and recording interest expense or income that has been incurred or earned but not yet paid or received. It reflects the accumulation of interest over time in financial statements.
Interest accrual refers to the process of recognizing and recording interest expense or income that has been incurred or earned but not yet paid or received. It reflects the accumulation of interest over time in financial statements.
Ques:- What are Closures and Premature Closures of the accounts?
Asked In :-
O P Jindal Global University, Adaptive Financial Consulting, rsm uk, fisher investments,
Right Answer:
Closures of accounts refer to the process of finalizing financial records for a specific period, ensuring all transactions are recorded and reconciled. Premature closures occur when accounts are closed before all necessary transactions and adjustments are completed, potentially leading to inaccuracies in financial reporting.
Closures of accounts refer to the process of finalizing financial records for a specific period, ensuring all transactions are recorded and reconciled. Premature closures occur when accounts are closed before all necessary transactions and adjustments are completed, potentially leading to inaccuracies in financial reporting.
Ques:- Cash budgets in the compnay must be prepared before the operating income budgets?Yes / No? Explain why
Asked In :-
Slater & Gordon UK, Chemist Warehouse, Uday Group (India), deliveroo, dhaka stock exchange ltd, otn,
Right Answer:
Yes. Cash budgets must be prepared before operating income budgets to ensure that the company has enough cash flow to support its operations and planned expenses.
Yes. Cash budgets must be prepared before operating income budgets to ensure that the company has enough cash flow to support its operations and planned expenses.
Ques:- What is daily accrual and booking ?
Right Answer:
Daily accrual refers to the process of recognizing expenses and revenues that have been incurred but not yet recorded in the financial statements on a daily basis. Booking, in this context, means entering these accrued amounts into the accounting system to ensure that the financial records reflect the company's true financial position.
Daily accrual refers to the process of recognizing expenses and revenues that have been incurred but not yet recorded in the financial statements on a daily basis. Booking, in this context, means entering these accrued amounts into the accounting system to ensure that the financial records reflect the company's true financial position.
