Ques:- A factory produces two types of articles Y and Z. Article Y takes 8 hours to make and Z takes 16 hours. In a month ( 25 days * 8 hours) 600 units of X and 400 units of Z are produced. Given budgeted hours 8000 per month and men employed are 50. Determine Activity ratio, Capacity ratio and efficiency ratio.
Right Answer: Evaluated Receipt Settlement (ERS) is a process in accounts payable where payment is made to a supplier based on the receipt of goods rather than an invoice. It simplifies the payment process by allowing companies to pay for goods automatically upon receipt, reducing paperwork and the need for invoice matching.
Right Answer: Excise duty is a type of tax imposed on the manufacture, sale, or consumption of specific goods within a country, typically applied to products like alcohol, tobacco, and fuel.
Right Answer: To handle credit claims, first verify the claim details against the original transaction. Ensure all necessary documentation is provided. Then, assess the validity of the claim based on company policies. If approved, process the credit in the system and communicate the outcome to the customer. Finally, update records and follow up to ensure customer satisfaction.
Right Answer: Changing the depreciation method from straight-line to another method will impact the financial statements by altering the amount of depreciation expense recognized each period, which can affect net income and tax liabilities. Additionally, it may change the book value of assets on the balance sheet.
Right Answer: Depreciation on gift items is generally not recorded, as they are not considered business assets. However, if the gift item is used for business purposes, it may be subject to depreciation based on its useful life.
Right Answer: The Short Term Solvency Ratio, also known as the Current Ratio, measures a company's ability to pay its short-term liabilities with its short-term assets. It is calculated by dividing current assets by current liabilities.
Right Answer: Standard remittance refers to the process of sending payments or funds directly to a payee, typically involving cash or checks. Bills receivable remittance, on the other hand, involves the collection of payments for outstanding invoices or bills that a company is owed, often represented by promissory notes or accounts receivable.
Right Answer: Contingent liabilities are potential financial obligations that may arise in the future depending on the outcome of a specific event, such as a lawsuit or warranty claim, but are not yet recognized as actual liabilities on the balance sheet.
Right Answer: HDFC Management Company refers to HDFC Asset Management Company, which is a financial services company in India that manages mutual funds and provides investment solutions.
Right Answer: A debit note is a document issued by a buyer to a seller, indicating a return of goods or a reduction in the amount owed. A credit note is issued by a seller to a buyer, acknowledging a return of goods or a reduction in the amount due, effectively reducing the buyer's debt.
Right Answer: The salary should be based on the industry standard, the candidate's experience, and the specific responsibilities of the cashier position.
Right Answer: To handle multiple work tasks, prioritize them based on urgency and importance, create a to-do list, set specific time limits for each task, and stay organized. Use tools like calendars or task management apps to keep track of deadlines and progress. Communicate with your team if you need assistance or if priorities change.