Questions in: Corporate/Business Roles

Right Answer:
Income tax is a tax imposed by the government on an individual's or entity's earnings. It is calculated based on the total income earned during a specific period, typically a year, minus any allowable deductions or exemptions. The tax rate can vary depending on the income level and tax brackets set by the government.

Right Answer:
Cost accountancy is a branch of accounting that focuses on capturing, analyzing, and reporting costs associated with a company's operations. The main objectives of cost accountancy are:

1. To ascertain the cost of products or services.
2. To control and reduce costs.
3. To assist in budgeting and financial planning.
4. To provide information for decision-making.
5. To evaluate the efficiency of operations.

Right Answer:
Working capital is the difference between a company's current assets and current liabilities. It measures the short-term financial health and operational efficiency of a business, indicating how well it can cover its short-term obligations.

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Journalizing is the process of recording financial transactions in a journal, which is the first step in the accounting cycle. The columns of a journal typically include:

1. Date
2. Account Titles
3. Debit Amount
4. Credit Amount
5. Description (optional)

Right Answer:

Securities include stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, and derivatives.

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Alternative Minimum Tax (AMT) is a separate tax calculation that ensures individuals and corporations pay at least a minimum amount of tax, regardless of deductions and credits that may reduce their regular tax liability.

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Capitalization refers to the process of recording a cost as an asset on the balance sheet rather than an expense on the income statement. This is important because it allows a company to spread the cost of an asset over its useful life, which can improve financial statements by showing higher profits in the short term and providing a more accurate picture of the company's financial health.

Right Answer:
A resident but not ordinary resident is an individual who meets the residency criteria in a country but does not satisfy the conditions to be considered an ordinary resident, typically due to limited stay or specific circumstances that indicate they do not intend to reside there permanently.

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Profit refers to the overall financial benefit a business earns after all expenses are deducted from revenue, while gain specifically refers to the increase in value from the sale of an asset or investment, often realized when the asset is sold for more than its purchase price.

Right Answer:
In my previous company, I managed my duties by prioritizing tasks based on urgency and importance, using project management tools to track progress, maintaining clear communication with team members and stakeholders, and regularly reviewing and adjusting my workload to meet deadlines effectively.

Right Answer:
Net profit ratio is 12%.

Right Answer:
B.E.P (Break-Even Point) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

To find the selling price per unit, we can use the profit formula:

Profit = Total Revenue - Total Costs

Total Costs = Fixed Costs + Variable Costs = Rs 1,50,000 + Rs 2,00,000 = Rs 3,50,000

Total Revenue = Total Costs + Profit = Rs 3,50,000 + Rs 1,50,000 = Rs 5,00,000

Now, we can calculate B.E.P:

B.E.P = Fixed Costs / (Total Revenue / Total Units - Variable Cost per Unit)

Assuming the selling price per unit is Rs 5,00,000 / Total Units, we can derive the B.E.P.

However, without the selling price per unit or total units, we cannot calculate the exact B.E.P in units.

If we assume the selling price per unit is

Right Answer:
A purchase return in accounting is the process of returning goods that were previously purchased, resulting in a reduction of the purchase amount and inventory.

Right Answer:
The volume variance is Rs 5,100 unfavorable.

Right Answer:
Total Fixed Cost = Rs 10,000; Per Unit Marginal Cost = Rs 2.

Right Answer:
Accounting involves the systematic recording, reporting, and analysis of financial transactions, while auditing is the independent examination of financial statements and records to ensure accuracy and compliance with accounting standards and regulations.

Right Answer:
Deferred tax liability is a tax obligation that a company will pay in the future due to temporary differences between accounting income and taxable income. Items that come under deferred tax liability include:

1. Accelerated depreciation on fixed assets.
2. Revenue recognized for accounting purposes but not yet taxable (e.g., unearned revenue).
3. Investments in subsidiaries or joint ventures where income is deferred for tax purposes.

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Marginal cost is the additional cost incurred to produce one more unit of a product or service.

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A perpetual inventory system continuously updates inventory records for each purchase and sale, providing real-time inventory levels. A periodic inventory system updates inventory records at specific intervals, such as monthly or annually, requiring a physical count to determine inventory levels.

Right Answer:
Entertainment Tax is a tax levied by the government on the revenue generated from entertainment activities, such as movie tickets, concerts, and sporting events.