21⟩ Define gross profit margin?
Gross Profit Margin = Gross Profit/Sales or Revenue
Gross Profit = Sales or Revenue - Cost of Goods Sold
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53 Accounts Manager Questions And Answers
22⟩ What are the columns of a journal?
Journal has following five columns:
★ Date
★ Particulars
★ Ledger
★ Amount Debited
★ Amount Credited
23⟩ Define Journalizing?
Journalizing is the process of recoding business transactions in the Journal in chronological order, as and when the transactions take place. Journal is also known as Book of Original Entry or the Book of Prime Entry.
24⟩ Define accounting report?
Periodic statemets showing financial position of a firm/company for a specific period, resulted from its business tranasctions and operations.
25⟩ Can you please explain the difference between forecasting and Budget?
Forecosting is done based on the past experiences of the persons in the particular field and predict the cost involved for the particular action or for the data collected about the a project in the past it is done on based of past data.
26⟩ How will you account B company investment in C company in consolidated accounts?
A parent company, acquired 80% of B company, which in turn has already acquired 40% of C company. How will you account profit of C company in consolidated accounts? How will you account B company investment in C company in consolidated accounts?
27⟩ Define committed cost?
Committed cost is a fixed cost which results from the decisions of the management in the prior period and is not subject to the management control in the present on a short run basis. They arise from the possession of production facilities, equipment, an organization setup, etc.
Some examples of committed costs are:
plant and equipment depreciation, taxes, insurance premium and rent charges.
28⟩ What are different kind of MIS reports?
Management Information System (MIS) reports are prepared for the management to take key managerial decisions. It may vary from company to company and industry to industry.
29⟩ Difference between forecasting & Budget?
Budget is the cost involved for the project right from start all tha cost regarding materials, men power, place, time to complete the the project with in a time frame and the cost involved it.
In budgeting, a detail study will be done from laying a plan, study the number of methods to do the task, the technology to be use, the alternative way or process, manpower required and their skill level and the time duration from raw material to finished goods convertion and the work in progress must be taken to account and life time of project and return from the project are calculated in black and white based on which decision are taken whether to do the project are not.
30⟩ Define appropriation?
Money set aside (as by a legislature) for a specific purpose generally for aquisitions by a firm.
31⟩ Can you please explain the difference between payment and charge reversals?
Type of payment: Cash,debit card,credit card,gift certificate,money order,personal check,bill me later,paypal account,paypal alternative.
32⟩ Define Asset accounting?
Deep is the decreasing the value of assets.
33⟩ Why we cannot depreciate stock?
Depreciation is charged only on fixed assets because we are allocating the total expense of Fixed asset for many years.
Stock is a current asset generally used to sell with in a year only.
More importantly we show consumption of stock in Trading A/c through Cost of goods sold.
(i.e.,Opening stock + Purchase - Closing Stock)
That means Stock consumption expenses is already booked in Trading A/c hence we do not show again as expense by treating as deprecation.
34⟩ Tell me how FIRC accounting is done?
When any foreign exchange (currency) comes to your bank account Bank wants confirmation from your side as per RBI rule i.e.-what is the purpose of this remittance means how and why got this money? Then You have to submit the purpose/amount/ bank account etc. to the bank.This is the procedure of giving disposal instruciton of remittance after this document you can ask to get FIRC.
35⟩ What are the various items fall in balance sheet?
(A)asset side items are:
1. cash in hand
2. cash at bank
3. debtor
4. land ,building
5. prepaid expenses
6. bills receivable
(B)liability side:
1. capital
2. bank over draft
3. creditor
4. outstanding expenses
5. bills payable
36⟩ how to do finalization of accounts?
Finalization of accounts is preparing financial reports in comparison with briefing of companys financial reports. Which include Income ,Cash flows, Balance Sheet, Policies, disclosures, and Equity.
37⟩ Define MIS reports?
A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy.
38⟩ Define an aging report in Accounting?
Aging Report is called Vendor wise & Customer Wise Outstanding - Report
Example : 30 days , 30 to 60 days and crossed 180 days... - Balance Report
39⟩ Define Contingent Liability?
Contingent Liability is the liability which may / may not occour in future... So, it is shown as notes rather then in balance sheet... Once, the liability become's real then it will recorded in books.
40⟩ What is MIS report in accounting and how to prepare it?
MIS report means Management Information System. MIS is prepared to know the day to day transactions of a company. Simply to know the position of the company ( profitability or loss).
Income(sales-export,domestic,job work)- Expenditure(manufacturing, administration,S & D,Financial expenses).
