1⟩ Define online pooling service?
Pooling service allows you a virtual consolidation of balances for reporting and analysis purposes. Pooling differs from Sweeping on that no funds movement occurs, the function is only of reporting nature.
Cash Management
Home Management Cash Management
“Cash Management related Frequently Asked Questions by expert members with experience in Cash Management. These questions and answers will help you strengthen your technical skills, prepare for the new job test and quickly revise the concepts”
29 Cash Management Questions And Answers
2⟩ Is it possible to appoint a representative to perform transactions on my behalf?
Yes you can appoint a representative to perform your transactions on your behalf. Your representative will then be responsible for any transactions carried through this connection.
3⟩ When the collected cash credited to account?
If all the information provided by you on cash collection receipt is complete and correct, cash collected can be credited to your account on the same day.
4⟩ Tell us about the timings for providing cash management services from my premises?
We give our customers the option to indicate their preferred time for cash collection and delivery between 11:00 hours and 19:00 hours. A daily service is then developed for each customer matching as closely as possible with the indicated preference time.
5⟩ What are cash management services?
Cash Management services include physical cash & check collection from your business premises to our designated cash centers and a host of online cash management solutions.
6⟩ Define draft capture system?
The "draft capture system" pertains to credit cards. It is the closeout process on your credit card machine.
7⟩ Tell me do I need to develop some in-house interface/spplication to use the service?
No, you do not need to have any in-house I.T. related development. All our services are web based applications.
8⟩ Which types of enquires make using online cash management services?
online Cash Management Solution enables you to inquire in real-time, 24 hours a day, about various aspects of your cash management. It allows you to retrieve several types of statements and get transaction advice. You can download your statements directly to your computer for an offline review, whether for archiving or for accounting purposes.
9⟩ What kind of search facility within my cash management services?
A powerful search facility is available in all functions to view particular transactions or details by specifying date range, amount range or transaction type.
10⟩ Define online sweeping service?
This service allows you to move money between related accounts on a periodic basis.
11⟩ Define online cash management services?
Online cash management services include online, sweeping, pooling, transfers, payroll management, and bill payments.
12⟩ Which type of deposit bank doesnt give interest?
In CURRENT ACCOUNT bank doesn't give any interest, but there are few banks where you can have interest checking account.
13⟩ Described the levels of authorization on online cash management services?
For any financial transaction there is a 3 level authorization process to provide greater control.
14⟩ What is VAT?
VAT (Value Added Tax): It is value added Tax. means total value which is added in goods price as a profit , on that value, the tax is paid is called VAT.
15⟩ What are the types of VAT? How VAT works?
We can see it with example:
goods Purchase= 20000
Input Tax @ 4 % = 20000*4%= 800
now we sold this goods
Sale = 35000
Out put tax @ 4 % = 35000*4% = 1400
When we purchased Goods the saler collect a tax value from us as a sales tax. then we sold goods. we charge a tax amount in invoice. finally wen we pay tax to govt.
then total value of tax payble will be : Out put tax - Input Tax= 1400-800 = 600.
So Nett Tax payable Amount Is Rs. 600. this amount is a part of total value added in sales price not that sales price.
we can see it : Total Value add: Sales - Purchase = 35000-20000= 15000.
and tax amount on value added:15000*4 % = 600.
it has been proved that VAt Is an value added Tax.
16⟩ Can you please explain the difference between revenue expenditure and its treatment in accounts?
The nature of some expenses is such that though they do not create an asset but their benefit is spread over more than one accounting period. These are mostly non-recurring and large in amount.
In such circumstances instead of debiting the entire amount of these expenses to Profit and Loss of the year, it may be spread over a number of years with a
proportionate amount being charged each year to P&L Account.
The portion that is still not charged to Profit and Loss is shown in the balance sheet on the asset side after Capital Work in Progress and is called
Deferred Expenditure.
Examples are Expenses incurred to start a business, Initial marketing cost to launch a product etc.
17⟩ Can you please explain the difference between Cash Book and Pass Book?
Recording of all cash transactions in a Book by Casher is called "Cash Book" and coming to Pass Book, Recording of all bank transactions by a banker in a book, which is given by banker is called "Pass Book".
18⟩ What is Bill of lading?
A required document to move a freight shipment. The bill of lading (BOL) works as a receipt of freight services, a contract between a freight carrier and shipper and a document of title. The bill of lading is a legally binding document providing the driver and the carrier all the details needed to process the freight shipment and invoice it correctly.
19⟩ What is the treatment for accrued income l expenses in accounting?
Accrued Income- Dr. Accrued Interest Receivable
Cr. Interest Income
at the time of Interest posting: Dr. Customers Account
Cr. Accrued Interest Receivable
Accrued Expenses- Dr. Interest Expenses
Cr. Accrued Interest Payable
at the time of Interest posting: Dr. Accrued Interest Payable
Cr. Customers Account
20⟩ What is Shipping Bill?
When a customer books a shipment with Freight quote, the bill of lading is automatically generated based on the shipment details entered during the quoting and booking process. The bill of lading should be provided to the carrier on pick up and will be delivered to the consignee on delivery.
