41⟩ What is the mean of departmental accounting?
It is a type of accounting in which separate account is created for departments. It is managed separately as well as shown independently in the balance sheet.
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65 Accountant Questions And Answers
42⟩ What you know about service tax or excise?
It is a kind of hidden tax that is included in the service provided by the service provider and paid by the service receiver.
43⟩ Where do you show TDS, In balance sheet?
It is shown on the assets section, right after the head current asset.
44⟩ TDS stands for?
TDS abbreviates Tax Deduction at Source.
45⟩ What is the mean of balance sheet in Accounting?
It is a statement that states all the liabilities and assets of the company at certain point.
46⟩ What types of business transactions are in accounting?
There are two types of transactions in accounting i.e. revenue and capital.
47⟩ What is the abbreviation of debit and credit in the accounting terms?
Debit abbreviation is "dr" and credit abbreviation is "cr".
48⟩ What is the mean of private Accounting?
Private accounting is done for your own company.
49⟩ What is the mean of public accounting?
Public accounting is a type of accounting that is done by one company for another company.
50⟩ What is provisions in Accounting?
Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses.
51⟩ What is reserves in accounting?
Reserves are the profits of any company and a part of that profit is placed back to the business to keep it sustainable in tough times of a company.
52⟩ Explain ordinary annuity?
In accounting, an ordinary annuity refers to a series of identical cash amounts with each amount occurring at the end of equal time intervals.
An example of an ordinary annuity is the series of semiannual interest payments that are part of a bond payable. For instance, a 10-year bond with a maturity amount of $10 million and a stated interest rate of 6% will require interest payments of $300,000 at the end of each of the 20 six-month time intervals.
Another example of an ordinary annuity is a mortgage loan having a fixed interest rate and a series of equal monthly payments that will begin 30 days after the loan is granted. Thus a 15-year mortgage loan will result in an ordinary annuity of 180 equal monthly payments with the first payment due approximately 30 days after the loan is made.
An ordinary annuity is also known as an annuity in arrears.
53⟩ Define operating expenses?
Operating expenses are the costs associated with a company's main operating activities and which are reported on its income statement.
For example, a retailer's main operating activities are the buying and selling of merchandise or goods. Therefore, its operating expenses will include:
☛ Cost of goods sold: These costs are reported as operating expenses on the income statement because of the matching principle. The revenues from the sale of merchandise must be matched with the cost of the merchandise that is sold.
☛ Selling, general and administrative expenses (SG&A): These costs are reported as operating expenses on the income statement because they pertain to operating the main business during that accounting period. These costs may have expired, may have been used up, or may not have a future value that can be measured.
54⟩ Define working capital?
Working capital is defined as current assets minus current liabilities; it tells the financial statement user how much cash is tied up in the business through items such as receivables and inventories and also how much cash is going to be needed to pay off short term obligations in the next 12 months.
55⟩ Can a company show positive cash flows but be in grave trouble?
Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward.in the pipeline.
56⟩ How is it possible to show positive net income but go bankrupt?
Two examples include deterioration of working capital (i.e. increasing accounts receivable, lowering accounts payable), and financial shenanigans.
57⟩ What knowledge about accounting standards you have?
Yes, as per my knowledge there are total 33 accounting standards published so far by ICAI. The purpose of these standards is to implement same policies and practices in any country
58⟩ What is the mean of inactive and dormant accounts?
Yes, both are different terms in accounting. Inactive accounts means that accounts have been closed and will not be used in future as well. While, dormant accounts are those that are not functional today but may be used in future.
59⟩ What are the accountant working areas?
In many jurisdictions, professional accounting bodies maintain standards of practice and evaluations for professionals. Accountants who have demonstrated competency through their professional associations' certification exams are certified to use titles such as Chartered Accountant, Chartered Certified Accountant or Certified Public Accountant. Such professionals are granted certain responsibilities by statute, such as the ability to certify an organization's financial statements, and may be held liable for professional misconduct. Non-qualified accountants may be employed by a qualified accountant, or may work independently without statutory privileges and obligations.
60⟩ Who is accountant?
An accountant is a practitioner of accounting or accountancy, which is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and others make decisions about allocating resources.
