1. WHAT IS STATUTORY AUDIT?

Answer: Statutory audit is done by chartered Accountants, to verify the financial statement's

fairness and it is done annually. It ensures that, to the best knowledge of the auditors, financial

statements are free from any misrepresentations and frauds.

2. WHAT IS INTERNAL AUDIT

Answer: An inspection and verification of the financial records of a company or firm by a

member of its own staff to determine the accuracy and acceptability of its accounting practices.

3. WHAT IS EXTERNAL AUDIT?

Answer: A periodic examination of the books of account and records of an entity conducted by

an independent third party (an auditor) to ensure that they have been properly maintained, are

accurate and comply with established concepts, principles, and accounting standards, and give a

true and fair view of the financial state of the entity.

4. EXPLAIN THE DIFFERENCE BETWEEN INTERNAL AND EXTERNAL AUDIT.

Answer: The internal audit is conducted to help the management. The weakness of the

management is disclosed. The external audit is conducted to help the shareholder. The rights of

owners are protected. The appointment of internal audit is made by the management. The

appointment in external audit is made by the shareholders. Internal audit is the part of internal

control.

External audit is the not the part of internal control. The internal audit can suggest improvement

in internal check system. The external audit cannot suggest improvement in internal check

system. The internal audit can perform his duties under the terms of appointment. The

management can limit the scope of work at any time. The external auditor can perform his work

to terms of appointment and other prescribed law. The scope is very wide. Internal audit is an

employee of the company. He is not an independent person. External auditor is not an employee

of the company.

5. WHAT DO YOU MEAN BY ‘VOUCHING’?

Answer: Vouching is the process of checking the authentication of the voucher maintain by the

management with the respective supporting document

6. DEFINITION OF AUDIT.

Answer: An examination and verification of a company's financial and accounting records and

supporting documents by a professional, such as a Certified Public Accountant.

7. WHAT ARE OBJECTIVES OF INTERNAL AUDIT?

Answer: The purpose of internal audit is to keep proper control over business activities. When

there is proper control there is maximum efficiency. The internal auditor determines the degrees

of control over work. The purpose of internal audit is to evaluate the accounting system. It is

concerned with checking proper authority for transactions like purchase, retirement and disposal

of fixed assets. The vouchers can be compared with entries in order to determine that figures are

facts.

The purpose of internal audit is to help the management. Internal auditor can point out the

weakness. The internal audit can be used as a tool to correct the situation. The management

functions can be performed properly. The purpose of internal audit is to review the working of

business. The working of current tear can be reviewed in detail just to note the successful area of

working. There is a need to locate the weak points. The corrective measures can be taken for

proper working.

8. EXPLAIN THE DIFFERENCE BETWEEN INTERNAL AUDIT AND STATUTORY

AUDIT?

Answer: An internal audit is one which is conducted by the internal auditors of the company. It is

not mandatory for the company and the company just conducts it to keep a check on the

operations of the company. On the other hand statutory audit is very important because it is by

the external auditors and it is mandatory for all kinds of companies. Statutory audit is usually

conducted for various purposes like tax regulatory requires it for taxation purposes.

9. WHAT IS AN AUDIT PROCESS?

Answer: The word 'Audit' is a derivative of the word 'Audition' which means 'to hear'. In earlier

times, the Kings used to hear their accountants narrate the accounts verbally. However, as the

complexity of the accounting function grew, need was felt to thoroughly check the accounts for

mistakes misclassification and document the findings in a written form so that it can be used by

the Management, stakeholders, investors, Government and various other bodies. This process is

known as Auditing or Audit.

10. FUNCTIONS OF AUDIT?

Answer: The function of internal audit is concerned with analysis of internal check. The internal

audit can look into the duties of each employee. All employees are provided jobs on the basis of

their abilities. The auditor can test the effectiveness of internal check. The function of internal

audit is examining the application of legal requirements.

The accounts are prepared under certain legal frame work. Verification of accuracy is a function

of internal audit. The accuracy of accounting books and records can be verified with the help

auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation,

computation and review. An auditor can check the accuracy through these techniques.

11. WHAT IS ANNUAL GENERAL MEETING (AGM)?

Answer: AGM the statutory meeting of the directors and shareholders of a company or of the

members of a society, held once every financial year, at which the annual report is presented

12. WHAT IS EXTRAORDINARY GENERAL MEETING (EGM)?

Answer: A meeting other than the annual general meeting between a company's shareholders,

executives and any other members.

13. RULES SURROUNDING THE AGM

Answer: Most private companies are not required to hold an AGM. Public limited companies

must hold an AGM within six months of their financial year end. Companies can still hold an

AGM if they choose to. As with other meetings, an AGM must be arranged if any director asks

for one with due notice, or if 5 per cent of the members request one. A company may also still

need to hold one in certain circumstances. For example, you must hold an AGM if you want to

dismiss a director or auditor before the end of their term, or if you are a public company with

traded shares.

If the company does hold an AGM:

* You must send written notice to the directors and shareholders 14 days in advance (21 days in

advance for public companies with traded shares), unless your company articles state otherwise.

An AGM can be held at shorter notice if 90 per cent of members agree (95 per cent for plcs).

* You are no longer required to circulate copies of the company's accounts before an AGM.

However, they must be sent to members before they are due to be filed with the registrar of

companies.

* Directors and shareholders can vote on the appointment of directors and auditors to the

company (if required).

* Ordinary resolutions can now be passed by a simple majority and special resolutions require at

least 75 per cent of those eligible to vote in favor.

* You must file at Companies House any special resolutions passed at a meeting usually called

on short notice and deals with an urgent matter.

14. WHAT IS ACCOUNTING?

Answer: The information system that identifies, records, and communicates the economic events

of an organization to interested users

15. DEFINITION OF CASH BASIS ACCOUNTING?

Answer: An accounting method in which income is recorded when cash is received, and

expenses are recorded when cash is paid out.

16. DEFINITION OF ACCRUAL BASIS ACCOUNTING?

Answer: The most commonly used accounting method, which reports income when earned and

expenses when incurred.

17. WHAT IS CAPITAL EXPENDITURE?

Answer: Money spent to acquire or upgrade physical assets such as buildings and machinery,

also called capital spending or capital expense.

18. WHAT IS REVENUE EXPENDITURE?

Answer: All expenses incurred in running a business such as salaries, wages, rent, lighting,

stationary etc. are classed as revenue expenditure. Beside expense incurred in putting the fixed

assets in proper order by repairs and renewals are also revenue expenditures.

19. WHAT IS ASSET?

Answer: Assets are a company’s resources—things the company owns. Examples of assets

include cash, accounts receivable, inventory, prepaid insurance, investments, land, buildings,

equipment, and goodwill. From the accounting equation, we see that the amount of assets must

equal the combined amount of liabilities plus owner’s (or stockholders’) equity.

20. WHAT IS LIABILITIES?

Answer: Liabilities are a company’s obligations—amounts the company owes. Examples of

liabilities include notes or loans payable, accounts payable, salaries and wages payable, interest

payable, and income taxes payable

21. WHAT IS OWNER’S OR STOCKHOLDERS’ EQUITY?

Answer: Owner’s or stockholders’ equity also reports the amounts invested into the company by

the owners plus the cumulative net income of the company that has not been withdrawn or

distributed to the owners.

22. DEFINITION OF REVENUE?

Answer: this is the total amount of money received by the company for goods sold or services

provided during a certain time period.

23. DEFINITION OF EXPENSE?

Answer: Payment of cash or cash-equivalent for goods or services, or a charge against available

funds in settlement of an obligation as evidenced by an invoice, receipt, voucher, or other such

document.

24. WHAT IS DEPRECIATION?

Answer: A non cash expense that reduces the value of an asset as a result of wear and tear, age,

or obsolescence. Most assets lose their value over time (in other words, they depreciate).

25. WHAT IS INCOME STATEMENT?

Answer: A financial statement that presents the revenues and expenses and resulting net income

or net loss of a company for a specific period of time .

26. WHAT IS BALANCE SHEET?

Answer: A financial statement that summarizes a company's assets, liabilities and shareholders'

equity at a specific point in time.

27. WHAT IS CASH COW?

Answer: any business venture , operation, or product that is a dependable source of income or

profit .

28. DEFINITION OF TAX?

Answer: A fee charged ("levied") by a government on a product, income, or activity of an

organization or person.

29. WHAT IS DIRECT TAX?

Answer: In the general sense, a direct tax is one paid directly to the government by the persons

or organization (juristic or natural) on which it is imposed (often accompanied by a tax return

filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer

taxes such as estate (inheritance) tax and gift tax.

30. WHAT IS INDIRECT TAX?

Answer: A tax, such as a sales tax or value-added tax, that is levied on goods or services rather

than individuals and is ultimately paid by consumers in the form of higher prices.

31. WHAT IS TAX HOLIDAY?

Answer: A government incentive program that offers a tax reduction or elimination to

businesses. Tax holidays are often used to reduce sales taxes by local governments, but they are

also commonly used by governments in developing countries to help stimulate foreign

investment.

32. WHAT IS VAT?

Answer: Value Added Tax. A consumption tax which is levied at each stage of production based

on the value added to the product at that stage.

33. WHAT IS INCOME TAX?

Answer: a tax levied on incomes, especially an annual government tax on personal incomes.

34. WHAT IS INTERNAL RATE OF RETURN (IRR)?

Answer: The internal rate of return (IRR) is a rate of return used in capital budgeting to measure

and compare the profitability of investments. It is also called the discounted cash flow rate of

return (DCFROR) or simply the rate of return (ROR).

35. WHAT IS NET PRESENT VALUE?

Answer: Net present value is an economic standard method for evaluating competing long-term

projects in capital budgeting.

36. WHAT IS FAIR MARKET VALUE?

Answer: The price that an interested but not desperate buyer would be willing to pay and an

interested but not desperate seller would be willing to accept on the open market assuming a

reasonable period of time for an agreement to arise.

37. WHAT IS HARDWARE?

Answer: Hardware refers to a physical piece of a computer. This could be a hard drive, monitor,

memory chip, or CPU. The key idea is that the item is something you can touch. This compares

to software which is not tangible in any way. You can't pick it up or weigh it. Yet, without

software, hardware is useless.

Typical examples of hardware include the computer you're using to view this page, the hard

drive that has this page stored on it, and the mouse you used to click on a link to bring you to this

page.

38. WHAT IS SOFTWARE?

Answer: Software is a general term for the various kinds of programs used to operate computers

and related devices. Software is not visible.

39. WHAT IS INTERNET?

Answer: a vast computer network linking smaller computer networks worldwide (usually

preceded by the). The Internet includes commercial, educational, governmental, and other

networks, all of which use the same set of communications protocols.

40. WHAT IS E-COMMERCE?

Answer: E-commerce (electronic commerce or EC) is the buying and selling of goods and

services on the Internet, especially the World Wide Web. In practice, this term and a newer term,

e-business, are often used interchangeably. For online retail selling, the term e-tailing is

sometimes used.

41. WHAT IS E-MAIL?

Answer: E-mail (electronic mail) is the exchange of computer-stored messages by

telecommunication. (Some publications spell it email; we prefer the currently more established

spelling of e-mail.) E-mail messages are usually encoded in ASCII text. However, you can also

send non-text files, such as graphic images and sound files, as attachments sent in binary

streams.

42. SOME Elaborations:

ICAB - Institute of Chartered Accountants of Bangladesh.

ICMAB - Institute of Cost and Management Accountants of Bangladesh

CIMA - Chartered Institute of Management Accountants

ICDDRB - International Centre for Diarrhea Disease Research, Bangladesh

NBR - National Board of Revenue

SEC - Securities and Exchange Commission

DSE - Dhaka Stock Exchange

CSE, - Chittagong Stock Exchange

FBCCI - Federation of Bangladesh Chambers of Commerce and Industries

GAAP - Generally Accepted Accounting Principles

RAM - Random-access memory

SOME ACCOUNTING BODIES

IASB - International Accounting Standards Board

FASB - Financial Accounting Standards Board

ASB - Accounting Standards Board

GASB - Governmental Accounting Standards Board

43. OTHER ORGANIZATION & BODIES:

IFIC - International Federation of Accountants

AIA - Association of International Accountants

AAA - American Accounting Association

ICAEW - Institute of Chartered Accountants in England and Wales

SAFA - South Asian Federation of Accountants

44. SOME STANDARDS & PRINCIPLES:

GAAP - Generally Accepted Accounting principles

BAS - Bangladesh Accounting Standards

IFRS - International Financial reporting Standards

FAS - Financial Accounting Standards (USA)

FRS - Financial reporting Standards (UK)

45. AUDITING STANDARDS & BODIES:

ISA - international Standards on auditing

IAASB - International Auditing and Assurance Standards Board

46. PROFESSIONAL DEGREES & ORGANIZATION:

CA = Chartered Accountant

ACA = Associate of Chartered Accountants

FCA = Fellow of Chartered Accountants

ICAB - Institute of Chartered Accountants of Bangladesh. these kinds of degree provid by

Institute of Chartered Accountants of Bangladesh(ICAB)

CPA = Certified Public Accountant

AICPA = American Institute of Certified public Accountant

47. PROFESSIONAL DEGREES & ORGANIZATION:

CMA = Certified Management Accountants

ACMA = Associate of Certified Management Accountants

FCMA =fellow of Certified Management Accountants

CMA = Cost and Management Accountants

ACMA = Associate of Cost and Management Accountants

FCMA = Fellow of Cost and Management Accountants

ICMAB = Institute of Cost and Management Accountants of Bangladesh. These kinds of degree

provided by Institute of Cost and Management Accountants of Bangladesh

CMA = Chartered Management Accountants

ACMA = Associate of Chartered Management Accountants

FCMA = Fellow of Chartered Management Accountants

CIMA = Chartered institute Management Accountants. those degree provided by Chartered

institute Management Accountants

CAT = Certified Accounting Technician

ACCA = Associate of chartered Certified Accountants

FCCA = fellow of chartered Certified Accountants

48. WHAT IS FINANCIAL ACCOUNTING?

Answer: The area of accounting concerned with reporting financial information to interested

external parties.

Generally Accepted Accounting Principles (GAAP): Authoritative guidelines that define

accounting practice at a particular time.

Internal Revenue Service (IRS): A government agency that prescribes the rules and regulations

that govern the collection of tax revenues in the U.S.

Securities and Exchange Commission (SEC)S: The government body responsible for regulating

the financial reporting practices of most publicly owned corporations in connection with the

buying and selling of stocks and bonds.

49: WHAT IS INTANGIBLE ASSETS?

Answer: Intangible assets include patents, copyrights, trademarks, trade names, franchise

licenses, government licenses, goodwill, and other items that lack physical substance but provide

long-term benefits to the company. Companies account for intangible assets much as they

account for depreciable assets and natural resources. The cost of intangible assets is

systematically allocated to expense during the asset's useful life or legal life, whichever is

shorter, and this life is never allowed to exceed forty years. The process of allocating the cost of

intangible assets to expense Short notes;

Book value -- total assets minus total liabilities. (See also net worth.) Book value also means the

value of an asset as recorded on the company's books or financial reports. Book value is often

different than true value. It may be more or less.

Breakeven point -- the amount of revenue from sales which exactly equals the amount of

expense. Breakeven point is often expressed as the number of units that must be sold to produce

revenues exactly equal to expenses. Sales above the breakeven point produce a profit; below

produces a loss.

Deferred income -- a liability that arises when a company is paid in advance for goods or

services that will be provided later. For example, when a magazine subscription is paid in

advance, the magazine publisher is liable to provide magazines for the life of the subscription.

The amount in deferred income is reduced as the magazines are delivered is called amortization,

and companies almost always use the straight-line method to amortize intangible assets.

Return on investment (ROI) -- a measure of the effectiveness and efficiency with which

managers use the resources available to them, expressed as a percentage. Return on equity is

usually net profit after taxes divided by the shareholders' equity. Return on invested capital is

usually net profit after taxes plus interest paid on long-term debt divided by the equity plus the

long-term debt. Return on assets used is usually the operating profit divided by the assets used to

produce the profit. It is typically used to evaluate divisions or subsidiaries. ROI is very useful but

can only be used to compare consistent entities -- similar companies in the same industry or the

same company over a period of time. Different companies and different industries have different

ROIs.

Variable cost -- a cost that changes as sales or production change. If a business is producing

nothing and selling nothing, the variable cost should be zero. However, there will probably be

fixed costs.

Working capital -- current assets minus current liabilities. In most businesses the major

components of working capital are cash, accounts receivable, and inventory minus accounts

payable. As a business grows it will have larger accounts receivable and more inventory. Thus

the need for working capital will increase.

Write-down -- the partial reduction in the value of an asset, recognizing obsolescence or other

losses in value.

Write-off -- the total reduction in the value of an asset, recognizing that it no longer has any

value. Write-downs and write-offs are non-cash expenses that affect profits

50. WHAT IS ENTRY TAX AND TYPE OF ENTRY TAX?

Entry tax is levied on that product which transfer or enter a product from-one state to another

state or one district to another district, if you sale as such the product not restructuring.

There is two types of entry tax are available

1) Entry on Motor Vehicles-- Motor Vehicles purchased in other state enters to a different State,

and then entry tax is livable. This IS APPLICABLE ONLY FOR VEHICLES liable to be

registered under Motor Vehicles Act. The tax paid in other State can be compensated or set back

of taken, if the rate of tax is higher in the State where the vehicle is entering.

2) Entry Tax on goods--this has been recently trucked by the apex court in the case of Tindal

Strips Ltd for the reason that entry levied should be compostable otherwise it can be levied

Imposition of VAT

(1) Value Added Tax is imposed and payable on

(a) Taxable supplies; and

(b) Taxable imports.

Amount of VAT payable

(2) The amount of VAT payable is calculated by multiplying the value of the taxable supply or

import by the VAT rate.

Example: If the value is taka 100 and the VAT rate is 15%, the VAT payable is 100 x 15% =

taka 15.

VAT rate

(3) The VAT rate for a taxable supply or import is

(a) If the supply or import is zero-rated, zero per cent;

(b) In any other case, 15 (fifteen) per cent.

Change of rate

(4) Where there is a change in the VAT rate, the rate to be applied is,—

(a) For an import of goods: the rate applicable at the time the VAT becomes payable under

section 24; or

(b) For a supply of goods, services, or immoveable property: the rate applicable at the time of

supply.

51. WHAT IS INPUT TAX?

Answer: Indirect tax (such as value added tax or VAT) levied on capital goods, raw materials,

spare parts, services etc., which a business consumes or uses in its operations.

52. WHAT IS OUTPUT TAX?

Answer: Tax that a seller adds to a buyer's bill when they sell particular goods or services. At

regular periods of time, the total tax they have paid when buying goods and services themselves

is taken away from the total output taxes they have paid to arrive at a value-added tax figure that

they must pay to the government.

53. WHAT IS TAX DEDUCTION AT SOURCE (TDS)?

Answer: Tax deducted at source is one of the modes of collecting Income-tax from the assesses.

Such collection of tax is effected at the source when income arises or accrues. Hence where any

specified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of

such income to deduct a stipulated percentage of such income by way of Income-tax and pay

only the balance amount to the recipient of such income. The tax so deducted at source by the

payer has to be deposited in the Government treasury to the credit of Central Govt. within the

specified time. The tax so deducted from the income of the recipient is deemed to be payment of

Income-tax by the recipient at the time of his assessment. Income from several sources is

subjected to tax deduction at source. Presently this concept of T.D.S. is also used as an

instrument in enlarging the tax base. Some of such income are subjected to T.D.S. are salary,

interest, dividend, interest on securities, winnings from lottery, horse races, commission and

brokerage, rent, fees for professional and technical services, payments to non-residents etc.

54. WHAT IS BANK RECONCILIATION?

Answer: Analysis and adjustment of differences between the cash balance shown on a bank

statement, and the amount shown in the account holder's records. This matching process involves

making allowances for checks issued but not yet presented, and for checks deposited but not yet

cleared or credited. And, if discrepancies persist, finding the cause and bringing the records into

agreement.

55. WHAT IS RATIO ANALYSIS?

Answer: A tool used by individuals to conduct a quantitative analysis of information in a

company's financial statements. Ratios are calculated from current year numbers and are then

compared to previous years, other companies, the industry, or even the economy to judge the

performance of the company. Ratio analysis is predominately used by proponents of fundamental

analysis.

56. WHAT IS TRADE DISCOUNT?

Answer: a sum or percentage deducted from the list price of a commodity allowed by a

manufacturer, distributor, or wholesaler to a retailer or by one enterprise to another in the same

trade.

57. WHAT IS COST ACCOUNTING?

Answer: a branch of accounting dealing with the classification, recording, allocation,

summarization and reporting of current and prospective costs and analyzing their behaviors. Cost

accounting is frequently used to facilitate internal decision making and provides tools with which

management can appraise performance and control costs of doing business.

Carriage inward: Occurs when a business has to pay for purchased goods to be delivered to it's

Premises.

Carriage Outward: Occurs when a business PAYS for sold goods to be delivered to its

customer’s premises.

58. WHAT IS IRRECOVERABLE DEBTS?

Answer: A debt which is not expected to be paid .

59. WHAT IS RESIDUAL VALUE?

Answer: The amount a company expects to be able to sell a fixed asset for at the end of its useful

life.

60. WHAT IS SHARE?

Answer: A unit of ownership that represents an equal proportion of a company's capital. It

entitles its holder (the shareholder) to an equal claim on the company's profits and an equal

obligation for the company's debts and losses.

*Two major types of shares are

(1) ordinary shares (common stock): which entitle the shareholder to share in the earnings of the

company as and when they occur, and to vote at the company's annual general meetings and

other official meetings, and

(2) Preference shares (preferred stock): which entitle the shareholder to a fixed periodic income

(interest) but generally do not give him or her voting rights. See also stock.

61. DEFINITION OF TRIAL BALANCE.

Answer: The act of totaling debit balances and credit balances to confirm that total debits equal

total credits.

62. DEFINITION OF LEDGER.

Answer: A ledger contains summarized financial information that is classified by assignment to a

specific account number using a Chart of Accounts.

63. DEFINITION OF ADJUSTMENT

Answer: increase or decrease to an account resulting from an adjusting journal entry . For

example, the accrual of wages at year-end will cause an increase in both salary expense and

salary payable.

Answer: changing an account balance because of some happening or event. For example, a

customer who returns merchandise will receive a credit adjustment to the account.

64. DEFINITION OF APPRECIATION?

Answer: Increase in the value of an asset through a rise in market price, appraised value, or

income earned, as compared to an earlier period. The opposite is Depreciation.

Answer: Increase in the value of one currency vs. another, without any change in official value

occurring. It results from growth in market demand under floating exchange rates rather than

official action such as a currency revaluation.

65. DIFFERENCE BETWEEN DEPRECIATION APPRECIATIONS?

Answer: Appreciation and depreciation both deal with asset value over time. Some assets, such

as real estate, bonds, and homes gain value as time goes on. These assets are said to appreciate.

Other assets, such as vehicles, manufacturing plants, and office equipment lose value over time

(depreciate). Appreciation/depreciation as a verb is the process of increasing value. For instance,

a piece of real estate might appreciate at 5% per year and a car might depreciate 10% a year.

De/Appreciation does not have to be linear. For instance, the moment you drive a new car off the

lot, it depreciates a considerable amount (say 10% of its value). The next year, though, the car

might only depreciate 5%. How one determines the rate of de/appreciation depends on your

accounting rules. For tax reasons, many companies have to abide by strict depreciation laws (For

instance, it would be unreasonable to depreciate a factory at 90% of its value in one year because

it would effects the company's profits and thus the taxes that company pays).

For most consumers, de/appreciation is based on the market value of the asset. Back to the car

example: the moment a new car is driven off the lot, it loses a lot of its value because it is then

consider a "used" car, so people won't pay as much for it.

66. WHAT IS FISCAL YEAR?

Answer: A 12-month period over which a company budgets its spending. A fiscal year does not

always begin in January and end in December; it may run over any period of 12 months. The

fiscal year is referred to by the date in which it ends.

67. DIFFERENCE BETWEEN FIXED AND VARIABLE COSTS?

Answer: Fixed costs are expenses whose total does not change in proportion to the activity of a

business, within the relevant time period. For example, a retailer must pay rent and utility bills

irrespective of sales

Variable costs by contrast change in relation to the activity of a business such as sales or

production volume. In the example of the retailer, variable costs may primarily be composed of

inventory (goods purchased for sale), and the cost of goods is therefore almost entirely variable.

In manufacturing, direct material costs are an example of a variable cost.

Along with variable costs, fixed costs make up one of the two components of total cost. In the

most simple production function, total cost is equal to fixed costs plus variable costs.

68. DEFINITION OF MEMORANDUM OF ASSOCIATION?

Answer: The memorandum of association of a company, often simply called the memorandum

(and then often capitalized as an abbreviation for the official name, which is a proper noun and

usually includes other words), is the document that governs the relationship between the

company and the outside. It is one of the documents required to incorporate a company in the

United Kingdom, Ireland, India, Bangladesh, Pakistan and Sri Lanka, and is also used in many of

the common law jurisdictions of the Commonwealth.

Answer: A Memorandum of Association (MOA) is a legal document prepared in the formation

and registration process of a limited liability company to define its relationship with

shareholders. The MOA is accessible to the public and describes the company's name, physical

address of registered office, names of shareholders and the distribution of shares. The MOA and

the Articles of Association serve as the constitution of the company. The MOA is not applied in

the U.S. but is a legal requirement for limited liability companies in European countries

including the United Kingdom, France and Netherlands, as well as some Commonwealth

nations.

69. DEFINITION OF ARTICLES OF ASSOCIATION?

Answer: A document describing the purpose, place of business, and details of a non-profit

organization.

Answer: A document that specifies the regulations for a company's operations. The articles of

association define the company's purpose and lays out how tasks are to be accomplished within

the organization, including the process for appointing directors and how financial records will be

handled.

70. WHAT KINDS OF TERMS INCLUDED IN ARTICLES OF ASSOCIATION?

The Articles can cover a medley of topics, not all of which is required in a country's law.

Although all terms are not discussed, they may cover:

* The issuing of shares (also called stock), different voting rights attached to different classes of

shares

* valuation of intellectual rights, say, the valuations of the IPR of one partner and, in a similar

way as how we value real estate of another partner

* The appointments of directors - which shows whether a shareholder dominates or shares

equality with all contributors

* Directors meetings - the quorum and percentage of vote

* Management decisions - whether the board manages or a founder

* Transferability of shares - assignment rights of the founders or other members of the company

do

* Special voting rights of a Chairman and his/her mode of election

* The dividend policy - a percentage of profits to be declared when there is profit or otherwise

* Winding up - the conditions, notice to members

* Confidentiality of know-how and the founders' agreement and penalties for disclosure

* First right of refusal - purchase rights and counter-bid by a founder.

71. DEFINITION OF MEMORANDUM OF AGREEMENT?

Answer: A memorandum of agreement (MOA) or cooperative agreement is a document written

between parties to cooperatively work together on an agreed upon project or meet an agreed

objective. The purpose of an MOA is to have a written understanding of the agreement between

parties.

An MOA is a good tool to use for many heritage projects. It can be used between agencies, the

public and the federal or state governments, communities, anQ : definition of resident company?

Answer: Entity treated by the jurisdiction, in which it is registered or incorporated or conducts its

business, as resident for exchange control and/or tax purposes

72. DEFINITION OF NONRESIDENT COMPANY?

Answer: That is incorporated in a jurisdiction as non-resident for tax purposes.

Answer: A company treated by the jurisdiction in which it is incorporated as non-resident for tax

purposes or exchange control purposes or both and MOA lays out the ground rules of a positive

cooperative effort.

73. DEFINITION OF SALES TAX?

Answer: A sales tax is a consumption tax, usually paid by the consumer at the point of purchase,

itemized separately from the base price, for certain goods and services. The tax amount is usually

calculated by applying a percentage rate to the taxable price of a sale.

74. DEFINITION OF PURCHASE TAX?

Answer: A tax that is added to the price of goods sold in shops, but not on basic goods that

people need to buy, that the owner of the shop must pay to the government

75. DEFINITION OF EXCISE TAX?

Answer: An indirect tax charged on the sale of a particular good.

Answer: An excise tax is a tax on use or consumption of certain products. Excise taxes are

sometimes included in the price of a product, such as motor fuels, cigarettes, and alcohol. Excise

taxes may also be imposed on some activities, like gambling. Excise taxes may be imposed by

the federal government or by a state.

76. DEFINITION OF USE TAX?

Answer: Use tax is levied when the products are purchased from a different state paying the sales

tax to that state. This tax compensates the state where the goods are finally put to use, the loss it

has suffered because of the purchase from a different state.