01. Definition Of Accounting: the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results there of. 02. Book Keeping: It is mainly concerned with recording of financial data relating to the business operations in a significant and orderly manner. Concepts of accounting: Separate entity concept Going concern concept Money measurement concept Cost concept Dual aspect concept Accounting period concept Periodic matching of costs and revenue concept Realization concept. Conventions of Accounting Conservatism Full disclosure Consistency D materiality. Systems of bookkeeping Single entry system Double entry system Systems of accounting Cash system accounting Mercantile system of accounting. Principles of accounting Personal a/c: Debit the receiver Credit the giver Real a/c: Debit what comes in Credit what goes out Nominal a/c: Debit all expenses and losses Credit all gains and incomes 08. 09. Meaning of journal: Journal means chronological record of transactions. Meaning of ledger: Ledger is a set of accounts. It contains all accounts of the business enterprise whether real, nominal, personal. Posting: It means transferring the debit and credit items from the journal to their respective accounts in the ledger. Trial balance: Trial balance is a statement containing the various ledger balances on a particular date.

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Credit note: The customer when returns the goods get credit for the value of the goods returned. A credit note is sent to him intimating that his a/c has been credited with the value of the goods returned. Debit note: When the goods are returned to the supplier, a debit note is sent to him indicating that his a/c has been debited with the amount mentioned in the debit note. Contra entry: Which accounting entry is recorded on both the debit and credit side of cashbook is known as the contra entry the

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Petty cash book: Petty Cash is maintained by business to record petty cash expenses of the business, such as postage, cartage, stationery, etc. Promissory Note: An instrument in writing containing an unconditional undertaking Signed by the maker, to pay certain sum of money only to or to the order of a certain person or to the barer of the instrument. Cheque: A bill of exchange drawn on a specified banker and payable on demand. Stale Cheque: A stale cheque means not valid of cheque that means more than six months the cheque is not valid. Bank Reconciliation Statement: It is a statement reconciling the balance as shown by the bank passbook and the balance as shown by the Cash Book. Obj: to know the difference & pass necessary correcting, adjusting entries in the books. Matching concept: Matching means requires proper matching of expense with the revenue. Capital Income: The term capital income means an income which does not grow out of pertain to the running of the business proper. or

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17. 18.

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21. 22.

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Revenue Income: The income, which arises out of and in the course of the regular business transactions of a concern. Capital Expenditure: It means an expenditure, which has been incurred for the purpose of obtaining a long-term advantage for the business. Revenue Expenditure: An expenditure that incurred in the course of regular business transactions of a concern. Differed Revenue Expenditure: An expenditure, which is incurred during an accounting period but is applicable further periods also. Eg: heavy advertisement. Bad Debts: Bad debts denote the amount lost from debtors to whom the goods were sold on credit. Depreciation: Depreciation denotes gradually and permanent decrease in the value of asset due to wear and tear, technology changes, laps of time and accident. Fictitious Assets: These are assets not represented by tangible possession or property. Examples of preliminary expenses, discount on issue of shares, debit balance in the profit and loss account when shown on the assets side in the balance sheet. Intangible Assets: Intangible assets mean the assets which is not having the physical appearance. And its have the real value, it shown on the assets side of the balance sheet.

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Accrued Income: Accrued income means income which has been earned by the business during the accounting year but which has not yet been due and, therefore, has not been received. Out standing Income: Outstanding Income means income which has become due accounting year but which has not so far been received by the firm. during the

32.

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Suspense Account: the suspense account is an account to which the difference in the trial balance has been put temporarily. Depletion: It implies removal of an available but not replaceable source, Such as extracting coal from a coal mine. Amortization: The process of writing of intangible assets is term as amortization. Dilapidations: The term dilapidations to damage done to a building or other property during tenancy. Capital Employed: The term capital employed means sum of total long-term funds employed in the business. i.e. (share capital+ reserves & surplus +long term loans (non business assets + fictitious assets)

34.

35. 36.

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38. Equity Shares: Those shares which are not having pref. rights are called equity shares. 39. Pref.Shares: Those shares which are carrying the pref.rights is called pref. shares Pref.rights in respect of fixed dividend. Pref.right to repayment of capital in the event of winding up of the company. 40. 41. Leverage: It is a force applied at a particular point to get the desired result. Operating leverage: The operating leverage takes place when a changes in revenue changes in EBIT. greater

42.

Financial leverage: It is nothing but a process of using debt capital to increase the rate of return on equity Combine leverage: it is used to measure of the total risk of the firm = operating risk + financial risk. Joint venture: A joint venture is an association of two or more the persons who combined for the execution of a specific transaction and divide the profit or loss their of an agreed ratio. Partnership: Partnership is the relation b/w the persons who have agreed to share the profits of business carried on by all or any of them acting for all. Factoring: It is an arrangement under which a firm (called borrower) receives against its receivables, from a financial institutions (called factor) advances

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47. 48.

Capital Reserve: The reserve which transferred from the capital gains is called capital reserve. General Reserve: The reserve which is transferred from normal profits of the firm is general reserve called

49.

Free Cash: The cash not for any specific purpose free from any encumbrance like cash.

surplus

50.

Minority Interest: Minority interest refers to the equity of the minority shareholders in subsidiary company.

a

51.

Capital Receipts: capital receipts may be defined as non-recurring receipts from the owner of the business or lender of the money crating a liability to either of them. Revenue Receipts: Revenue receipts may defined as A recurring receipts against sale of goods in the normal course of business and which generally the result of the trading activities. Meaning of Company: A company is an association of many persons who contribute money or moneys worth to common stock and employs it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company. Types of a company: Statutory companies Government company Foreign company Registered companies: Companies limited by shares Companies limited by guarantee Unlimited companies D. Private company E. Public company Private company: A private co. is which by its AOA: Restricts the right of the members to transfer of shares Limits the no. Of members 50. Prohibits any Invitation to the public to subscribe for its shares or debentures. Public company: A company, the articles of association of which does not contain the requisite restrictions to make it a private limited company, is called a public company. Characteristics of a company: Voluntary association Separate legal entity Free transfer of shares Limited liability Common seal Perpetual existence. Formation of company: Promotion Incorporation Commencement of business Equity share capital: The total sum of equity shares is called equity share capital. Authorized share capital: it is the maximum amount of the share capital, which a company can raise for the time being. Issued capital: It is that part of the authorized capital, which has been allotted to the subscriptions. public for

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Subscribed capital: it is the part of the issued capital, which has been allotted to the public.

63.

Called up capital: It has been portion of the subscribed capital, which has been called up by the company. Paid up capital: It is the portion of the called up capital against which payment has been received. Debentures: Debenture is a certificate issued by a company under its seal debt due by it to its holder Cash Profit: Cash profit is the profit it is occurred from the cash sales Deemed public Ltd. Company: A private company is a subsidiary company to public company it satisfies the following terms/conditions Sec 3(1)3: Having minimum share capital 5 lakhs Accepting investments from the public No restriction of the transferable of shares No restriction of no. Of members. Accepting deposits from the investors Secret reserves: secret reserves are reserves the existence of which does not appear on the face of balance sheet. In such a situation, net assets position of the business is stronger than that disclosed by the balance sheet. These reserves are crated by: Excessive dep.of an asset, excessive over-valuation of a liability. Complete elimination of an asset, or under valuation of an asset. Provision: Provision usually means any amount written off or retained by way of providing depreciation, renewals or diminutions in the value of assets or retained by way of providing for any known liability of which the amount can not be determined with substantial accuracy. Reserve: The provision in excess of the amount considered necessary for the purpose it was originally made is also considered as reserve Provision is charge against profits while reserves is an appropriation of profits Creation of reserve increase proprietors fund while creation of provisions decreases his funds in the business. Reserve Fund: The term reserve fund means such reserve against which clearly etc. investment acknowledging a

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Undisclosed Reserves: Sometimes a reserve is created but its identity is merged with some other a/c or group of accounts so that the existence of the reserve is not known such reserve is called an undisclosed reserve. Finance Management: financial management deals with procurement of funds and their effective utilization in business. Objectives Of Financial Management: Financial management having two objectives that Is: Profit maximization: The finance manager has to make his decisions in a manner so that the profits of the concern are maximized. Wealth maximization: Wealth maximization means the objective of a firm should be to maximize its value or wealth, or value of a firm is represented by the market price of its common stock. Functions of financial manager: Investment decision Dividend decision

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Finance decision Cash management decisions Performance evaluation Market impact analysis

Time value of money: The time value of money means that worth of a rupee received today is different from the worth of a rupee to be received in future. Capital structure: It refers to the mix of sources from where the long-term funds required in a business may be raised; in other words, it refers to the proportion of debt, preference capital and equity capital. Optimum capital structure: capital structure is optimum when the firm has a combination of equity and debt so that the wealth of the firm is maximum. Wacc: It denotes weighted average cost of capital. It is defined as the overall cost of computed by reference to the proportion of each component of capital as weights. capital

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Financial break-even point: it denotes the level at which a firms EBIT is just sufficient to cover interest and preference dividend. Capital budgeting: capital budgeting involves the process of decision making with regard to investment in fixed assets. Or decision making with regard to investment of money in long-term projects. Pay back period: Payback period represents the time period required for complete recovery of the initial investment in the project. ARR: Accounting or average rate of return means the average annual yield on the project. NPV: The net present value of an investment proposal is defined as the sum of the present values of all future cash in flows less the sum of the present values of all cash out flows associated with the proposal. Profitability Index: where different investment proposal each involving different initial investments and cash inflows are to be compared. IRR: internal rate of return is the rate at which the sum total of discounted cash inflows equals the discounted cash out flow. Treasury Management: financial risk in business. It means it is defined as the efficient management of liquidity and

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Concentration Banking: It means identify locations or places where customers are placed and open a local bank a/c in each of these locations and open local collection canter. Marketable Securities: Surplus cash can be invested in short term instruments in order to earn interest. Ageing Schedule: In a ageing schedule the receivables are classified according to their age. Maximum Permissible Bank Finance (MPBF): it is the maximum amount that banks can lend a borrower towards his working capital requirements.

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Commercial Paper: A cp is a short term promissory note issued by a company, negotiable by endorsement and delivery, issued at a discount on face value as may be determined by the issuing company. Bridge Finance: It refers to the loans taken by the company normally from a commercial banks for a short period pending disbursement of loans sanctioned by the financial institutions. Venture Capital: It refers to the financing of high-risk ventures promoted by new qualified entrepreneurs who require funds to give shape to their ideas. Debt Securitization: It is a mode of financing, where in securities are issued on the basis of a package of assets (called asset pool). Lease Financing: Leasing is a contract where one party (owner) purchases assets and permits its views by another party (lessee) over a specified period

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Trade Credit: business.

It represents credit granted by suppliers of goods, in the normal course of

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Over Draft: Under this facility a fixed limit is granted within which the borrower allowed to overdraw from his account. Cash credit: It is an arrangement under which a customer is allowed an advance up to certain limit against credit granted by bank. Clean overdraft: It refers to an advance by way of overdraft facility, but not back by any tangible security. Share capital: The sum total of the nominal value of the shares of a company is called share capital. Funds Flow Statement: It is the statement deals with the financial resources for running business activities. It explains how the funds obtained and how they used. Sources of funds: There are two sources of funds Internal sources and external sources.

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Internal source: Funds from operations is the only internal sources of funds and some important points add to it they do not result in the outflow of funds Depreciation on fixed assets (b) Preliminary expenses or goodwill written off, Loss on sale of fixed assets Deduct the following items, as they do not increase the funds: Profit on sale of fixed assets, profit on revaluation Of fixed assets External sources: 104. Funds from long-term loans Sale of fixed assets Funds from increase in share capital

Application of funds: (a) Purchase of fixed assets (b) Payment of dividend (c)Payment of tax liability (d) Payment of fixed liability

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ICD (Inter corporate deposits): Companies can borrow funds for a short period. For example 6 months or less from another company which have surplus liquidity. Such Deposits made by one company in another company are called ICD.

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Certificate of deposits: The CD is a document of title similar to a fixed deposit receipt issued by banks there is no prescribed interest rate on such CDs it is based on the prevailing market conditions. Public deposits: It is very important source of short term and medium term finance. The company can accept PD from members of the public and shareholders. It has the maturity period of 6 months to 3 years. Euro issues: The euro issues means that the issue is listed on a European stock Exchange. The subscription can come from any part of the world except India. GDR (Global depository receipts): A depository receipt is basically a negotiable certificate, dominated in us dollars that represents a non-US company publicly traded in local currency equity shares. ADR (American depository receipts): Depository receipt issued by a company in the USA are known as ADRs. Such receipts are to be issued in accordance with the provisions stipulated by the securities Exchange commission (SEC) of USA like SEBI in India Commercial banks: Commercial banks extend foreign currency loans for international operations, just like rupee loans. The banks also provided overdraft. Development banks: It offers long-term and medium term loans including foreign currency loans. International agencies: International agencies like the IFC,IBRD,ADB,IMF etc. provide indirect assistance for obtaining foreign currency. Seed capital assistance: The seed capital assistance scheme is desired by the IDBI for professionally or technically qualified entrepreneurs and persons possessing relevant experience and skills and entrepreneur traits. Unsecured loans: It constitutes a significant part of long-term finance available to an enterprise. Cash flow statement: It is a statement depicting change in cash position from one period to another. Sources of cash: Internal sources Depreciation Amortization Loss on sale of fixed assets Gains from sale of fixed assets Creation of reserves External sources Issue of new shares Raising long term loans

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Short-term borrowings Sale of fixed assets, investments Application of cash: Purchase of fixed assets Payment of long-term loans Decrease in deferred payment liabilities Payment of tax, dividend Decrease in unsecured loans and deposits Budget: It is a detailed plan of operations for some specific future period. It is an estimate prepared in advance of the period to which it applies. Budgetary control: It is the system of management control and accounting in which all operations are forecasted and so for as possible planned ahead, and the actual results compared with the forecasted and planned ones. Cash budget: It is a summary statement of firms expected cash inflow and outflow over a specified time period. Master budget: A summary of budget schedules in capsule form made for the purpose of presenting in one report the highlights of the budget forecast. Fixed budget: It is a budget, which is designed to remain unchanged irrespective of the level of activity actually attained. Zero-base-budgeting: It is a management tool which provides a systematic method for evaluating all operations and programs, current of new allows for budget reductions and expansions in a rational manner and allows reallocation of source from low to high priority programs. Goodwill: The present value of firms anticipated excess earnings. BRS: It is a statement reconciling the balance as shown by the bank pass book and balance shown by the cash book. Objective of BRS: The objective of preparing such a statement is to know the causes of difference between the two balances and pass necessary correcting or adjusting entries in the books of the firm. Responsibilities of accounting: Responsibilities for costs. It is a system of control by delegating and locating the

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Profit centre: A centre whose performance is measured in terms of both the expense incurs and revenue it earns. Cost centre: A location, person or item of equipment for which cost may be ascertained and used for the purpose of cost control. Cost: The amount of expenditure incurred on to a given thing.

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Cost accounting: It is thus concerned with recording, classifying, and summarizing costs for determination of costs of products or services planning, controlling and reducing such costs and furnishing of information management for decision making.

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Elements of cost: Material Labour Expenses Overheads Components of total costs: Prime cost Factory cost Total cost of production Total c0st

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Prime cost: It consists of direct material direct labour and direct expenses. It is also known as basic or first or flat cost. Factory cost: It comprises prime cost, in addition factory overheads which include cost of indirect material indirect labour and indirect expenses incurred in factory. This cost is also known as works cost or production cost or manufacturing cost. Cost of production: In office and administration overheads are added to factory cost, office cost is arrived at. Total cost: Selling and distribution overheads are added to total cost of production to get the total cost or cost of sales. Cost unit: A unit of quantity of a product, service or time in relation to which costs ascertained or expressed. Methods of costing: Job costing Contract costing Process costing Operation costing Operating costing Unit costing Batch costing. Techniques of costing: Marginal costing Direct costing Absorption costing Uniform costing. may be

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Standard costing: Standard costing is a system under which the cost of the product is determined in advance on certain predetermined standards. Marginal costing: It is a technique of costing in which allocation of expenditure to production is restricted to those expenses which arise as a result of production, i.e., materials, labour, direct expenses and variable overheads.

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Derivative: Derivative is product whose value is derived from the value of one or more basic variables of underlying asset. Forwards: A forward contract is customized contracts between two entities were settlement takes place on a specific date in the future at todays pre agreed price. Futures: A future contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Future contracts are standardized exchange traded contracts. Options: An option gives the holder of the option the right to do some thing. The option holder option may exercise or not. Call option: A call option gives the holder the right but not the obligation to buy an asset by a certain date for a certain price. Put option: A put option gives the holder the right but not obligation to sell an asset by a certain date for a certain price. Option price: Option price is the price which the option buyer pays to the option seller. It is also referred to as the option premium. Expiration date: The date which is specified in the option contract is called expiration date. European option: It is the option at exercised only on expiration date it self. Basis: Basis means future price minus spot price.

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Cost of carry: The relation between future prices and spot prices can be summarized in terms of what is known as cost of carry. Initial Margin: The amount that must be deposited in the margin a/c at the time of first entered into future contract is known as initial margin. Maintenance Margin: This is some what lower than initial margin. Mark to Market: In future market, at the end of the each trading day, the margin a/c is adjusted to reflect the investors gains or loss depending upon the futures selling price. This is called mark to market. Baskets: Basket options are options on portfolio of underlying asset. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a pre agreed formula. Impact cost: impact cost is cost it is measure of liquidity of the market. It reflects the costs faced when actually trading in index. Hedging: Hedging means minimize the risk. Capital market: Capital market is the market it deals with the long term investment funds. It consists of two markets 1.primary market 2.secondary market. Primary market: Those companies which are issuing new shares in this market. It is also called new issue market.

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Secondary market: Secondary market is the market where shares buying and selling. In India secondary market is called stock exchange. Arbitrage: It means purchase and sale of securities in different markets in order to profit from price discrepancies. In other words arbitrage is a way of reducing risk of loss caused by price fluctuations of securities held in a portfolio. Meaning of ratio: Ratios are relationships expressed in mathematical terms between figures which are connected with each other in same manner. Activity ratio: It is a measure of the level of activity attained over a period. Mutual Fund: A mutual fund is a pool of money, collected from investors, and is invested according to certain investment objectives. Characteristics of Mutual Fund : Ownership of the MF is in the hands of the of the investors MF managed by investment professionals The value of portfolio is updated every day Advantage of MF to Investors: Portfolio diversification Professional management Reduction in risk Reduction of transaction casts Liquidity Convenience and flexibility Net asset value: The value of one unit of investment is called as the Net Asset Value. Open-Ended Fund: Open ended funds means investors can buy and sell units of fund, at NAV related prices at any time, directly from the fund this is called open ended fund. For ex; unit 64 Close Ended Funds: Close ended funds means it is open for sale to investors for a specific period, after which further sales are closed. Any further transaction for buying the units or repurchasing them, happen, in the secondary markets. Dividend Option: Investors who choose a dividend on their investments, will receive dividends from the MF, as when such dividends are declared. Growth Option : Investors who do not require periodic income distributions can be choose the growth option. Equity Funds: Equity funds are those that invest pre-dominantly in equity shares of company. Types of Equity Funds: Simple equity funds Primary market funds Sectoral funds Index funds Sectoral Funds : Sectoral funds choose to invest in one or more chosen sectors of the equity markets. Index Funds: The fund manager takes a view on companies that are expected to perform well, and invests in these companies Debt Funds: The debt funds are those that are pre-dominantly invest in debt securities. Liquid Funds: The debt funds invest only in instruments with maturities less than one year. Gilt Funds: Gilt funds invests only in securities that are issued by the GOVT. and therefore does not carry any credit risk. Balanced Funds: Funds that invest both in debt and equity markets are called balanced funds.

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Sponsor: Sponsor is the promoter of the MF and appoints trustees, custodians and the AMC with prior approval of SEBI . Trustee: Trustee is responsible to the investors in the MF and appoint the AMC for managing the investment portfolio. AMC: The AMC describes Asset Management Company, it is the business face of the MF, as it manages all the affairs of the MF. R & T Agents: The R&T agents are responsible for the investor servicing functions, as they maintain the records of investors in MF. Custodians: Custodians are responsible for the securities held in the mutual funds portfolio. Scheme Take Over: If an existing MF scheme is taken over by the another AMC, it is called as scheme take over. Meaning Of Load: Load is the factor that is applied to the NAV of a scheme to arrive at the price. Market Capitalization: Market capitalization means number of shares issued multiplied with market price per share. Price Earning Ratio : The ratio between the share price and the post tax earnings of company is called as price earning ratio. Dividend Yield: The dividend paid out by the company, is usually a percentage of the face value of a share. Market Risk: It refers to the risk which the investor is exposed to as a result of adverse movements in the interest rates. It also referred to as the interest rate risk. Re-investment risk: It the risk which an investor has to face as a result of a fall in the interest rates at the time of reinvesting the interest income flows from the fixed Income security.

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Call Risk: Call risk is associated with bonds have an embedded call option in them. This option hives the issuer the right to call back the bonds prior to maturity. Credit Risk: Credit risk refers to the probability that a borrower could default on a commitment to repay debt or band loans Inflation Risk: Inflation risk reflects the changes in the purchasing power of the cash flows resulting from the fixed income security. Liquid Risk: It is also called market risk, it refers to the ease with which bonds could be traded in the market. Drawings: Drawings denotes the money withdrawn by the proprietor from the business for his personal use. Outstanding Income: Outstanding Income means income which has become due during the accounting year but which has not so far been received by the firm. Outstanding Expenses: Outstanding Expenses refer to those expenses which have become due during the accounting period for which the Final Accounts have been prepared but have not yet been paid.

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Closing Stock: The term closing stock means goods lying unsold with the businessman at the end of the accounting year. Methods of depreciation: Unirorm charge methods: Fixed installment method Depletion method Machine hour rate method. Declining charge methods: Diminishing balance method Sum of years digits method Double declining method Other methods : Group depreciation method Inventory system of depreciation Annuity method Depreciation fund method Insurance policy method.

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Accrued Income: Accrued Income means income which has been earned by the business during the accounting year but which has not yet become due and, therefore, has not been received. Gross profit ratio: It indicates the efficiency of the production/trading operations. Formula : Gross profit ------------------Net sales X100

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Net profit ratio: it indicates net margin on sales Formula: Net profit --------------- X 100 Net sales

209.

Return On Share Holders Funds : It indicates measures earning power of equity capital. Formula : Profits available for Equity shareholders ----------------------------------------------X 100

Average Equity Shareholders Funds 210. Earning per Equity share (EPS): It shows the amount of earnings attributable to each equity share. Formula : profits available for Equity shareholders ----------------------------------------------

Number of Equity shares

211.

Dividend Yield Ratio: It shows the rate of return to shareholders in the form of dividends based in the market price of the share Formula : Dividend per share ---------------------------X100

Market price per share 212. Price Earning Ratio: It a measure for determining the value of a share. May also be used to measure the rate of return expected by investors. Formula : Market price of share(MPS) ------------------------------X 100

Earning per share (EPS) 213. Current Ratio: It measures short-term debt paying ability. Formula : Current Assets -----------------------Current Liabilities 214. Debt-Equity Ratio: It indicates the percentage of funds being financed through borrowings; a measure of the extent of trading on equity. Formula : Total Long-term Debt --------------------------Shareholders funds 215. Fixed Assets Ratio: This ratio explains whether the firm has raised adepuate long-term funds to meet its fixed assets requirements. Formula Fixed Assets ------------------Long-term Funds 216 . Quick Ratio: The ratio termed as liquidity ratio. The ratio is ascertained y comparing the liquid assets to current liabilities. Formula : Liquid Assets

-----------------------Current Liabilities

217.

Stock turnover Ratio: The ratio indicates whether investment in inventory in efficiently used or not. It, therefore explains whether investment in inventory within proper limits or not.

Formula:

cost of goods sold -----------------------Average stock

218.

Debtors Turnover Ratio: The ratio the better it is, since it would indicate that debts are being collected more promptly. The ration helps in cash budgeting since the flow of cash from customers can be worked out on the basis of sales. Formula: Credit sales ------------------Average Accounts Receivable

219.

Creditors Turnover Ratio: It indicates the speed with which the payments for credit purchases are made to the creditors. Formula: Credit Purchases ----------------------Average Accounts Payable

220.

Working Capital Turnover Ratio: It is also known as Working Capital Leverage Ratio. This ratio Indicates whether or not working capital has been effectively utilized in making sales. Formula: Net Sales

---------------------------Working Capital 221. Fixed Assets Turnover Ratio: This ratio indicates the extent to which the investments in fixed assets contributes towards sales. Formula: Net Sales

-------------------------Fixed Assets 222. Pay-out Ratio: This ratio indicates what proportion of earning per share has been used for paying dividend. Formula: Dividend per Equity Share

--------------------------------------------X100 Earning per Equity share

223.

Overall Profitability Ratio: It is also called as Return on Investment (ROI) or Return on Capital Employed (ROCE) . It indicates the percentage of return on the total capital employed in the business.

Formula : Operating profit ------------------------X 100 Capital employed The term capital employed has been given different meanings a.sum total of all assets whether fixed or current b.sum total of fixed assets, c.sum total of long-term funds employed in the business, i.e., share capital +reserves &surplus +long term loans (non business assets + fictitious assets). Operating profit means profit before interest and tax 224. Fixed Interest Cover Ratio: The ratio is very important from the lenders point of view. It indicates whether the business would earn sufficient profits to pay periodically the interest charges. Formula : Income before interest and Tax --------------------------------------Interest Charges 225. Fixed Dividend Cover Ratio: This ratio is important for preference shareholders entitled to get dividend at a fixed rate in priority to other shareholders. Formula : Net Profit after Interest and Tax -----------------------------------------Preference Dividend 226. Debt Service Coverage ratio: This ratio is explained ability of a company to make payment of principal amounts also on time. Formula : Net profit before interest and tax ---------------------------------------1-Tax rate

Interest + Principal payment installment 227. Proprietary Ratio: It is a variant of debt-equity ratio . It establishes relationship between the proprietors funds and the total tangible assets. Formula : Shareholders funds ---------------------------Total tangible assets 228. Difference between joint venture and partner ship: In joint venture the business is carried on without using a firm name, In the partnership, the business is carried on under a firm name.

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In the joint venture, the business transactions are recorded under cash system In the partnership, the business transactions are recorded under mercantile system. In the joint venture, profit and loss is ascertained on completion of the venture In the partner ship , profit and loss is ascertained at the end of each year. In the joint venture, it is confined to a particular operation and it is temporary. In the partnership, it is confined to a particular operation and it is permanent. Meaning of Working Capital: The funds available for conducting day to day operations of an enterprise. Also represented by the excess of current assets over current liabilities. Concepts of accounting: Business entity concepts: According to this concept, the business is treated as a separate entity distinct from its owners and others. Going concern concept: According to this concept, it is assumed that a business has a reasonable expectation of continuing business at a profit for an indefinite period of time. Money measurement concept: This concept says that the accounting records only those transactions which can be expressed in terms of money only. Cost concept: According to this concept, an asset is recorded in the books at the price paid to acquire it and that this cost is the basis for all subsequent accounting for the asset. Dual aspect concept: In every transaction, there will be two aspects the receiving aspect and the giving aspect; both are recorded by debiting one accounts and crediting another account. This is called double entry. Accounting period concept: It means the final accounts must be prepared on a periodic basis. Normally accounting period adopted is one year, more than this period reduces the utility of accounting data. Realization concept: According to this concepts, revenue is considered as being earned on the data which it is realized, i.e., the date when the property in goods passes the buyer and he become legally liable to pay. Materiality concepts: It is a one of the accounting principle, as per only important information will be taken, and un important information will be ignored in the preparation of the financial statement. Matching concepts: The cost or expenses of a business of a particular period are compared with the revenue of the period in order to ascertain the net profit and loss. Accrual concept: The profit arises only when there is an increase in owners capital, which is a result of excess of revenue over expenses and loss. Financial analysis: The process of interpreting the past, present, and future financial condition of a company. Income statement: An accounting statement which shows the level of revenues, expenses and profit occurring for a given accounting period. Annual report: The report issued annually by a company, to its share holders. it containing financial statement like, trading and profit & lose account and balance sheet. Bankrupt : A statement in which a firm is unable to meets its obligations and hence, it is assets are surrendered to court for administration Lease: Lease is a contract between to parties under the contract, the owner of the asset gives the right to use the asset to the user over an agreed period of the time for a consideration Opportunity cost : The cost associated with not doing something. Budgeting : The term budgeting is used for preparing budgets and other producer for planning, co-ordination, and control of business enterprise.

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Capital: The term capital refers to the total investment of company in money, tangible and intangible assets. It is the total wealth of a company. Capitalization: It is the sum of the par value of stocks and bonds out standings. Over capitalization: When a business is unable to earn fair rate on its outstanding securities. Under Capitalization: When a business is able to earn fair rate or over rate on it is outstanding securities. Capital gearing: The term capital gearing refers to the relationship between equity and long term debt. Cost of Capital: It means the minimum rate of return expected by its investment. Cash Dividend: The payment of dividend in cash Define the term accrual : Recognition of revenues and costs as they are earned or incurred. It includes recognition of transaction relating to assets and liabilities as they occur irrespective of the actual receipts or payments. Accrued Expenses: An expense which has been incurred in an accounting period but for which no enforceable claim has become due in what period against the enterprises. Accrued Revenue: Revenue which has been earned is an earned is an accounting period but in respect of which no enforceable claim has become due to in that period by the enterprise. Accrued liability: A developing but not yet enforceable claim by an another person which accumulates with the passage of time or the receipt of service or otherwise. it may rise from the purchase of services which at the date of accounting have been only partly performed and are not yet billable. Convention of Full disclosure: According to this convention, all accounting statements should be honestly prepared and to that end full disclosure of all significant information will be made. Convention of consistency: According to this convention it is essential that accounting practices and methods remain unchanged from one year to another. Define the term preliminary expenses: Expenditure relating to the formation of an enterprise. There include legal accounting and share issue expenses incurred for formation of the enterprise. Meaning of Charge : Charge means it is a obligation to secure an indebt ness. It may be fixed charge and floating charge. Appropriation : It is application of profit towards Reserves and Dividends. Absorption costing: A method where by the cost is determine so as to include the appropriate share of both variable and fixed costs. Marginal Cost: Marginal cost is the additional cost to produce an additional unit of a product. It is also called variable cost. What are the ex-ordinary items in the P&L a/c: The transaction which are not related to the business is termed as ex-ordinary transactions or ex-ordinary items. Egg:- profit or losses on the sale of fixed assets, interest received from other company investments, profit or loss on foreign exchange, unexpected dividend received.

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Share premium: The excess of issue of price of shares over their face value. It will be showed with the allotment entry in the journal, it will be adjusted in the balance sheet on the liabilities side under the head of reserves & surplus. Accumulated Depreciation: The total to date of the periodic depreciation charges on depreciable assets. Investment: Expenditure on assets held to earn interest, income, profit or other benefits. Capital: Generally refers to the amount invested in an enterprise by its owner. Ex; paid up share capital in corporate enterprise. Capital Work In Progress: Expenditure on capital assets which are in the process of construction as completion Convertible Debenture: A debenture which gives the holder a right to conversion wholly or partly in shares in accordance with term of issues. Redeemable Preference Share: The preference share that is repayable either after a fixed (or) determinable period (or) at any time dividend by the management. Cumulative Preference Shares : A class of preference shares entitled to payment of umulates dividends. Preference shares are always deemed to be cumulative unless they are expressly made non-cumulative preference shares. Debenture Redemption Reserve : A reserve created for the redemption of debentures at a future date. Cumulative Dividend: A dividend payable as cumulative preference shares which it unpaid cumulates as a claim against the earnings of a corporate before any distribution is made to the other shareholders. Dividend Equalization Reserve: A reserve created to maintain the rate of dividend in future years. Opening Stock: The term opening stock means goods lying unsold with the businessman in the beginning of the accounting year. This is shown on the debit side of the trading account. Closing Stock: The term Closing Stock includes goods lying unsold with the businessman at the end of the accounting year. The amount of closing stock is shown on the credit side of the trading account and as an asset in the balance sheet. Valuation Of Closing Stock: The closing stock is valued on the basis of Cost or Market price whichever is less principle. Contingency: A condition (or) situation the ultimate out comes of which gain or loss will be known as determined only as the occurrence or non occurrence of one or more uncertain future events. Contingent Asset: An asset the existence ownership or value of which may be known or determined only on the occurrence or non occurrence of one more uncertain future events. Contingent Liability: An obligation to an existing condition or situation which may arise in future depending on the occurrence of one or more uncertain future events.

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Deficiency : The excess of liabilities over assets of an enterprise at a given date is called deficiency. Deficit: The debit balance in the profit and loss a/c is called deficit. Surplus: Credit balance in the profit & loss statement after providing for proposed appropriation & dividend, reserves. Appropriation Assets: An account sometimes included as a separate section of the profit and loss statement showing application of profits towards dividends, reserves. Capital Redemption Reserve: A reserve created on redemption of the average cost:- the cost of an item at a point of time as determined by applying an average of the cost of all items of the same nature over a period. When weights are also applied in the computation it is termed as weight average cost. Floating Change: Assume change on some or all assets of an enterprise which are not attached to specific assets and are given as security against debt. Difference between Funds flow and Cash flow statement: A Cash flow statement is concerned only with the change in cash position while a funds flow analysis is concerned with change in working capital position between two balance sheet dates. A cash flow statement is merely a record of cash receipts and disbursements. While studying the short-term solvency of a business one is interested not only in cash balance but also in the assets which are easily convertible into cash. Difference Between the Funds flow and Income statement : A funds flow statement deals with the financial resource required for running the business activities. It explains how were the funds obtained and how were they used, Whereas an income statement discloses the results of the business activities, i.e., how much has been earned and how it has been spent. A funds flow statement matches the funds raised and funds applied during a particular period. The source and application of funds may be of capital as well as of revenue nature. An income statement matches the incomes of a period with the expenditure of that period, which are both of a revenue nature.

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Sample Placement Papers of your Dream Company

what is the diffrence between gross profit& net proffit? what is the journal?

capitaliq

one question dr mean debit cr mean credit but cr full form credit but dr full form debit that mean debit not word dr what the answer What is smallest 4 digit number? what is the difference between Purchase order and invoice what is suspence capital? Capital-IQ HDFC

Information on Cost accounting vs. Management accounting

What are the source of gaining long-term funds???? What are the limitations of gaining longterm funds??? What is an Acrual Interest? In which side of the Balance Sheet, it should be shown???? ICAI how is cost concept extension of on going concept? WHAT IS IFRS? WHAT IS IDEAL DEBT-EQITY RATIO BPO BPO

what is the finalisation of balancesheet and how it can be made Which Exchange determine Foreign Exchange/Currency Rate? Which Exchange determine Foreign ? hedge fund, hedging What cost-cutting measures have you implemented? differences between liabilities and assessts

when the money introduced in india what type of account appear on a post closing trial balance? a) income statement accounts b) balance sheet accounts c) cash flow accounts d) temporary owner's equity accounts What is the Difference between Rectification of Errors and Adjustment Entry ? What are the general Ledgers?

2.

What is bank reconcilation a/c what is profit maximisation what is a financial statement

Accenture

UBS

What is the Journal entry for advance payments and advance receipts from Debtors and creditors what is contigent liability and state some examples also. what is balance sheet, capital budgeting, financial statements, current ratio, profit maximization? UBS What is the formula of Debt Equity Ratio? Also define its importance in a firm. Capital secure should be shown in which side of the balance sheet??? ICAI ICAI

3.

why closing balance do not come in trial balance?if it is in which case it comes? what is the definition of derivative, what is a security? TDS is for claming purpose or for filing purpose. when does accounts receivable have a credit balance? whatis meant by contigent liability IQ

HDFC

why is TDS treated as an asset while preparing Balance sheet. What is the Meaning of Current ratio?

When Trial Balance match? what is the adjusting entry for wages posted twice? wages posted twice what is the entry for that? Genpact Genpact

4. Bank Overdraf is an Asset or a liability for a Bank? ICAI How is the Cost of Goods Calculated???? why should we do accounts in company WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE? Capital-IQ what is difference between depreciation and amortization ? principles of accounts what are the difference between bookkeeping and accounting ? WHY SHOULD WE PREPARE PROFIT & LOSS APPROPRIATION a/c??? Accenture what is the difference between shares & debentures What is a General Ledger Balance? How can it be arrieved at? whether cash book is a subsidiary book? What is mean by Tab Group in MS-Excel? IBM RBI ICAI

WHAT ENTRY SHOULD WE PASSED IN BOOK A PERSON HAVING SALARY BASIC 10000.00 HRA 4000 PF 1500.00 why opening stock posted in the credit side Who Invented Accountancy?? Capital-IQ

5. What steps to be taken at the time of implementation of Oracle ERP and please give the chart of accounts and links to be given Aster-Teleservices what is the accounting treatemnt for issuing material to a subcontractor on recovery basis? Entry for the settlement of loans? Entry for prepaid expenses? Wipro Wipro

what is journal entries for cheque dishonored? Difference Between Tax Invoice and reatail Invoice ? Explain the effect of closing stock on gross profit and net profit. comment on the financial health of their business. whatis mean by accured income? what is derivative? Capital-IQ Capital-IQ

what is balancesheet adjustment a/c. what is the use of this a/c in sap fico Reliance what is zero balance clearing a/c. why we r maintaining this a/c in sap fico Reliance what is inflation accounting What is put option, call option, mutual fund? What is audit,auditing? Wipro Wipro

Should I deduct TDS for Dyeing Charges in Garments Industry? If yes what is the percentage under which group it will come? 6. npv, arbitrage equity market capitalisation nav , npv hedge fund, hedging investment banking types of derivatives capital expenditure , revenue expenditure deferred revenue expenditure what is meant by derivatives Plz Give the Inventry Accounting Procedure 1.Domestic Purchases ( VAT,CST,& Excise) 2.Import Purchases ( Direct Expences & Excise ) 3.When Will the Price Diffrence Entry Happen? RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley RRDonnelley

4.Cash Discount & Trade Discount On Purchases? 5.Domestic Sales ( VAT,CST,& Excise) 6.Export Sales ( Customes ,Excise ) 7.Cash Discount & Trade Discount On Sales? Please let me know the journal entry for the below. "A" paid Rs.100 to "C" on behalf of "B" What are the legal entities that constitute your business? Does a legal entity have a seperate Federal Tax Id? In which country does a legal entity operate? In which currency does a legal entity operate? When does each legal entity's fiscal year begin? what are the fundamentals of book keeping What is Accounting? How to prepare the manual accounts? What are the manual accounts? What are the subsidary books? How to classify, summerising and posting accounts. What are basic and important stpes to take while preparing journal,ledger,cashbook, Bank book, Trailbalance, Trading and profit and loss a/c and Balance sheet.

what is crr when the money introduced in india What Is repo transaction What is Risk Assessment? what is the golden rules of accountancy ?withdrwal frm atm what will be the transaction ? what is ZBA hold & balance hold in banking? What is difference between NSE and BSE? Which company are include in NSE and which are include in BSE? How do i will cme to now that i have invested in NSE or BSE? Catalyst give narration of cash----a/c---Dr To cash What is Standard Cost? What is mean by ETDS Hindalco Cap-Gemini Syntel 7.

Please tell me the process of Selction of Junior Research Associate in Capitaliq(Intervie rounds&written test) where we have file E-returns in SAP FICO-CIN/Wtax? Wipro

If in a PO, the freight condition is mentioned as Air freight and the material is actually received by Road, how does the system check before making the necessary accounting entries?

8.

what are the balancesheet,profit& loss a/c,profit & loss aprrieation a/c format What is General Accounting What are the General Ledgers? Wat is pivot table What are the general ledgers can anyone provide me the Balance Sheet Items & P & L Items with Accounting Heads with Accounting codes? cany anyone explaing what are the functions of an Account Officer/Manager? can anyone provide me the Balance Sheet Items & Profit & Loss A/c Items & Accounting Heads with Accounting codes? pls send me capital iq quition paper pls, ihave 2mr interview thanks Diffrence between cost, financial and management accounting what is accounting standard? Genpact Mico TATA

what is the difference between cash system & mercantile system What is mean by Journalising ? What is Financial planning? Capital-IQ

9.

differed tax liability What is the meaning of Equity & Dedt Pls Explain Clearly What is capital market? method of preparing the trial balance ? what is the cost and financial accounting? what is double entry system ? what is the organisation chart for accounting and finance ? what is the nature of accounting function ? define accounting,scope of account , types of account ? Mellon

what is journal and ledgers ? differences between liabilities and assessts what is credit balance of bank define briefly??? What are the general Ledgers?

Prolect Prolect Genpact

In Accounts payable process in BPO, how is the due date calculated? It should be Invoice date+ payment terms or Receipt date of invoice + payment terms? Accenture what is derivaties, equities, and mutul fund shares journal entries BPO

10.

what is different between expenses (direct) and direct expenses? Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three Genpact Credit Paurchases Genpact

Machinery Rate is 12000/- and residual value is 2000/- and life span is 10yrs.Calculate the dep in Straight line method. Genpact New emlpoyee was joined on 15th Jan and salary paid on 28th Feb amt of Rs.20000/- and asked to give the Journal entry for the Month of Jan, Fed and March (His Monthly Salary is Rs.8000/-) Genpact Rent Paid Rs.12000/- (which is included for the whole year i.e Jan to Dec) and they have asked me to give Journal Entry for the Entry for the Month of Jan, Feb and March Genpact what type of account appear on a post closing trial balance? a) income statement accounts b) balance sheet accounts c) cash flow accounts d) temporary owner's equity accounts what does debit and credit mean in accounting and what is its underlying concept and its treatment. in the cash book dr means receipt nad credit means payment? is it correct? In p&l account where does miscellaneous expenses comes what is balance sheet? SBI

1. what is debenture? 2.Why company will issue shares? 3. What is audit? 4. What is the role of finance department? 5. What is mutual fund?

11.

What is the depreciation rate for computers? why should i hire you? what are your outside interest? what was your toughest decision you ever have to make? GE what do u mean by preliminary expenditure? what r they? where it is comes? what is the diffrance between fund flow statement and cash flow statement. Genpact What is private placement in Equity market ? Bank-Of-America HSBC

plz send me hsbs finance questions asked in the interview ans appitude also what is a reconcilation statement HP

why share capital shown in liability side of a balance sheet

12

What is Suspense A/c? What are Accounting Concept?

Mafoi Mafoi Mafoi

What is Working Capital Management ? Give the formula for it Can you tell me the closing stock entry? Satyam

HOW MANY TYPES OF ACCOUNT EXAMPLE PLS CAN PRE OPERATIVE EXPENSES BE CAPITALISED? IF YES, HOW CAN IT BE DONE? When determining turnover, do you first deduct all sales returns to come to an answer or is turnover the total sales without deductions. Please send the all account interview question to me what are the various questions asked on excel in an interview SBI Asian-Paints

Hi Actually Im Accounts Executive Currently I Have one Offer as a Stores & Purchase Accountant can you suggest it is good and what type of works will be there ?? what is stock divient Franklin-Templeton

Can anybody tell what is the link b/w reporate and inflation? How these parameters vary???

out standing salaries goes to whiich A/C I mean personal(or) real(or)nominal a/c what is the difference between cash flow and funds flow What is personal Account?

13. WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE? Capital-IQ what is the difference between cash flow and profit and loss account? What is the Difference between Rectification of Errors and Adjustment Entry ? What is the Casting ? What is the Accountancy ? Give the Answer in one sentence. What are the Trading A/c Components and let explain about Trading account and Profit & Loss Account Focus what is the effect of repo rate what is BRS What is a cash flow statement what is trailbalance..? what can increase gearing? how to reduce axis bank emi Axis-Bank Wipro Capital-IQ Capital-IQ Capital-IQ

what is the Entry for Prepaid expenses? which side it come in balance sheet?

14.

Depreciation, What type of cost? Direct cost or Indirect cost? Which game is played only by women What is Cost Accounting SBI SBI

how could we reconcile the cash book balance with pass book balance by pass book Dr. balance with pass book method? what are adjusting entries? and why we are dioing it? what is the differance between Equity shares and preferance shares? Panacea

What do u mean by pass through expenses? give examples, how it will be accounted & billed? What is contingent liability? Syntel

what is cap & floor of call rates? what are the procedures of paying service tax and vat? Insight

15. WHICH ASSET IS DEPRICIATED IN TANGIBLE? WHAT WILL BE ENTRY IF COMPANY PURCHASE A DOG FOR WARE HOUSE? When is proposed divided a current Liability and when is it non-current liability? Why is it in the list of Current Capital Accounts? what amounts to appropriation of profits? When provision for taxation does not amount to appropriation of profits? Where does TDS payable & receivable appear in the books of accounts Professional fees of Rs.30000/- is paid to a consultant ABC & Co. please pass the necessary entry for the same Interest of Rs.30000/- is received from deposits Tds of Rs 7500/- is deducted by the bank please pass the necessary entry for the same Under which headings the following transaction appear in bank reconciliation as on 30.06.03 particulars Interest debited by bank Chq issued to suppliers not appearing in bank statement Chq deposited not appearing in bank statement Income not accounted in books appearing in bank statement An advance of Rs 10000/- is received from customer. pass necessary journal entries Name any 3 heads shown under assets side of balance sheet. Calculate the profit/loss on sale of the following assets as on 30th september 2000 cost of the asset on 01.05.95 50000/- Salvage Value 5000/- Method of depriciation & date WDV 15% sales of asset on 30.09.2000 Rs 25000/a) what are the rate of employees & company's contribution for PF & ESIC? b) what is the ceiling in case of ESI deductions? c) what are the due dates for paying ESI/PF Compute the following selling price for the follwing item: Basic cost CST @ 4% on basic cost freight & insurance Rs 200/- Margin @ 15% on selling price

16. What is the due date for paying monthly IT deductions, other than deductions towards salary

What is the due date for filing monthly & annual sales tax returns in karanataka

Compute the interest & TDS amount following transaction: Compute the sales tax amount on the following transactions: MRP rs 1000/- Sales Tax is 10% cess on sales tax is 5% Turnover tax is 1% on net turnover what is the entry passed for sales return (sales is on credit basis)? What is the TDS ratio applicable on professional fees? Can u please give me example of bonds? is National savings certificate a Bond? What do we mean by the term "Securities" when we say that "Govt injecting/sucking liquidity in/out of the system by buying/selling securities? why we use the term profit and loss account instead of profit or loss account what are the differences between Tally and Focus? what is the treatement of outstanding expenses in Tally accounting package? where it shown and what is its account type? What are the different payrolls? how we calculate the exmployee payroll? how we calculate the employee salaries details? Syntel

17.

Give me total Details of payroll calculation, payslip with examples. payroll calculation procedure explain completely? what are the payroll procedures? what is the order for cashflow statement Hewitt Capital-IQ

tell the ratio where the numerator and denominator should contain one from asset side and other from liabilities side Capital-IQ What are the difference between Cash Flow Statement and Fund flow Statement? please explain me fully. Can you give three examples/names of Public and Private Ltd companies? Syntel What is the difference between "Primary Market" and "Secondary Market"? Syntel what is debit card? n what is credit card? if it is a debit card what will be a transaction in personal account and if it is a credit card what will be the tranction in personal account I want to know how to get Appeared to the examination of State bank of India. And how can i find the question Book Series.

What is the uses of Ratio's in The Finanacial management? Explain it? What is difference between cash flow and funds flow? Any two difference of Trading and Profit and loss A/c Any Two difference Between Debenture and bonds? What is the Entry for Call in arrears? Syntel Syntel Syntel

IBM

18.

What do you mean by Amortization? What is Electronic clearances? Genpact Genpact

What is Accrual (Mercantile Vs Cash System of Accounting) why to differentiate between capital and revenue expenditure? what is the journal entry for bad debts? What is means by A/c in Accountancy ? What is the full form of Dr. and Cr. ? what is CDDs configuration Syntel

what is the meaning of (PDDs, DODs, CFRs,) based on understanding of the business process What is Share? Syntel

company's total overhead expense is containing which are the expenses? Definition of overhead expense. what is the difference between debit card and credit card Genpact

19. Where we have to take the Director's current account, wages a/c, Accruals, sales tax payable in Balancesheet what is leverage?how many types of leverages are there and explain what is contingent asset Genpact Capital-IQ

What is the full from of DR and CR ?

Adani

How to treat the provision for bad debts which appeared on the credit side of the P&L A/c? Wipro How to treat the provision for bad debts which appear on credit side of the p&L A/c. CapitalIQ can any one send me payables real time scenarious or any projects Briefly explain about Stok valuation. What is depreciation? What are the various methods thereof? What is Royalty Accounting? How it calculate? Give some example. What are the accounting conventions and Practices?

20.

What is the means of Limited.they are not asked about public limited or private limited or difference tehy asked only what is the limited what are the three basic acounting principles.what is account reconcilliation.what is portfolio management GE what is mean by Red herrting What is mean by Dis-investment Capital-IQ Capital-IQ

What is accounts recevable & acct. payble? How they are efect in real life accounts of the company? Genpact i need sbi bank clerk exam model question papers How can we post Salary, PF etc., can anybody tell me the entry what is the journal entry for tax refund? what is bank reconcilation? HSBC HSBC

what is the difference between credit and debit note? what is the meaning of derivative. Capital-IQ

21.

what is the difference between fund manager and portfolio manger What is Contra Entry? how to take print checks in tally what is the core accounts

Franklin-Templeton

SMS-Pharmaceuticals SMS-Pharmaceuticals

expense paid but the benefit not been received so far like deferred exp so can we consider it as a prepaid exp. L&T what is the system of accounting and banking in cooperative bank? define p&l approprate tell me about roll model as father tell about friendship Genpact Genpact Genpact

what is the difference between cost centre and bussiness centre? contiagent liabilty types of inventory define cost of goods sold define inventory Genpact Genpact Genpact Genpact

22.

How to calculate bank's turnover? diiffrence b/w provsion & reserve do you have debit and credit in balance sheet

HDFC

Capital-IQ Capital-IQ Capital-IQ

how did you know about capitaliq? what is the meaning of iq. What is provision and reserve and how u treat in account

How many methods are there in capital budgeting? what are those. Capital-IQ What is meaning of ficticious asset what is the meaning of empairment asset Capital-IQ Capital-IQ

what is the meaning of preliminary expenses and how you shown in balance sheet CapitalIQ What is the meaning of capital profite and capital reciet? both are same or any different are there? Capital-IQ wt is stock split, dividends, rights issues,mergers and acquisitions, and spinn offs? NessTechnologies what is corporate action? wt is the purpose and tpes of corporate actions? NessTechnologies WHAT IS F& O SEGMENT? what is cost of goods sold? What is the closing entry for outstanding amount? IBM

23.

What is suspense Account? What is Bank Reconcilation Statement? what is basic accounts rule?

IBM IBM Syntel

There is any new golden rule added with remain three? Why bank credited our all deposited?

Why do people call Genpact as Gunpat outside? What do you reply when they ask that What does Gunpat manufacture? Genpact what is accrual prepayment? Define capital A/c &revenue. Define golden rules. meaning of share capital and its entries e-Serve What is the diffrecnce between liabilities and owner's equity? ABN-AMRO

what is the procedure to get the duplicate Cform in case the original is lost in transit. WHAT IS THE MEANING OF BLUE CHIP COMPANY? what is the meaning of hedging? WHAT IS THE MEANING OF INDENTURE? Capital-IQ Capital-IQ Capital-IQ

WHAT IS THE MEANING OF CREDIT WORTHINESS?

Capital-IQ

Please answer the following question: "Your grandmother sends you a large check for your birthday, asking that you use the money to buy shares of stock in a company. She recommends that you review the company's financial statements before investing. What can a company's financial statements tell you about the investment potential of its stock?" Ans: Generally financial statement reflects the financial condition of the firm in terms of profit growth and sales.There are different type of financial ratio which can be calculated after seing the financial statement like Eps ratio tell ur how much co. can pays to its shareholder,other ratio are PE,Debt-Equity and many ratio are relyy impotant to evaluate company performance what is the meaning of LETTER OF CREDIT? What is mean by Debt Equity Ratio ? Capital-IQ

24.

What is the Accounting Treatment for Contingent Liability ? Why Closing Stock Not shown in Trial Balance? WHAT IS MEAN BY SHARE & DEBENTURE? WHAT IS THE DIFFERENCE BETWEEN THEM? How do u show Drawings In Trading Account ? Difference between Provision & Reserve? Difference between Accounts & Finance ? what is Current Accountant ? What is the Difference Between Retail Invoice & Tax Invoice? what is minority interest explain accounting concepts How to Prepar Balance sheet? Capital-IQ Capital-IQ

what does bpo means? why do u want to join bpo sector example irr What is the trial balance

Genpact Genpact

Capital-IQ

25.

What do you mean by Mutual Funds ? Types what is ADRs?

Capital-IQ Capital-IQ

which are company offering jobs in PORTFOLIO MANAGEMENT ? what is monetary polasy and how it is different from trade polacy? how it will impact on stockmarkets in India? What is the trade balance ,what is the Trailbalance, Where we show the Contingent Assets. what is inflation? what is Prime Brokerage? what is Reconciliation-NOSTRO,VOSTRO? UBS UBS UBS ITW-Signode

what is Credit derivatives,equity derivatives,SWAPS? what is futures and options? UBS

what is Derivative Documentation,Derivative Settlements,Derivative confirmation? what is pre settlements and post settlements in Derivatives? UBS

UBS

what is OTC derivatives and Depository Trust & Clearing Corporation (DTCC) ? what is Internal Revenue Service (IRS) and Certificate Of Deposit (CD)? UBS

UBS

26.

What do you mean by capital?

Define mortgage what is ADVANCE,DECLINE ratio. also explain how it helps the investor to predict the stock market movements? UBS why stock market goes to bearish mode when RBI hikes CRR rates? what is F B T? what is priority? what is surcharge? Perot-Systems UBS

what happens in the stockmarket when RBI changes the CRR rates(REPO RATES) Wipro Canu send me account aptitude questions Genpact

I am going to attend an interview for the post of Accounts Officer in NCMSL Co.(procurement co.),So pls help me for the interview. meaning of accounts payable what is accrual income ? most recently asked questions what is bank reconcilietion WNS Genpact

what are the point to see when calculating the Company Profit / Loss

27.

salary is which type of account?? how much percentage of shares of a company must be purchased so in order to start the company?? fictitious account is what type of account i.e real,nominal or personal account?? What is the different between each of the following. a) ordinary shares and preference shares b) called and uncalled capital c) bearer debentures and convertible notes d) floating charge and specific charge how to calculate the Current Ratio, Liquid Ratio & Operating Ratio What is MEan By Sundry? Why do call p&la/cas a P&l a/c ?, why not P{or}L a/c What is ment by MIS reporting? machinery is assets or liabilities Bank-Of-America

what is the meaning of accountant,accounting & accountancy & account? how is caluclation of over time (O.T) what is subsidiary book? what is journal? what is the meaning of double entry system & Double entry system? ICICI

28. what is genpact? Tell us about genpact? what is GE? Tell us about GE? Describe your ideal company,location and job? why we should hire you? why do you want to join our company(GE)? What is capital bugeting? Explain the methods of capital bugeting in detail? GE what is the usage of Acounting standard?, what is deferred tax?, what is operating Expenses and incomes?, what is the difference between subsidary and holding company? and what is right share and right issue? what is difference between cash and profit?, and why netprofit comes under capital account? ITC-Infotech What is cash profit? how can we calcute? are you a gay? Genpact

What is meant by Kpo?If possible tell me the process too? What are accounting standards? why debit notes and credit notes are passed? CTS TCS

Wat is the diff.between revenue and capital expenditure? Wat is meant by deffered revenue expenditure? TCS what do you meant auction? what is F & o segment? How to Calculate Turnover? what about your self What is Mean By Defered Tax, How To Calculate? what is service tax, how much calculated on service? Capital-IQ TATA Capital-IQ

29. what is format of Trial balance

If Bank OD In Balance Sheet Which Site Showing? What is Meany By MIS Report?What are things covered in the report? What three Specific Job Positions do you target from the Industry Why do you want to work with us Do you have reference list How do you plan to achieve these goals What goals do you have in your career Briefly describe your ideal job What is difference between profit, revenue? what is RTGS? What is the defination/meaning of Mercantile Accounting? What is mean by mercantile accounting? In intangible assest, patents ,trade marks,copy rights we can feel or some thing can be done but what about goodwill? Capital-IQ GSK GSK GSK GSK GSK GSK

30.

what are accounting principles what is diff between p&l & trading a/c WHAT IS PERSONAL ACCOUNT What is the difference btwn "Sales" and "Turnvoer".

Accenture CA

What is the difference betwn "Inventory" and "Stock". What is Mean By FRS for HQ reporting, How To Prepare? what is the difference between pay order & D.D.? ICICI wat is penny stock? Deloitte

What is operating profit ? how is it different from Gross profit ? What do you mean by Venture Capitla and Private Equity? Define cost accounting?

what is Bills Receivables and Bills Payables? Expand GAAP? what is Suspence Account?

HCL Wipro Wipro

31.

what do you mean by contra entry? and where it is used? Accenture What is Meaning Of accounting Function , Fund Management, Equities, Mutual Funds, Fixed Income Secrities, Derivative, Accounts of Trade, Share Holder Transaction,Knowledge on Using bloombag? can debenture is cenverted into share?if yes? how? what is sweet equity share? what is the treatment of frieght paid on purchase of fixed asset? & where it shold be shown? John-Fowler what is profit & loss A/c? difference between income & expenditure A/c how to study five year balance sheet What is Owner's Equity? What is income tax,sales tax and vat? sensex is increased and decreased in share market? why? How many types of banking accounts? tell me about that What is shadow balance? In Accounting how many types of formulaes? What is the diff. between gross profit and net profit? What is diff. between mutual fund and security? HBL-Power-Systems

32.

Tell me about portpolio? tell me about share?

What is promoters? what is contract note? how many types of practice accounts? tell me about accounting what is income tax what is securities? what is the quick asset what is debuntre what is your achievements? Give me solved example of bank book and cash book wat is finance? diff b/w debenture and bond? Accenture Bank-Of-America Capital-IQ Deloitte

what is the accounting treatment for contingent laibility?

33.

WHAT IS DERIVATIVE? WHAT IS A SHARE? What is the TDS Rates for the F.Y 2008-09 ? WHAT IS PORTFOLIO MANAGEMENT? What is portfolio? 5. What is cost of goods sold?

India-Infoline India-Infoline

India-Infoline India-Infoline

4. What is the difference between gross profit and net profit? What Do You Understand By The Word Accounting

Genpact ADP

Hi all i did my M.B.A financ enw iam doing a job as a finance executive but i feel it is not good 4 me can any 1 plz guide me 4 the better career my job profile is (INVOICING)hw it is help me out 4 the better career shell i continu ein the same 1 by learning sap or oracle or shall i shift to any other if any other which job is suites to me plz suggest me What is the difference between Direct expenses and Indirect expenses? FIC

meaningofderivative? Dividend per share? Mening of Earning per share? What is the meaning of net incaome?

UBS

please tell me GENPACT and GE finance interview questons

Genpact

34.

What is the meaning of Revenue? what is cnc machine hour rate? how it is calculated? what is bank rate? types of mutual funds? how to calculate share values of a company. what is sensex and nifty. whatis ratio analysis and methods of its calculation. what is capital budgeting and techniques of capital budgeting. what is the difference between gross profit and net profit? what is reverse repo? what is cost of goods sold ? Capital-IQ Syndicate-Bank Greaves

Sales for ABC Company were Rs.150,000 for 2003.The beginning inventory was 30% of the cost of goods sold.The ending inventory was 50% of the beginning invetory.Selling expenses were 10% of sales and absorbed 30% sales.Income taxes were 30% of net income before taxes. WHAT IS THIS ACCOUNT Genpact

35.

A CAR GIVES 100 KLIO METERS OF TO what is working management? what is the meaning of Journal Ledger? what is the meaning of P/V Ratio? what is GAAP? what is demand? What are all the items come under P&L and Balance sheet? what is a share? what is a security? what is mutualfund? what is delapidation? Franklin-Templeton Franklin-Templeton Franklin-Templeton CA Genpact

please send me a HSBC basic accounting question & answers to my mail id. What is the analytical way of accounting? what is break even point? what is gross profit? ADP

36.

what is net profit? pls explain the clear difference between Depreciation and Demortization? Explain why retained earnings have an opportunity cost associated? What are the 3 Basic Rules in Accounting. Franklin-Templeton HSBC

What is the difference between cost accounting and financial accounting? what is diffference between retail invoice and tax invoice ? what is the difference between provision for bad debts and reserve for bad debts? What is the difference between Capital Reserve and Reserve Capital? Discuss the role of cost accounting in managerial decision making Distinguish between Piece rate and Time rate? Genpact

Discuss the role of cost accounting in managerial decision making? What is meant by Repo Rate and Reverse Repo Rate. Capital-IQ

What is the Difference between Real Accont and Nominal Account? GE Tell me something about you What is Deffered Tax? Capital-IQ

37.

Discuss the role of cost accounting in managerial decision making? What is meant by Cost Accounting? How it is different from Financial Accounting? Discuss the role of cost accounting in managerial decision making? What is meant by Cost Accounting? How it is different from Financial Accounting? Parco

Compare and contrast the accounting procedure followed by a sole trader and a partnership firm. what are the concepts & conventions of accounting? what do you mean by debt equity ratio? Capital-IQ

what is the difference between long term debt and short term debt? Capital-IQ what is ment by memorandom of association? share premium? what is securites what is bond and what is debentures what is debentures what is bonds golden rules of accounting? how bank earn profit? Bank-Of-America Capital-IQ Capital-IQ

38.

What is meant by defferred revenue expenditure

Xansa

bonus shares?

Capital-IQ

what do you mean by fixed asset? what is meant by credit derivative?

Capital-IQ Wipro Mafoi

what is the basic difference between accounting and financing? what is meant by mid-cap?

When we are using the DEPB licence for duty adjustment 100 %, there is no cash payment to customs. If i am a trader and registered with excise, Can we avail the modvat credit and pass on to customers? ABC discuss how accrual concepts and matching concepts are the same How to calculate india GDP growth rate? Why depreciation is charged in P&L Account? Why profit is a liability and loss is an assets apptitude Questions for accounts payable job Who to create a budget on software company Who to create a budget on software company Difference betwen debentures and bonds What is the diffrecnce between liabilities and owner's equity? Owner and the Company/Firm are both the different entities. Owner's Equity itself is a liability for the firm/Company as the owner has invested it into the firm. Airtel KLG-Systel Deloitte

39.

what is repo market? I am going to attend an interview for the post of Sr. Accounts Officer in airport authority of india,pls help me to prepare for the interview Why you choose commerce faculty & not science or Why you are in commerce & not in science ? What is mean by Corporate accounts? IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT INSTEAD OF PROFIT OR LOSS ACCOUNT ? How to answer for the question, tell me about ur project? I mean in which format can i say? What is amortization? Capital-IQ

What should be considered as best in the company's view either debt or equity? Explain briefly? Capital-IQ What is securities market? What is operating cycle? Capital-IQ Capital-IQ Capital-IQ

Which one is best to company either debt or equity?

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET Capital-IQ BY WHOME THE BANK RECONSILIATION STATEMENT IS PREPARED Ratio Analysis with its Ratios what is Dual Accounting Bank-Of-America Bank-Of-America Capital-IQ

40.

What is Capital Management

Wipro

what are the questions commomly asked in reuter's interview.? what is the difference between debenture and shares what is fundamentals of accounting ? WHAT IS Z.B.B. ZERO BASED BUDGET? What is treasury bills Capital-IQ Syntel

what is cash flow and funds flow? Difference between cash and funds flow? methods of cash flow Capital-IQ what is oppurtunity cost what is authorised capitla and subscribed capital what is sunk cost Stock Turnover Ratio? What are operating Costs? What is Capital Expenditure What is Zero Based Budgeting? What is meant by marginal cost? Capital-IQ Capital-IQ Capital-IQ Capital-IQ Capital-IQ Capital-IQ Capital-IQ Infosys

41.

What is meant by Salaries Outstanding Accounts? HP what are the models of valuation of the company

what is indirect tax? what is inflation? what is repo rate?

Capital-IQ Capital-IQ Capital-IQ

what is public ltd company and difference between public ltd company and public sector undertaking? Capital-IQ What is venture capital? What is peer group comaprision? what is holding company? what is insider trading? Capital-IQ Office-Tiger Capital-IQ Capital-IQ

What is exact difference b/w Accounts and finance IBM what is net worth Capital-IQ

what is quick asset ipo

Capital-IQ Capital-IQ

What is exact difference b/w Accounts and finance IBM what is net worth what is quick asset what are different types of invoice? hwo to joine accountancy What do you mean by Investment Banking? What is General Ledger what is business entity concept? HCL Accenture Capital-IQ Capital-IQ WNS

42.

what do you mean by BPO,KPO What is TDS what do you mean by Bank reconcilation statement what do you mean by Account receivables what do you mean by Accounts payable

Accenture Accenture Accenture Accenture Accenture

FORFEITURE OF SHARESVS SURRENDER OF SHARES REALISATION ACCOUNT VS REVALUATION ACCOUNT RULE IN GARNER VS MURRAY INDEPENDENT BRANCHS HIREPURCHASE VS INSTALMENT PURCHASE DEFECTS OF SINGLE ENTRY SYSTEM ACCOUNTING CONCEPTS AND CONVENTIONS INTE3RNATIONAL ACCOUNTING STD CA Mphasis Andhra-Bank

GOLDEN RULES OF ACCOUNTING

HP

RECEIVABLES MEANS TO BE RECEIVED, ACCOUNT RECEIVABLES INCLUDES THE AMOUNTS WHICH HAS TO BE RECEIVED AGAINST SALES FOR WHICH RECEIVER HAS PROMISED TO PAY IN DUE COURSE OF TIME , THE PERSON OR THE FIRM IS CALLED DEBTORS

Accounts receivable is somtimes a 'Suspense' account. An advance is given by debiting this account for purchase of some article or item for which bill is not received immediately. After the expenditure is incurred and proper Invoice or Bill is received , this amount is reversed to the debit of the expenditure head or after Asset creation (in case of buying a fixed asset). In brief, accounts receivable may be a temporary advance and is expected to be wiped out, shortly.

43.

HOW MANY ACCOUNTING STANDARDS IN INDIA what is the use of activity based costing, process costing, product costing, what are the steps followed for the same Bosch how standard costing techniques are applied in manufacturing sectors Bosch

how margnial costing is used in manufacturing sectors, what is the method/steps for using marginal costing Bosch hi friends this veerendra i faced a qsn from accenture that is "if we use 2 retained earng a/cs what will happened and which places it will affect? give me explain what are the characteristics of financial accounting Genpact what is depreciation? Genpact

bills receivables shows which balance

Genpact

after adjusting the amounts accountant of the company prepares which accounts?? Genpact company prepares accounts sometimes on cash basis , sometimes on accural basis A)TRUE B)FALSE C)SOMETIMES TRUE D)SOMETIMES FALSE Genpact what are concepts and conventions of accounting Infosys category of acccount What is peer group comaprision? what is holding company? what is insider trading? TCS Office-Tiger Capital-IQ Capital-IQ

44.

What is debt?

Nagarjuna-Fertilizers

What is the significance of finance management in day to day life? What is the difference between Long term Loan and Debt? What is GDP??? what is the difference between debenture and preference share Why are bond prices inversely related to interest rates ? Indiabulls ICFAI

DESCRIBE A FAILURE IN PROFESSIONAL OR ACADEMIC LIFE?HOW TO OVERCOME LaSalle What are GAAP? What is Royalty? What is Bear marke