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Sensex Points calculatation
How do you calculate sensex points?
vasudeo007
- Aug 19th, 2008
Sensex or for that matter any index in any capital market acts as the barometer of the economy. When economy is on rise then the index shoots up and vice-versa.There is presumed to be co-relation betw...
priya
- Nov 27th, 2007
SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 com...
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HRA, DA and DP caluculate in taxation
How can we caluculate HRA, DA, DP in taxation.
amarnath111
- Jul 30th, 2009
DA is calculated on certain % fixed on basic & there is no rules for DA calucalation
amarnath111
- Jul 30th, 2009
HRA calculated as1. 40% (in case of other cities) & 50% (in case?of metro cities)?of?the saalry2. Rent paid - (minus) 10% of the salary3. Actual HRA received
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Profit and Loss a/c
What is the importance of the profit and loss account? What is the most important item of the P&L A/C (asked in a Citibank interview)
sivappan
- Mar 17th, 2009
Net profit is shown in the liability side because company is liable to pay that much amout to owner/owners of the company.
akshayparhi
- Aug 13th, 2008
A company's profit and loss account shows revenue, expenditure and the profit and/or loss resulting from operations for a given 'financial year'. So it is?necessory for the company to know the profit and loss after deducting / adding all direct and indirect expenses or income.Akshay Parhi
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Annual Turnover
Calculation of turnover in construction comapanies? What is the use of turnover? If turnover was not announced annualy, what are the problems arised?
sathyapidugu
- Oct 6th, 2008
In general context turnover means volume of sales in case of Construction compay turnover means Projects complted in a particular period . with the hepl of turnover one can assess the efficiency and profitabllity of the company
vasudeo007
- Oct 6th, 2008
Turnover means total sales from strict accounting sense.Few liberals would also say that turnover means total purchase + total sales.It really depends on your viewpoint. But for a construction company...
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Cash Flow
Where do you put non current lease payment on a statement of cash flow?
samanth
- Feb 12th, 2017
It is a statement depicting change in cash position from one period to another period
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Periodic and Perpetual method
What is the difference between the periodic and perpetual method, How will you record it your book?
steadyshot23
- Mar 18th, 2010
A periodic inventory system adjusts inventory and records costs of goods only at the end of each reporting period. Since you have to count your ending inventory by hand. Perpetual inventory system continuously records both changes in inventory quantity and inventory costs.
ajspalia
- Nov 27th, 2008
I am not sure in what context the user is asking but periodic and perpetual are two methods used for inventory control. Periodic inventory is undertaken more commonly to calculate the value of a...
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FPNA
What is the full form of acronym FPNA?
zaiba iqbal
- Jan 10th, 2015
Financial planning and analysis
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What is Short Term Solvency Ratio?
anil joshi
- Feb 2nd, 2013
Ratios used to judge the adequacy of liquid assets for meeting short-term
obligations as they come due, including
1) the current ratio,
2) the acid-test ratio,
3) the inventory turnover ratio, and
4) the accounts receivable turnover ratio.
suji
- Feb 29th, 2012
Short-term Solvency Ratios Its a ratio to measure the firms ability to meet short-term financial obligations. With this the firm will avoid financial distress in the short-run. There are two most important Short-term Solvency Ratios
1. Current Ratio.
2. Quick Ratio.
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Distinguish break even point from margin safety
steadyshot23
- Mar 18th, 2010
Break Even point is Total Fixed Expenses/CM Ratio or Unit. In another hand Margin of Safety is Actual Sales - Break Even point. So you need to figure out the break even point first in order to e...
naman1
- Nov 23rd, 2008
BEP means sales level at which total cost of the product are equal. MOS means what business sales above the BEP level sales.
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Reducing Balance Method
Seema Automobiles Ltd., purchesed a machine for Rs. 60,000 on 1st july, 1988. On 1st january, 1989 company purchesed an additional machine costing Rs 20,000. On 31st december, 1990 the machinery purchesed on 1st july, 1988 became absolete and was sold for 40,000. Deprication was provided annualy on 31st December at the rate of 10% per annu on the Reducing Balance Method. Prepare machinery account...
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Retail Invoice vs. Tax Invoice
What difference between retail invoice and tax invoice?
AJAY
- Feb 10th, 2012
Retail invoice is a normal invoice given to a customer at the time of sales, it is not concerned with tax-credit. Whereas tax invoice is a mandatory invoice precribed by the tax authorities containin...
Lokesh M
- Feb 7th, 2012
Whenever sales transaction does not involve any tax component, then retail invoice is issued. Such type of invoice is also known as cash memo. No VAT credit can be claimed on retail invoices. Wheneve...
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Authorised Capital & Paid Up Capital
What is authorised capital and How different it is from paid up capital? What is its importance while analysing a balance sheet of a firm?
hifi55
- May 4th, 2009
Authorised capital is the capital which a company is authorised to issue to the general ?public, it cannot issue more than that limit. Paid up capital is the actual amount of capital ?which the public has subscribed.
vasudeo007
- Apr 20th, 2009
Authorised Capital: The capital which is maximum capital the company can raise in its life time. Hardly any company issues capital which is equal to authorised capital.Paid up capital: Paid up capital...
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When does a debtor become a creditor?
vishnu ghiya
- May 15th, 2009
On?only one case - If he become a product supplier & we purchase the material from the party who is debitor for us.
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Ethical Behaviour
Your client is preparing financial statements to show the bank. You know that he has incurred a computer repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not received the official bill, although he knows the expense was $1,250. Your client is on the accrual basis of accounting. He does not want the computer repair...
denemotley
- May 12th, 2010
Is your client behaving ethically by suggesting that the computer repair expense not be booked until the officail bill is presented?
karamshree
- Nov 23rd, 2009
It depends on what was the catagary of business if the computer repairing expense is mendatory field in the head of indierect expense in P&L then he should show because at time of assessment there may be some problem.
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Pre-Condition for Sundry Transactions
What would be the post condition for sundry transaction when it comes to creditors?
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Fixed Asset in Accounting
How many types of fixed asset in accounting? What are they?
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Introduction accounting
How to work with a balance sheet,
components needed to prepare a balance sheet
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Salary Provision
Why do we record salary provision, although we know the exact amount of salary payable?
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