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Accounts Payable
What is the difference between (1) accounts payable and bills payable and (2) accounts receivable and bills receivable
subbop
- Jul 27th, 2011
Account payable refers to the debts to be paid off within a given period of time to the creditors and whereas bills payable is the money a bank borrows, mainly on short term basis and owes to other ba...
anilrawatnokia
- Sep 15th, 2010
1. Accounts payable are amounts due to vendors in the normal course of business, such as for rent and utilities, supplies, and the like. A note payable represents a loan which bears interest, usually ...
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What is shadow balance ?
Arun V B
- Jul 27th, 2011
Shadow Balance in bank accounts is the balance upto which the subsequent debits/credit can be posted upto. Shadow Balance = Book Balance - Debit/ Book Balance+Credit (yet to be authorised for postin...
vasudeo007
- Aug 19th, 2008
Shadow balance is that balance which is not yet clear.Consider any company's case.Company has given money to someone by a cheque. Then they have shown in their cash book that money has been given....
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What is meant by turnover
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vasudeo007- Member Since Jul-2008 | Aug 19th, 2008
The word "Turnover" has many meanings.
For a trader/manufacturer/service provider it means total sales (cash+credit).
While when a bank gives loan to any person or company they see the turnover.
Here the turnover generally refers to the total credits in any given period in account holder's account.
While bank's own turnover is the total loans disbursed + outstanding recovery of earlier period - bad debts (loans written off) in this period.
Considering the disclosure norms in Accounting Standards the announcement of turnover is required. I am not sure for which industries it is mandatory and for which industries it is not. But it is nevertheless announced.
Balance sheet of any company can be easily window dressed. So to understand whether whatever profits that are shown are really from turnover or not the announcement of turnover becomes necessary.
In case if a person/investor finds out that the turnover of any company is not high but the company is saying that they have made big profits then he can probe in details as to how the company is making its money.
In case if the investor finds out that the company is selling the goods to a huge quantity but not making much profits then he can investigate the books of accounts to find out what are the causes of low profitability.
Vasudeo.mech.sanjay
- Mar 24th, 2011
An aspest-how the management efficiency is being turned around in terms of quantity being sold on technology, cost, human & time constraints.note-these constraints can be prioritized.
vasudeo007
- Aug 19th, 2008
The word "Turnover" has many meanings.For a trader/manufacturer/service provider it means total sales (cash+credit).While when a bank gives loan to any person or company they see the turnove...
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Steps for Approving Invoice
What is the steps taken before approving any Invoice
deepakkumarcs
- Oct 20th, 2010
First we should find client PO after that we want observe our order accptence and materials should be ready to despatch level, then only we can get steps for approving invoice.
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What is JOC in accounting?
anilrawatnokia
- Sep 15th, 2010
JOC means Job Order Costing and is a part of Cost AccountingA job order costing system is used when a job or batch is significantlydifferent from other jobs or batches. Cost accounting is usually fair...
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What will you do if there is a missing invoice?
anilrawatnokia
- Sep 15th, 2010
First of all you haven't mention which kind of invoice is missing.However the answer is that we will transfer the amount to the Suspense account.
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Audit Trail
An audit trail allows an individual to track a transaction from the journal entry to the general ledger through to the financial statements. The audit trail can also find all the transactions that comprise the dollar amount for each account listed on the income statement and balance sheet. Your team has been assigned the duty to diagram the audit trail for your company. In your diagram, show several...
snjsanthosh
- Sep 1st, 2010
Audit trial is a chronological sequence of audit records, each of which contains evidence directly pertaining to and resulting from the execution of a business process or system function
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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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Which of the following dose not included in the Government accounting Balance sheet: 1) Asset, 2) Cost, 3) Liability, 4) Surplus.
rama krishna
- Jul 16th, 2007
I think it is cost, because it is a part of trading or profit & loss account
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Declining Inventory Prices
When inventory prices are declining the, FIFO method will generally yield a gross profit that is:A Less than the LIFO methodB Equal to the average cost methodC The same as that from any other costing methodD Higher than the LIFO method.
steadyshot23
- Mar 18th, 2010
Gross Profit is always higher for FIFO than LIFO. Cost of Goods sold is going to be always higher for LIFO and lower for FIFO. LIFO tends to go for more of a tax break approach. Comp...
niki_1079
- Jan 1st, 2010
It would be less then Lifo Method Definitely, as inventory prices are declining. if inventory prices are increasing then it would be higher then LIFO method.
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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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Comprehensive Income
What is the meaning of Comprehensive Income
steadyshot23
- Mar 18th, 2010
Comprehensive Income is reported after Net Income. Net Income is included in the Comprehensive Income computation, as well as any unrealized gains or losses net of tax, derivatives are adde...
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Trail Balance preparation
Why do we prepare Trail Balance?
steadyshot23
- Mar 18th, 2010
Trial Balance is prepared in order to see if Debits=Credits. If Debits=Credits then you proceed to prepare an income statement. Then prepare a balance sheet. Plain and simple.
sathyapidugu
- Oct 8th, 2008
In Accounts Perspective: Trail balance will be prepared to know the Arthamatic Accuracy of all the accounts with in a given period normally yearly basis.This statment consist of heads belongs to ...
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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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Contributioin Margin
What is contribution margin and how it is calculated?
steadyshot23
- Mar 18th, 2010
Contribution Margin is simple (Sales-Variable Costs= Contribution Margin)
sathyapidugu
- Oct 7th, 2008
Contribution means Total Sales-Variable Cost= Contribution Contribution is a combination of Fixed expenses + or - profit meansIf Sales are 10000 and Variable cost is 7000 and Fixed cost is 3200 then contribution margin is -200
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Letter of Credit
Is letter of Credit recorded under Bank as restricted cash or under current assets?
Assume the company has deposited the funds into a CD to get the letter of credit. What is the JE to book it?mmali1979
- Mar 16th, 2010
Dr. to Bank Gurantee A/cCr. to Particular Bank A/c.Being Certain amount deposited in a bank for bank Gurantee for certain time/period.Once transaction finished pls reversal the same entry.Dr. to Particular Bank A/cCr. To Bank Gurantee A/c
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What is purchasing order?What is vendor?What is sarbanes-oxley act?what is debit and credit note?What is basic accounting principles?what is dual aspect concept?what is depreciation? and how many types and details?what is cash flow and funds flow?what is capital gain?
vijay.rathinavel
- Mar 13th, 2010
Cash FlowIt is a Statement showing changes in inflow & outflow of cash during the period.A. Operating Activities,B. Investment ActivitiesC. Financial ActivitiesThe CFS allows investors to und...
dinanath
- Jan 31st, 2009
Changes in working capital due to Non Current Transaction is called Fund Flow and Changes in Working capital due to current and non current transaction is called Cash Flow.
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How and on what basis will you identify duplicate invoice?
Swami Reddy
- Feb 3rd, 2010
We can identify a duplicate invoice when it matches with another invoice's critical fields like invoice Date, Number, amount and description of the services.
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Amortization
What is Amortization?
sulabhkapoor
- Feb 3rd, 2010
1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically...
vasudeo007
- Aug 19th, 2008
Amortisation is a concept very similar to depreciation.In case of depreciation, it is charged to assets marking reduction in their value.In case of loans the repayment means amortisation.In case of ce...
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What the functions of manger -accounts and manager-finance.explain in detail.
The person who has been in the mid career level as asst.mgr ,taking care of various function and porfolios of accounts department and expert knowledge in accounting concepts is said to be ab manager -accounts generally in manufacturing organisaton.where as latter head for finance organisation and has been in flied with excellent knowledge and concepts of gap,etc.
dg83384
- Jan 20th, 2010
Recording: This is the basic function of accounting. It is essentially concerned with not only ensuring that all business transactions of financial character are in fact recorded but also that they ar...
kemal ahmed endeshaw
- Aug 23rd, 2007
when we see their difference from broad organizational reviewthe function of accounts manager1. the approval of the accounting system utilization and calculated amounts in supportable documents ,for e...
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