-
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...
-
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...
-
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.
-
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
-
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.
-
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
-
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.
-
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...
-
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.
-
What is meant by turnover
Read Best Answer
Editorial / Best Answer
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...
-
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....
-
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 ...
-
-
New Policy
What would you do if upper management issue a new policy and it was questionable to you? Would you follow the new policy?
-
How would quality problems manifest themselves in the accounting department?
cyberfrau
- Dec 2nd, 2011
As they would anywhere - problems arise when we do not conform to requirements. Having said that, sometimes problems arise because the requirements are not correct. Root cause analysis recommended.
-
Fixed Asset in Accounting
How many types of fixed asset in accounting? What are they?
-
-
What are freight charges?
Lokesh M
- Feb 7th, 2012
Freight charges is the cost of transporting the goods from the seller place to the purchasers location. This cost shall include packing, loading / unloading, carriage, shipping cost etc.,
-
What is a Chargeback?
Lokesh M
- Feb 7th, 2012
Chargeback means refund / return of funds to the buyer. Here the bank reverts back the transaction between the buyer and seller when chargeback is initiated. A chargeback is initiated by the buyer w...
-
What are some methods to allocate support cost?
Lokesh M
- Feb 7th, 2012
Some methods to allocate support cost are:
1. Direct Allocation Method
2. Step-Down Method (also known as Sequential Allocation Method)
3. Reciprocal Method
Accounting Interview Questions
Sub Category
Questions
Answers
Last Updated
Read Best Answer
Ans