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Rates and Ratios
Rates and Ratios are often interpreted as same. Differentiate between the two giving at least two examples?
vasudeo007
- Aug 26th, 2008
Rates and ratios have utterly different meanings.Rates may mean the charges per unit. While ratios mean the ratio of one variable to other.Rates are expenses which are debited to profit and loss accou...
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Contingent Liability
Why it is necessary to create contingent liability? How this liability helps the banker to relieve from the future liability due to default in payment by the concerned party?
vasudeo007
- Oct 6th, 2008
It is not necessary to create contingent liabilities.If any such liability exists then it must be shown in the balance sheet. But you don't have to create any for the heck of it.Moreover it does n...
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Find sales on 3rd Day
A survey showed that average sales of a shopkeeper during last three days have been 45. If the sales on first and second day have been 34 and 5 find out the sales of third day.
vasudeo007
- Oct 6th, 2008
I believe this is not really an accounting question.The answer I think is- 96 units.Explanation: Average of last 3 days is 45 that means total sales 45x3= 135 units1st day sales is 34 and 2nd day 5. That means 135-(34+5) = 96 units.Correct me if I am wrong.
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Find Rate of Change
Volume of trade in a company over past four days has been 3431, 4532, 2789, and 5467. Find out the rate of changes day to day.
vasudeo007
- Oct 6th, 2008
Again an arithmetics question.1st day 34312nd day 4532 = ((4532-3431)*100/3431) = 32.08977 % change3rd day 2789 = (2789-4532)*100/4532 = -38.4598 % change4th day 5467 = (5467-2789)*100/2789 = 96.02008 % changeIs this what you are asking for?
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Find expenditure on clothing
Karamat Sahoo spends 34% of his salary in clothing. if 30% of karamat sahoo's salary is 3456 rupees then find his expenditure on clothing.
vasudeo007
- Oct 6th, 2008
Seems to be a simple arithmetics problem.if 30% = 3456 then 100 % = (3456/30)*100 = 11520So 34% = 115.2*34 = 3916.80So he spends Rs. 3916.80 on clothing.Seems a pagal guy, itna kharcha kapdon pe kyon kar raha hai? :)
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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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Letters of Credit
If Irrevocable Letter of Credit is backed by a CD. How do you account for it? Will it be on Balance Sheet or is it just a Footnote item?
vasudeo007
- Oct 6th, 2008
Letter of credit is always backed by Fixed Deposit. Bank does not issue letter of credit unless and until it has tangible securities provided by you pledged in bank's favour.Moreover bank charges ...
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Pre-Paid Insurance
How will you treat pre-paid insurance in balance sheet?
vasudeo007
- Oct 3rd, 2008
The words "pre-paid insurance" are self explanatory.What is pre-paid insurance? The insurance that is paid in advance, before due date. This is treated like current asset. The exact treatmen...
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Control Account
What is a Control Account? How will you create a control account?
ajspalia
- Nov 12th, 2008
A control account in GL is a summary of sub ledger accounts that can not be represented individually in GL because of thier huge numbers e.g. the number of vendors for a company can be numerous and it...
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What are the assumptions of BEP analysis
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In EOQ, is Carrying cost is more, less or equal to Ordering cost, Explain?
pallapu99
- Jul 3rd, 2009
EOQ is the quantity of order where we can incurr the minimun inventory cost. at this level of purchse both total Carring and total ordering are equal since it is optimum level of ordering quantity.
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Capital Budgeting
In Capital Budgeting IRR is the rate at which NPV equals to
a. positive one
b. negative one
c. zero
d. none of these -
In EOQ, is Carrying cost is more, less or equal to Ordering cost
jani basha
- Dec 3rd, 2008
EOQ MEANS ECONOMIC ORDER QUANTITY EOQ=root of 2ao c a= means annual demand o= order quantity c= carring cost per unite per annum Through this formula you can find the economic order quantity...
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How prepare funds flow statement?
suresh b poojar
- Sep 9th, 2009
It is the statement of changes in financial position, prepared to determine only the sources and uses of working capital between dates of 2 balance sheets.
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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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What do you mean by GPSD in accounting?
Alkuhaly55
- Jan 11th, 2010
GPSD is a service daemon that monitors one or more GPSes or AIS receivers attached to a host computer through serial or USB ports, making all data on the location/course/velocity of the sensors availa...
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Gift Items Depreciation
What is the treatment of Depreciation on Gift Items?
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What are Accrual, Provision and Reserve?
koteswararao.purimitla
- Jul 25th, 2009
We create any outstanding or Expenditure are Income is called Accrual. It is not actual received or paid specific period, but these are earned are expended preset specific period. This transaction is not effected on the cash present period, only effected on books only.
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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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What is the difference between authorised capital and paid-up capital?
Geetha.K
- Aug 18th, 2009
Authorized capital is the capital to which an organization is authorised to use in the business and maximum amount that can be used for the working of organization. Paid-up capital is a part of authorised capital which is fully paid by shareholders. ...
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