Explore topic-wise InterviewSolutions in .

Debtors account and bills receivable account are THEORETICALLY same. Both are called as RECEIVABLES. When we sold goods to debtors account is debited. If we receive a bill from that debtor, we open bills receivable account by closing that debtor account. Thus, bills receivable account is nothing but debtor account.

If the bill is dishonored on the due date, we again debit the debtor account in our BOOKS. For INFORMATION and accounting purpose, we use both debtor account and bills receivable account.

Debtors account and bills receivable account are theoretically same. Both are called as receivables. When we sold goods to debtors account is debited. If we receive a bill from that debtor, we open bills receivable account by closing that debtor account. Thus, bills receivable account is nothing but debtor account.

If the bill is dishonored on the due date, we again debit the debtor account in our books. For information and accounting purpose, we use both debtor account and bills receivable account.

Show your understanding of the invoice verification process. Go through each step in DETAIL such as checking that GOODS have been received in proper condition or SERVICES RENDERED in a SATISFACTORY manner. Explain the importance of each step.

Show your understanding of the invoice verification process. Go through each step in detail such as checking that goods have been received in proper condition or services rendered in a satisfactory manner. Explain the importance of each step.

The word "credit" is part of the equation of double entry BOOKKEEPING.

In order for bookkeeping ENTRIES to balance, there must always be a debit (left side, abbreviated by "dr") and credit (right side, abbreviated by "cr") entry that equal one another.

For example: to record an Office Supply Store purchase (on ACCOUNT ~ a payable), the entry would be:

Office Supplies Exp $500.00(dr)

Accounts Payable $500.00(cr)

If an entry does not balance the totals for debits and credits, your BOOKS will be out of balance.

The word "credit" is part of the equation of double entry bookkeeping.

In order for bookkeeping entries to balance, there must always be a debit (left side, abbreviated by "dr") and credit (right side, abbreviated by "cr") entry that equal one another.

For example: to record an Office Supply Store purchase (on account ~ a payable), the entry would be:

Office Supplies Exp $500.00(dr)

Accounts Payable $500.00(cr)

If an entry does not balance the totals for debits and credits, your books will be out of balance.

BONDS have discounts and premiums and accrued INTEREST. PREFERRED Stock does not.

Bonds have discounts and premiums and accrued interest. Preferred Stock does not.

Yes, the accounting calculates the cost of capital to the business. It compares the current, expected, and historic RATES of RETURN. SUPPOSE a company is making 12% returns but borrowing MONEY by using the owner's credit card at 22% be GOOD to know that.

Yes, the accounting calculates the cost of capital to the business. It compares the current, expected, and historic rates of return. Suppose a company is making 12% returns but borrowing money by using the owner's credit card at 22% be good to know that.

Provisions are CREATED in books as they are anticipated. Example: PROVISION for depreciation

RESERVES are created in books as a part of profits, which might used to purchase ASSETS or to declare dividends.

Provisions are created in books as they are anticipated. Example: provision for depreciation

Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends.

It depends on the form in which the money COMES in. If it was invested as equity (either COMMON or Preferred Stock), it shows up on the BALANCE sheet as Paid in Capital. If it came in as debt (such as BRIDGE loan, secured note, etc.) it shows up as debt that must be repaid by the COMPANY.

It depends on the form in which the money comes in. If it was invested as equity (either Common or Preferred Stock), it shows up on the balance sheet as Paid in Capital. If it came in as debt (such as bridge loan, secured note, etc.) it shows up as debt that must be repaid by the company.

Cash FLOW and funds flow: cash flow means direct ENTRY of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean RISE in current ASSETS or fall in current liabilities which was not due to any cash movement.

Cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement.