Saved Bookmarks
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 301. |
What ismeant by ower's capital ? |
| Answer» Solution : OWNER's CAPITAL meana balance STANDING to the credit of Capital ACCOUNT af the peoprietor. | |
| 302. |
What is meant by Outstanding Expenses? |
| Answer» SOLUTION :OUTSTANDING EXPANSES MEAN the EXPENSES incurred but not yet paid. | |
| 303. |
What is meant by Indirect Expenses ? |
| Answer» Solution :INDIRECT EXPENSES are those expenses which are incurred and are not directly ASSOCIATED with the purchases of goods or MANUFACTURE of goods. Examples of such expenses are administrative expenses, selling and DISTRIBUTION expenses, etc. | |
| 304. |
What is meant by Grouping or Marshalling a Balance Sheet ? Or, What is meany by Marshalling of Assets and Liabilities ? Or, What is meant by Marshalling ? |
| Answer» Solution :Grouping of Balance SHEET means putting items of SIMILAR nature under a COMMON heading. MARSHALLING of Balance Sheet means arranging the assets and liabilities in a particular order, i.e., in order of permanence or in order of LIQUIDITY | |
| 305. |
What is meant by Grouping and Marshalling of assets and liabilities. Explain the ways in which a balance sheet may be marshalled. |
| Answer» SOLUTION :N/a | |
| 306. |
What is meant by General Reserve? |
| Answer» SOLUTION :GENERAL RESERVE is the amount set aside out of profits for no specific PURPOSE. | |
| 307. |
What is meant by GAAP? |
| Answer» SOLUTION :GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. | |
| 308. |
What is meant by Errors of Commission? |
| Answer» Solution :Errors of Commission are those errors which arise DUE to wrong recording, wrong POSTING, wrong carrying forward, wrong CASTING, wrong balancing, ETC. | |
| 309. |
What is meant by Error of Principle? |
| Answer» SOLUTION :ERROR of Principle MEANS RECORDING a transaction in CONTRAVENTION of accounting principles. | |
| 310. |
What is meant by Error of Partial Omission? |
| Answer» SOLUTION :Error of Partial Omission means a transaction being recorded PARTIALLY and if recorded completely has been posted into LEDGER ACCOUNTS partially. | |
| 311. |
What is meant by Error of Omission? |
| Answer» Solution :ERROR of OMISSION means a TRANSACTION being OMITTED to be recorded completely or PARTIALLY. | |
| 312. |
What is meant by Error of Complete Omission? |
| Answer» SOLUTION :Error of COMPLETE Omission means a TRANSACTION is not RECORDED in the books of account or if recorded has not been posted into Ledger ACCOUNTS. | |
| 313. |
What is meant by Depreciation ? |
| Answer» Solution :DEPRECIATION is the fall in the value of ASSET to its use, efflux of time, technological changes and OBSOLESCENCE. | |
| 314. |
What is meant by debit balance in Pass Book ? |
| Answer» SOLUTION :Debit BALANCE in Pass BOOK means OVERDRAFT. | |
| 315. |
What is meant by debit balance of Input CGST Account ? |
| Answer» SOLUTION :It MEANS GST RECOVERABLE | |
| 316. |
What is meant by Credit Transaction ? |
| Answer» Solution :Credit transaction is a financial transaction or EVENT that is not SETTLED IMMEDIATELY, i.e., is agreed to be settled LATER | |
| 317. |
What is meant by credit balance of Output SGST Accounts ? |
| Answer» SOLUTION :It MEANS AMOUNT PAYABLE to the GOVERNMENT | |
| 318. |
What is meant by Compensating Error? |
| Answer» SOLUTION :Compensating Error is the error the EFFECT of which is NULLIFIED by another error of equal AMOUNT. | |
| 319. |
What is meant by closing stock? Show its treatment in final accounts? |
| Answer» SOLUTION :N/a | |
| 320. |
What is meant by Cash Transaction ? |
| Answer» Solution :Cash TRANSACTION is a FINANCIAL transaction or EVENT that is SETTLED IMMEDIATELY in cash. | |
| 321. |
What is meant by Capital Receipt ? |
| Answer» Solution :Capital RECEIPT is the amount received by the business on ACCOUNT of capital, LOANS or sale proceeds of fixed assets. In other WORDS, they are not revenue for the business | |
| 322. |
What is meant by Capital Reserve? |
| Answer» Solution :Capital RESERVE menas reserve CREATED out of Capital. PROFITS. | |
| 323. |
What is meant by Capital Expenditure ? |
| Answer» SOLUTION :CAPITAL Expenditure is expenditure that results in ACQUIRING or bringing into existence | |
| 324. |
What is meant by ''Balancing an Account''? |
| Answer» Solution :BALANCING of an ACCOUNT means ascertaining the CLOSING balance of a PARTICULAR account on a particular data. | |
| 325. |
What is meant by balancing an account ? |
| Answer» Solution :Balancing an account mean totalling the two sides and striking the difference. The difference is written in the COLUMN with shorter BALANCE and is carried forward as a BALANCED in the NEXT ACCOUNTING period. | |
| 326. |
What is meant by Bad Debts ? |
| Answer» Solution :BAD Debt is the amount DUE from the DEBTORS which has become irrecoverable. | |
| 327. |
What is meant by Asset Disposal Account ? |
| Answer» Solution :Asset Disposal ACCOUNT means that the cost of the asset and also the provision for DEPRECIATION is transferred to the account at the time of its sale (disposal). The sale proceeds are CREDITED to the account and gain (profit) or loss on sale on its disposal is DETERMINED. | |
| 328. |
What is meant by Analytical Patty Cash Book ? |
| Answer» Solution :Analytical Petty CASH BOOK has two sidesx, left side is used to RECORD the receipts of cash and the right side is used for recording the payments. The paymentas side has columns for recording each TYPE expense. | |
| 329. |
What is meant by Adjustment Entry ? |
| Answer» SOLUTION :Adjustment ENTRY is the entry passed to recored EXPENSES and INCOMES that relate to the accounting peroid but are yet to be paid or RECEIVED. | |
| 330. |
What is meant by Adjustment Purchases ? |
| Answer» Solution :ADJUSTED Purchases means OPENING Stock is added to purchases while CLOSING stock is deducted. In other words, we can say that ENTRY for closing stock in the books of account. | |
| 331. |
What is meant by 'Accounts from Incomplete Records'? |
| Answer» Solution :When DOUBLE ENTRY SYSTEM is not followedd completely to prepare accounting books of a firm, it is CALLED incomplete RECORDS or 'Single Entry System'. | |
| 332. |
whatis meant byAccountinginformationsystem? Listfourfeaturesof agoodAccountinginformationsystem . |
| Answer» | |
| 333. |
What is meant by a ‘statement of affairs’? How can the profit or loss of a trader be ascertained with the help of a statement of affairs? |
|
Answer» |
|
| 334. |
What is meant by Accounting ? |
| Answer» SOLUTION :ACCOUNTANCY is the art of recording, classifying, summarising and COMMUNICATING financial information to users for correct decision making. | |
| 335. |
What is meant by a rectifying entry? |
| Answer» Solution :RECTIFYING entry MEANS an entry PASSED to correct the ERROR committed. | |
| 336. |
What is meant by a JournalProper? |
| Answer» SOLUTION :Journal Proper is abook of ACCOUNT in which those TRANSACTIONS and events are recorded which are not recorded in the SUBSIDIARY books. | |
| 337. |
What is meant by a Sales Return Book ? |
| Answer» SOLUTION :Sales RETURN BOOK is a SUBSIDIARY bookin which the return of goods SOLD is recorded. | |
| 338. |
What is Liability Account ? |
| Answer» Solution :LIABILITY ACCOUNT is an account which shows the AMOUNTS payableby the ENTERPRISE . | |
| 339. |
What is matching concept? |
| Answer» SOLUTION :All costs incurred during a PARTICULAR period should be CHARGED to REVENUE of that period for determining the NET profits. | |
| 340. |
What is Ledger? |
| Answer» SOLUTION :The book which CONTAINS a classified and permanent RECORD of all the transactions of a BUSINESS is called the Ledger. | |
| 341. |
What is J.F.? |
| Answer» Solution :JOURNAL Folio or J.F. is the page NUMBER of the journal from where the posting has been transferred in the LEDGER. This page number of the journal is recorded in the ledger in J.F. COLUMN. | |
| 342. |
What is Journalising? |
| Answer» SOLUTION :Journalising is a PROCESS of RECORDING a transaction in a JOURNAL. | |
| 343. |
What is 'Imprest System' of Petty Cash Book ? |
| Answer» Solution :Under this SYSTEM , the petty cashier is GIVEN a definite sum, SAY Rs. 2,500, at the BEGINNING ofcertainperiod. This amount is called IMPREST amount . The petty cahsier goes on paying all petty expenses out of his imprest amount and records them in the petty cash book maintained by him. At the end of the given period , say after a month , the chief cahsierreimburses the amount actually spent by the petty cashier . | |
| 344. |
What is income? |
|
Answer» SOLUTION :EXCESS of REVENUE over expenses is called INCOME. Income = Revenue - Expenses |
|
| 345. |
What is humanware?. |
| Answer» SOLUTION :People who design DATA, WRITE programs to IMPLEMENT the data and who participate in operating the computer are known as Humanware. | |
| 346. |
What is expense? |
| Answer» SOLUTION :EXPENSE is the cost incurred in PRODUCING and selling the goods ANDSERVICES. | |
| 347. |
What is end product of financial accounting ? |
| Answer» Solution :End product of ACCOUNTING are the financial statements (i.e., Profit & LOSS ACCOUNT and Balance Sheet) and reports which PROVIDE information that are useful to a variety of user who want to know the PROFITABILITY and financial position of an enterprise | |
| 348. |
What is going concern concept? |
| Answer» Solution :Business will CONTINUE to exist for a long time in the FUTURE and there is no intention to CLOSE it or REDUCE its size significantly. | |
| 349. |
What is Double Entry System of Book-Keeping? |
| Answer» SOLUTION :Double ENTRY system refers to a system of accounting in which every transaction affects ATLEAST two accounts simultaneously. One of them is DEBITED and other is credited. | |
| 350. |
What is dual aspect concept? |
| Answer» Solution :Every BUSINESS TRANSACTION is RECORDED having a dual ASPECT. One aspect is DEBITED while other is credited. | |