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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.
| 352. |
What is Debit? |
| Answer» Solution :When an amount is entered on theleft-hand side of an ACCOUNT, it is a debit andtheaccount is SAID tobe DEBITED. | |
| 353. |
What is Credit? |
| Answer» Solution :When an AMOUNT is entered on theright-hand side of an ACCOUNT, it is a CREDIT andtheaccount is said TOBE credited . | |
| 354. |
What is cost concept? |
| Answer» Solution :Assets are shown in the BOOKS at cost of ACQUISITION LESS depreciation. | |
| 355. |
What is convention of materiality? |
| Answer» Solution :Items having an INSIGNIFICANT effect or being irrelevant to the users of FINANCIAL statement NEED not be disclosed. | |
| 356. |
What is convention of prudence or conservation? |
| Answer» Solution :All ANTICIPATED losses should be RECORDED in the BOOKS of account, but all anticipated or unrealized GAINS should be ignored. | |
| 357. |
What is convention of full disclosure? |
| Answer» Solution :There should be sufficient DISCLOSURE of information which is of SIGNIFICANT INTEREST to the users of financial STATEMENTS. | |
| 358. |
What is Contra Entry? |
| Answer» Solution :Contra Entry means withdrawal of CASH from bank for official use or cash deposited in the bank. As both the accounts are in the Cash Book it is signified by WRITING 'C' in the column for Ledger Folio. | |
| 359. |
What is concept of consistency? |
| Answer» Solution :Accounting PRINCIPLES and methods once SELECTED and adopted should be applied CONSISTENTLY from ONE year to ANOTHER. | |
| 360. |
whatis computer? Explainitsimportantfeatures . |
| Answer» | |
| 361. |
What is Compound Journal Entry? Give an example. |
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Answer» SOLUTION :Compound Journal ENTRY is the entry in which more than one ACCOUNT is debited or credited. For example, following is a compound entry. `{:(,,Rs,Rs),("Stationery A/c",...DR.,"2,500",),("Input CGST A/c",...Dr.,150,),("Input SGST A/c",...Dr.,150,),("""To Cash A/c",,,"2,800"),("(Being the purchase of stationery,paid CGST and SGST @ 6% each)",,,):}` |
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| 362. |
What is Cash Discount? |
| Answer» Solution :CASH DISCOUNT is the discount ALLOWED to the debtor for MAKING prompt payment or for making payment before thedue date. | |
| 363. |
What is cash basis of accounting? |
| Answer» SOLUTION :Under this BASIS, incomes are not recorded unless they are RECEIVED in cash. SIMILARLY, expenses are recorded only when they are paid in cash. | |
| 364. |
What is book value or written down value of a fixed asset? |
| Answer» Solution :It is the portion of the COST of a FIXED asset which has not yet been DEPRECIATED. The BOOK value of an asset is its cost when it is acquired. Thereafter, it is the cost LESS accumulated depreciation. | |
| 365. |
What is Capital? |
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Answer» Solution :It refers to the amount invested by theproprietor in a business ENTERPRISE. It can be EXPRESSED as : CAPITAL = ASSETS - External LIABILITIES |
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| 366. |
What is business entity Concept? |
| Answer» Solution :Business is TREATED as an ENTITY SEPARATE and distinct from its OWNERS. | |
| 367. |
What is Bank Reconciliation Statement ? |
| Answer» Solution :Bank Reconciliation Statement is a statement prepared to RECONCILE the bank BALANCE as PER CASH Book with the balance as per Banck Statement or Bank Pass Book. The reasons for differences are ASCERTAINED and presented in the statement. | |
| 368. |
What is an operating profit? |
| Answer» SOLUTION :N/a | |
| 369. |
What is Balance Sheet ? |
| Answer» SOLUTION :Balance Sheet is a statement which SETS out the ASSETS and liabilities of the business as at a certain DATE. | |
| 370. |
What is an Opening Entry? |
| Answer» SOLUTION :OPENING Entry is the Journal entry through which theclosing balances of the previous YEAR are brought forward in the CURRENT year's books of account. | |
| 371. |
What is an opening entry ? |
| Answer» Solution :Opening entry is the entry MADE in the beginning of a FINANCIAL YEAR to open the books by debiting assets and crediting LIABILITIES and capital, appearing in the Balance SHEET of the previous year. | |
| 372. |
What is an Invoice? |
| Answer» SOLUTION :INVOICE is a SOURCE DOCUMENT prepared by the SELLER of goods for credit. | |
| 373. |
What is an Income ? |
| Answer» Solution :INCOME is profit earned during the ACCOUNTING period, i.e., REVENUE MINUS expenses | |
| 374. |
What is an Asset Account ? |
| Answer» Solution :ASSET ACCOUNT is the account which RELATES to TANGIBLE or intangible asset . | |
| 375. |
What is an accounting equation? |
| Answer» SOLUTION :An accounting equation is a FORMULA of accounting which shows that the assets of a business are always EQUAL to the TOTAL of capital and LIABILITIES. | |
| 376. |
What is an Account ? |
| Answer» Solution :An account is a SUMMARISED record of transaction at one PLACE relating to a particular HEAD . | |
| 377. |
What is Accumulated Depreciation? |
| Answer» Solution :It is the total DEPRECIATION ALREADY CHARGED as expense in different accounting periods. | |
| 378. |
What is Accrual basis of accounting? |
| Answer» Solution :Under this basis, incomes are recorded when they are earned or accrued, IRRESPECTIVE of the fact whether cash is RECEIVED or not, e.g., sales made on credit will be included in THETOTAL sales of the period. Similarly, expenses are recorded when they are incurred or become due and not when the cash is PAID for them. | |
| 379. |
What is accounting period concept? |
| Answer» Solution :Entire life of an enterprise is divided into time intervals which are KNOWN as accounting PERIODS at the end of which a profit and LOSS acccount is prepared to ascertain the profit and a balance sheet is prepared to ascertain the FINANCIAL POSITION. | |
| 380. |
what isAccountinginformationsystem (AIS)? |
| Answer» | |
| 381. |
What is a Voucher? |
| Answer» Solution :A voucher is a document on THEBASIS of which transactions are FIRST recorded in the books. | |
| 382. |
What is a Trial Balance? |
| Answer» Solution :Trial BALANCE is a statement of accounts which appears in the Ledger and Cash Book SHOWING either the BALANCES or the total AMOUNTS of debit and CREDIT items. | |
| 383. |
What is a sales book? |
| Answer» Solution :It is a subsidiary BOOK which RECORDS Credit sales of goods. | |
| 384. |
What is a Simple Journal Entry? |
| Answer» SOLUTION :SIMPLE JOURNAL Entry MEANS a Journal entry in which only two accounts are AFFECTED,i.e., one account is debited and another account is credited. | |
| 385. |
What is a Purchases Return Book ? |
| Answer» SOLUTION :Purchases Return BOOK is a subsidiarybook in which the return of GOODS purchased is RECORDED. | |
| 386. |
What is a Purchases Book ? |
| Answer» SOLUTION :PURCHASES Book is a subsidiary book in which CREDIT purchases of goods DEALT in or stores and raw materialused for productionare recorded. | |
| 387. |
What is a purchase book? |
| Answer» Solution :It is a subsidiary BOOK which records Credit PURCHASES of GOODS. | |
| 388. |
What is a Petty Cash Book ? |
| Answer» SOLUTION :It is PREPARED to MAKE a recordof PETTY EXPENSES. | |
| 389. |
What is a Patty Cash Book? Why is it maintained? |
| Answer» | |
| 390. |
What is a Pay-in-Slip? |
| Answer» SOLUTION :Pay-in-Slip is a SOURCE DOCUMENT for having deposits MADE in the bank. | |
| 391. |
What is a Journal? |
| Answer» Solution :Journal is a primary book of ACCOUT in which TRANSACTIONS are FIRST recorded in a CHRONOLOGICAL ORDER. | |
| 392. |
What is a Debit Note? |
| Answer» Solution :DEBIT Note is a document evidencing that the ACCOUNT of the NAMED person is DEBITED for the reason stated therein. | |
| 393. |
What is a Contra Entry? How is it recorded? Give two examples of a Contra Entry. |
| Answer» | |
| 394. |
What is a Credit Note? |
| Answer» SOLUTION :CREDIT Note is a DOCUMENT evidencing that the credit has been granted to the named PERSON for the reason stated THEREIN. | |
| 395. |
What is a Compound Voucher? |
| Answer» SOLUTION :Voucher which records a transaction that entails multiple debits/credits and ONE credit/DEBIT is called COMPOUND Voucher. It MAY be debit voucher or credit voucher. | |
| 396. |
What is a Cheque? |
| Answer» Solution :A CHEQUE is an order in writing drawn UPON a bank to pay a SPECIFIED sum to the bearer or the person named in it. | |
| 397. |
What is a Cash Book ? What are the types of Cash Book? How is it balanced? |
| Answer» | |
| 398. |
What is a Cash Book ? |
| Answer» SOLUTION :Cash Book is Subsidiary Book in which all cash TRANSACTIONS, recripts and PAYMENTS are RECORDED. | |
| 399. |
What is a bank reconciliation statement ? |
| Answer» SOLUTION :Bank reconciliation statement is a statement PREPARED MAINLY to RECONCILE the difference between the Bank Balance SHOWN by the Cash Book and Bank Pass Book. | |
| 400. |
What is a balance sheet. What are its characteristics? |
| Answer» SOLUTION :N/a | |