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Q:

# What is ‘Amortization’?

Q:

In preparing a bank reconciliation, outstanding checks are

 A) Deducted from the balance sheet B) Added to the bank balance C) Deducted from the bank balance D) Added to the balance sheet

Answer & Explanation Answer: A) Deducted from the balance sheet

Explanation:

If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding checks.

If an outstanding check of the previous month does not clear the bank in the current month, the check will remain on the list of outstanding checks until the month that it does clear the bank.

In the bank reconciliation process, the total amount of the outstanding checks is deducted from the balance appearing on the bank statement.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

Reconciling the bank statement monthly is an example of

 A) establishment of responsibility B) independent internal verification C) documentation procedures D) segregation of duties

Answer & Explanation Answer: B) independent internal verification

Explanation:

Reconciling the bank statement monthly is an example of independent internal verification

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

The yield to maturity on a discount bond is

 A) equal to both the coupon rate / current yeild B) less than the current yeild but greater than the coupon rate C) greater than both the coupon rate / current yeild D) equal to the current yeild but greater than the coupon rate

Answer & Explanation Answer: A) equal to both the coupon rate / current yeild

Explanation:

Yield to maturity is a concept for fixed rate bonds and is the internal rate of return i.e. the rate at which future flows are discounted on a compound basis to give the present value of the bond including accrued interest.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 87
Q:

Tally package is developed by

 A) Tally Solutions B) Coral Softwares C) Vedika Softwares D) Peutronics

Answer & Explanation Answer: A) Tally Solutions

Explanation:

Tally package is developed by Tally Solutions.

Tally Solutions, then known as Peutronics, was co-founded in 1986 by Shyam Sunder Goenka and his son Bharat Goenka.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 83
Q:

When referring to student loans what is a grace period?

 A) 6 months B) 12 months C) 18 months D) 24 months

Answer & Explanation Answer: A) 6 months

Explanation:

6 months after graduating or quitting school when you have to start paying back the loans.

A grace period is one term that’s provided for student loans that allow you to delay payments up to a certain length of time, without penalty. During a grace period no late charges would apply, and the loan would not risk falling into default for missed payments. The grace period allows you time to find financial stability prior to having to make payments on your student loans.

Many students use student loans to help pay for their college expenses, including tuition, books, room and board, and other living expenses. Students are expected to repay these loans when they graduate.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

1 120
Q:

How can investors receive compounding returns?

 A) By investing their earnings back into their original investment B) By diversifying their investment portfolio C) By selecting a savings account that has a higher interest rate D) By transferring their earnings back into high-risk investment

Answer & Explanation Answer: A) By investing their earnings back into their original investment

Explanation:

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 202
Q:

The accounting software Tally was developed by

 A) Wipro B) TCS C) HCL D) Infosys

Explanation:

Tally is one of the best business accounting software for accounting, inventory, payroll. It is economical and one of the most popular ERP software solutions available in the industry.

Tally, an accounting software was developed by the multinational company TCS - Tata Consultancy Services.

Filed Under: Bank Interview - Accounting and Finance
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

0 99
Q:

A check returned by the bank marked nsf means

 A) Cheque has been forged B) Cheque can't be cashed being illegal C) There are not sufficient funds in your accoun D) Bank can't verify your identity

Answer & Explanation Answer: C) There are not sufficient funds in your accoun

Explanation:

NSF means - Not Sufficient Funds.