2
Q:

Explain How is a journal entry recorded? 

Answer:



Q:

The accounting process involves all of the following except

A) identifying economic transactions that are relevant to the business B) analyzing and interpreting financial reports
C) communicating financial information to users by preparing financial reports D) recording nonquantifiable economic events
 
Answer & Explanation Answer: B) analyzing and interpreting financial reports

Explanation:

The three steps in the accounting process are

 

1. Identification,

2. Recording, and

3. Communication. 

 

Hence, analyzing and interpreting financial reports is not involved in the accounting process.

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Q:

What determines the value of an item?

A) the capital required to build the factory B) the unlimited wants of the consumers
C) the resources consumed in production D) the amount of goods that are produced
 
Answer & Explanation Answer: A) the capital required to build the factory

Explanation:

Value is the monetary worth of something, in this case, it is an item.

In option A, since it is talking about capital which is measured in monetary terms.

The value of an item is determined by its quality and its age. Often antiques with good quality are sold in the market with a high value and are sometimes auctioned.

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0 40
Q:

ETCS means

A) Electronic Tax Collected at Source B) Electric Tax Collected at Source
C) Enable Tax Collected at Source D) Electrical Tax Collected at Source
 
Answer & Explanation Answer: A) Electronic Tax Collected at Source

Explanation:

Tax Collected at Source (TCS) is income tax collected in India payable by the seller who collects in turn from the buyer and it is provided under section 206C of Income Tax Act, 1961 at the sale of some goods which are specified.

E - TCS  is the process of filing TCS returns through electronic media. It is necessary for government and corporate collectors to file TCS returns in its electronic form. Collectors (other than government) have the provision to file TCS returns in physical form or electronic form.

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4 181
Q:

The largest component of National Income in India is ____ ?

A) Service Sector B) Industrial Sector
C) Agriculture Sector D) Trade Sector
 
Answer & Explanation Answer: A) Service Sector

Explanation:

The  largest component of National income is service sector.

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5 509
Q:

What does drop ship mean in Accounts ?

Answer

Drop Ship refers to, a manufacturer shipping goods directly to one of its customers' customer (instead of delivering the goods to the customer that placed the order with the manufacturer).


This concept of shipping goods is called as drop ship, drop shipping or a drop shipment.

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6 841
Q:

What is the full form of SOX and what does it means in Accounting ?

Answer

Sarbanes Oxley Act. Otherwise known as Public companies Accounting reforms and investor protection Act. It was enacted in 2002 in USA after lot of scams come up on accounting framework whereby investors lose faith and confidence on accounting disclosures.

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4 811
Q:

What are the Golden Rules Of Accounting ?

Answer

Golden rules of accounting convert complex book-keeping rules into a set of well defined principles which can be easily studied and applied.



Real accounts involve machinery, land and building etc... Similarly when you credit what goes out, you are reducing the account balance when a tangible asset goes out of the organization. Debit All Expenses And Losses, Credit All Incomes And Gains. This rule is applied when the account in question is a nominal account.


Personal-Account


---Debit the receiver


---Credit the Giver


Real-Account


---Debit what comes in


---Credit what goes out


Nominal-Account


---Debit all expenses and losses


---Credit all income and gains

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1 824
Q:

Is it possible for a company to show positive cash flows but be in grave trouble ?

Answer

Absolutely. Two examples involve unsustainable improvements in working capital (a company is selling off inventory and delaying payables), and another example involves lack of revenues going forward in the pipeline.

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