Accounting and Finance Questions

Q:

Explain What is the difference between debenture holders and creditors ?

Answer

Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

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Subject: Bank Interview Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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Q:

Which one of the following is not a 'Money Market Instrument'?

A) Commercial Paper B) Equity Shares
C) Certificate of Deposit D) Treasury Bills
 
Answer & Explanation Answer: B) Equity Shares

Explanation:

Money market instruments are debt securities that generally give the owner the unconditional right to receive a stated, fixed sum of money on a specified date.


There are several money market instruments in most Western countries, including treasury bills, commercial paper, bankers' acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage- and asset-backed securities.

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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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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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Filed Under: Accounts Receivable
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

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Q:

How is a journal entry recorded?

Answer

A journal entry is recorded accourding to the rules of debit and credit.for example goods sold for Rs 50000 for cash ----to record this -- identify the accounts involved-- i.e.goods A/cand Cash A/cgoods is a real account and cash is also a real accountdebit and credit rule for Real accounts is DEBIT WHAT COMES IN CREDIT WHAT GOES OUT according to this--cash is coming to the organisation and goods is leaving from the organisation--Entry for this is Cash A/c Dr. 50000 to Goods A/c or Sales A/c 50000 ( For Cash Sales )

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Q:

The journal entry to record a credit sale is

A) Accounts Receivable B) Accounts Payable
C) Both A & B D) None of the above
 
Answer & Explanation Answer: A) Accounts Receivable

Explanation:

The journal entry to record a credit sale is Accounts Receivable. Credit sale is nothing butthe customers pay at the time of buying.

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Exam Prep: AIEEE , Bank Exams , CAT
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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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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

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Q:

What is a Parked Report ?

Answer

You can use document parking to enter and store (park) incomplete documents in the SAP System without carrying out extensive entry checks.

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Subject: Accounts Payable Exam Prep: Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO

8 3064
Q:

Managerial Accounting is also called

A) Control accounting B) Management accounting
C) Cost accounting D) Both B & C
 
Answer & Explanation Answer: D) Both B & C

Explanation:

Managerial Accounting is also called as Management accounting or Cost accounting. It is the process of identifying, measuring, analyzing, interpreting, and communicating information to managers of an organization. Then that managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.

 

managerial_accounting_is_also_called1561444774.jpg image

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Filed Under: Accounts Payable
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Job Role: Analyst , Bank Clerk , Bank PO

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