Accounting and Finance Questions

Q:

SIP full form is

A) Sudden Investing Plan B) Systematic Investment Plan
C) Savings Investmets Plan D) None of the above
 
Answer & Explanation Answer: B) Systematic Investment Plan

Explanation:

SIP is Systematic Investment Plan.

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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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Subject: Accounts Receivable Exam Prep: Bank Exams , CAT
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Q:

Which of the following is not economic investment?

A) the piling up of inventories on a grocer's shelf B) the purchase of a drill press by the Ajax Manufacturing Company
C) construction of a suburban housing project D) the purchase of 100 shares of AT&T by a retired business executive
 
Answer & Explanation Answer: D) the purchase of 100 shares of AT&T by a retired business executive

Explanation:
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Q:

What is the Debit Balance recovery? How we can recover if we wont have any future transactions from supplier?

Answer

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.

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Subject: Accounts Payable

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Q:

Goods that are excludable include both

A) public goods and common resources B) common resources and private goods
C) natural monopolies and public goods D) private goods and natural monopolies
 
Answer & Explanation Answer: D) private goods and natural monopolies

Explanation:

Goods that are excludable include both private goods and natural monopolies.

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Exam Prep: AIEEE , Bank Exams , CAT
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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
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8 2920
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:

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
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