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Home Interview Accounting and Finance Comments

  • Question
  • Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings ?


  • Correct Answer
  • Capital expenditures are capitalized because of the timing of their estimated benefits ? the lemonade stand will benefit the firm for many years The employees? work, on the other hand, benefits the period in which the wages are generated only and should be expensed then This is what differentiates an asset from an expense 

  • Tags: Bank Clerk, Bank PO

    Accounting and Finance problems


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    • 1. What is the journal entry process from the time of generating an invoice to receiving payment?
    • Discuss
    • 2. What items would you verify when processing an expense report /invoice for payment?
    • Discuss
    • 3. How Would You Assist an Employee Whose Tax Withholdings Are Inaccurate?
    • Discuss
    • 4. Headquarters of State Bank of India is in

    • Options
    • A. Noida
    • B. Mysore
    • C. Mumbai
    • D. Hyderabad
    • Discuss
    • 5. Which is the largest foreign bank in India ?

    • Options
    • A. HDFC Bank
    • B. American Express Bank Ltd
    • C. DBS Bank Ltd
    • D. Standard Chartered Bank
    • Discuss
    • 6. Contra-entries are passed only when

    • Options
    • A. Simple cash book is prepared
    • B. Double column cash book is prepared
    • C. Three column cash book is prepared
    • D. None of the above
    • Discuss
    • 7. The main components of market risk are a) Liquidity risk b) Interest rate risk c) Currency risk

    • Options
    • A. Only a
    • B. both a and b
    • C. only c
    • D. all a, b and c
    • Discuss
    • 8. Economists refer to purchases of stocks and bonds as investment.

    • Options
    • A. TRUE
    • B. FALSE
    • Discuss
    • 9. What is account payable? How we pass the entries in account payable and related all the question based on account payable?
    • Discuss
    • 10. What steps would you take before approving an invoice for payment?
    • Discuss


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