Question 1

What is the meaning of TDS? How it is charged?

Accepted Answer

TDS Meaning : TDS means TAX DEDUCTABULE AT SOURCE It is charged on Base Amount TDS is tax charged by the customer who gets the services from Vendor or supplier Here Customer is responsible to charge it and pay to the government Different types of TDS : 1) TDS on salary has to be deducted on salary paid to employee by employer if it crosses the tax limit And pay to the government on or before due date 2) In case of TDS on contractors or profession or others, there is slab that min tax, surcharge, education cess plus higher education cess, it is different and finance minister may change or keep same or remove in every year budget Secondly you can deduct the TDS on bill amount while paying or if advance is paid

Question 2

Explain End to End AP Process?

Accepted Answer

Accounts payable has got noting to do with purchase of goods and services, it's work is to pay the eligable invoices End to End Process of AP - Process the vendor invoices into system - Work and resolve the discripencies of the invoices (if any) - Make the payments to the invoices as per the agreement - Resolve the issues ( if any ) regarding the invoice payments

Question 3

In which year SBI was Nationalised ?

Accepted Answer

1955

Question 4

what type of account appear on a post closing trial balance?

Accepted Answer

The types of accounts that appear on the post-closing trial balance are the permanent accounts, Assets, Liability and Owner's capital Permanent accounts is also called real accounts

Question 5

The total sum of the goods and services produced in a country in a year, minus depreciation is called as ________.

Accepted Answer

Gross Domestic Product : It is the total value of all final goods and services produced within the boundary of country during the given period of time. Gross National Product : It is the total value of the total output or production of final goods and services produced by the nationals of a country during a given period of time. Gross National Income : It is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign residents, minus income earned in the domestic economy by non-residents. Net National Product : The total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.

Question 6

What is a Non-PO Invoice?

Accepted Answer

A non-po is an invoice which does not have po(purchase order)However, these invoices requires approval for authorized person/persons to process for payment

Question 7

What is the full form of the trem WIRE in wire payment ? Explain the process for making and receiving the payment through WIRE?

Accepted Answer

There is no specific abbreviation for the term WIRE because when the payment is being made using this option, you will not see the physical movement of funds It is all electronic It is just like a current passes through Wire Therefore Electronic movement of funds is campared with WIRE

Question 8

What is Demat Account ?

Accepted Answer

The way in which a bank keeps money in a deposit account in the same way the Depository company converts share certificates into electronic form and keep them in a Demat account

Question 9

Explain what is BRS?

Accepted Answer

BRS - Bank Reconciliation Statement A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date The differences may arise because of the following reasons: - Cheques deposited into bank but not yet collected by bank - Cheques issued by the organization but not yet presented for payment - Cheques directly deposited by customers into the bank - Bank charges debited by bank - Interest credited or some receipts directly collected by bank based on org request - Some payments directly made by bank based on the organizations request So, the statement shows the reasons as what are the reasons for difference in balance

Question 10

How much time needs to pass for an A/R account to be considered delinquent?

Accepted Answer

After 90 days of the due date

Question 11

What entry is recorded when $75.00 worth of supplies are purchased on account?

Accepted Answer

Purchasing good two kinds of entry Either Cash or Credit If Cash Purchase A/c ------ Dr xx To Cash A/c (Being good purchase on cash) If Credit Purchase A/c ---- Dr To Supplier A/c (Being goods purchase on Credit)

Question 12

What is STPI ? why STPI knowledge required in Accounts Payable?

Accepted Answer

Software Technology Parks of India (STPI)Some of the software service providers will get exemption from STPI for their software exports In accounts payable may be we need to define the vendor STPI location wise In India we have different STPI location If one vendor supplying services or materials to all OR some of the STPI locations we need to maintain the same vendor STPI wise

Question 13

Which Bank has acquired payments wallet Freecharge for Rs. 373 crore in an all-cash deal ?

Accepted Answer

Axis Bank

Question 14

The threshold limit upto which coins can be issued as per the Coinage Act 2011 ?

Accepted Answer

1000

Question 15

what is difference between account payable and bills payable?

Accepted Answer

Accounts payable refer to the current liability of a business or an organization That is the unsettled payments in a business or an organization refers to Accounts payable Bills payable refers to bills settled In other words the paid and accepted recorded bills in a business or an organization refers to bills payable

Question 16

What is the difference between back end collections and front end collections?

Accepted Answer

Back end collections means like commission on sales or commission on providing services Front end collections means like sales and providing services

Question 17

Disinvestment means-

Accepted Answer

Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary.

Question 18

What is the difference between debenture and preference share ?

Accepted Answer

The difference between Debentures and Preferential Shares is as follows: 1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company 2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses 3) A debenture holder would be paid the capital invested at the end of a stipulated term A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable 4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists

Question 19

What is a Parked Report ?

Accepted Answer

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

Question 20

What is 'Three-Way Match' refers in Acconting ?

Accepted Answer

In accounting, the Three-way Match refers to a procedure used when processing an invoice received from a vendor or supplier The three-way match is an important step in safeguarding an organization's assets The purpose of the three-way match is to avoid paying incorrect and perhaps fraudulent invoices Here Three-way refers to the three documents involved : * Vendor's invoice which was received and will become part of an organization's accounts payable if approved * Purchase order that was prepared by the organization * Receiving report that was prepared by the organization And Match refers to the comparison of the quantities, price per unit, terms, etc appearing on the vendor's invoice to the information on the purchase order and to the quantities actually received After the vendor's invoice has been validated by the three-way match, it can be further processed for payment

Accounting and Finance Questions