Question 1

Cash Reserve Ratio ( CRR) and Stautory Liquidity Ratio (SLR ) are terms most closely related to which of the following industries/markets :

Accepted Answer

Banking

Question 2

What is the difference between billable and non-billable expenses?

Accepted Answer

The terms Billable and Non-Billable expenses are normally associated with say a consultancy company where they bill consultants out to their clients Therefore Billable expenses will be paid by the client whereas Non-billable will be paid by your employer What's included in both is subject to the contract your company has with their client

Question 3

The first step in solving an Ethical Dilemma is to

Accepted Answer

identify an etical situation and ethical issues involved

Question 4

Securities and Exchange Board of India (SEBI) is related to

Accepted Answer

Share Market

Question 5

Which Bank has obtained RBI approval to open representative offices in Kuwait and Singapore?

Accepted Answer

Federal Bank has obtained RBI approval to open representative offices at Kuwait and Singapore. The bank has been the preferred banker for NRI's and the NRI friendly measures have resulted in increasing inflow of foreign remittances. The bank already has its representative offices in Abu Dhabi and Dubai and it has tied up with 110+ overseas banks/remittance partners.

Question 6

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

Accepted 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 When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount

Question 7

What is another name for a real account in accounting? is it a permanent or a temporary account? Also, what is another name for a nominal account? is it a permanent or a temporary account ?

Accepted Answer

There are broadly 2 Type of accounts 1 Personnel Accounts 2 Impersonnel Accounts Personnel Accounts is an account maintained to record transactions with persons Based on the classification of the persons personnel account can be of 1 Natural Personnel Account (Mr Ram, Mr Robert, MrRahim) 2 Artificial Person (all entities like companies, banks, municipal corporations, all statutory or non statutory bodies) 3 Representative Person: Representing group transactions for group of persons like Salary Payable Account Taxes payable account Where as Impersonnel Account shall be of Two types A Real Account BNominal Account Real Accounts are accounts to record transactions relating to Assets Like Cash, Plant & Machinery etc, These type of accounts are permanent accounts Nominal Accounts are the accounts used to record the transactions relating to Income and Expenses Like Salary, Power, Sales etc, At the end of the year all the nominal accounts are closed by transferring to Profit and loss account or Income and Expenditure account The net differnce shall be carried forwarded to Balance Sheet

Question 8

Which are the main MIS Reports of an accounts department & what the format of preparing the MIS ?

Accepted Answer

MIS report is known as Management Information System regarding the Manpower status of a particular month, place and overall It helps the Management in decision making like what are the reasons of resignation in which area attrition is high and so many things to help in decision making with the help of MIS you may prepare a lot of reports Like annual attrition region wise attrition region wise manpower graphical representation of regions manpower status and so on You may prepare the same at your endAs it will help you to prepare other such formats too I am describing you the contents with sheet wise First Sheet - Details of employee a ECode b Name of employee c Date of birth d Designation e CTC f Address for communication gPermanent address h Contact number i Blood group j Maximum qualification k Extra qualification lTotal Experience Second Sheet- Salary structure In this sheet write down the complete salary structure and make a column what is salary after any revision Third Sheet - New Joinees In this sheet write down the name of New joinees of that month with detail like CTC, Designation, DOB etc Forth Sheet - Resigned employees In this sheet write the name of employees who resigned during that particular month with details like name, designation, date of joining, Date of resignation, last working day Fifth sheet - Attrition rate Based on this MIS report, you may find out the attrition report, Qualification analysis reports, team management reports and so on can prepare a number of reports

Question 9

What is the difference between Consigner and Consignee ?

Accepted Answer

Consigner is the person who is the owner of the goods and who delivers the goods to others(consignee) Whereas Consignee is the person who receives the goods and just holds the goods and will not be the owner

Question 10

What does drop ship mean in Accounts ?

Accepted 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

Question 11

Expand CAR, in Banking Terminology?

Accepted Answer

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. 1. The capital adequacy ratio (CAR) is a measure of a bank's capital. 2. It is used to protect depositors and promote the stability and efficiency of financial systems around the world. 3. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.

Question 12

Bank Reconciliation Statement is prepared by

Accepted Answer

The Accountant typically prepares the Bank Reconciliation Statement using all transactions Bank Reconciliation Statement : Bank reconciliation is a process which prepares a statement accounting for the difference between the cash balance in the cash account of a company and the cash balance according to its bank statement This statement can help a company to verify that its bank account ending balance per the bank matches the balance on hand per the company's general ledger

Question 13

What does Earned Income Tax Credit (EITC) means ?

Accepted Answer

The United States Federal Earned Income Tax Credit (EITC) is a refundable tax credit, that helps low and medium - income individuals and couples, primarily for those who have qualifying children

Question 14

What is the minimum period of time for which one can open an FD(Fixed Deposit) account ?

Accepted Answer

7 days

Question 15

RBI controls the commercial banks through

Accepted Answer

All of the above

Question 16

NPA in banking terminology implies ______.

Accepted Answer

Non-Performing Assets

Question 17

Which Bank has been given scheduled bank status by RBI ?

Accepted Answer

Ujjivan Small Finance Bank Ltd, a wholly-owned subsidiary of Ujjivan Financial Services Ltd, has been given scheduled bank status by RBI.

Question 18

What are steps to define supplier?

Accepted Answer

Supplier should follow the check list 1 He should create confidence in the client mind 2 Services to be done (fulfilled in time) 3 Services to be done according the specification of the client 4 He should be placed the another order by doing the above three steps

Question 19

What do you mean by invoice on hold?

Accepted Answer

Invoice holds are 2 types 1)Sytem Hold 2) User Defined Holds Sytem Holds: Sytem holds the invoice if the Invoice Amt total is not equal to Invoice Distribution Amt To release the hold correct the amount and again validate the invoice User Defined Holds: These is defined by user If we do want to make payments to the validated invoice Go to particular invoice and apply hold going to Holds tab

Question 20

The largest component of National Income in India is ____ ?

Accepted Answer

The largest component of National income is service sector.

Accounting and Finance Questions