Accounting and Finance Questions

Q:

What is the difference between finance and accounts? most of the companies having a different section like finance and accounts. why they aren't had only single section neither finance nor accounts?

Answer

Finance:It is the branch of economics that studies the management of money and other assets.In simpler terms it can be defined as the commercial activity of providing funds and capital.It addresses questions like -- what funds are required by the org & How they can be raised &  How they have to be allocated etc.


Accounts: It is the occupation of maintaining and auditing records and preparing financial reports for a business. Accounts provides quantitative information about finances. It addresses issues like what amount of funds have been allocated to various activities, how the book-keeping is being done etc.


Both functions are distinct but complimentary to each other.


Finance and accounts are highly specilized and distinct areas and hence most organizations have seperate sections of finance and accounts.

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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

3 2732
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:

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 2717
Q:

The primary Economic function of the Financial system is to

A) Providing experts advice to investors and savers B) Match one person's savings with another person's investment
C) Keeping interest rates low D) Match one person's consumpion expenditure with another person's capital expenditure
 
Answer & Explanation Answer: B) Match one person's savings with another person's investment

Explanation:

The primary Economic function of the Financial system is to match one person's savings with another person's investment.

 

The_primary_Economic_function_of_the_Financial_system_is_to1556258311.png image

 

* As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner.

* They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities.

* These financial services help to make the overall economy more efficient.

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

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Q:

What is retropay?

Answer

It is a process that recaculates the amount to pay an employess in the current period to account for retrospective changes that occurred in previous payroll periods.

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Q:

When an account becomes uncollectible and must be written off

A) Accounts Receivable should be credited B) Sales Revenue should be debited
C) Allowance for Doubtful Accounts should be credited D) Bad Debt Expense should be credited
 
Answer & Explanation Answer: A) Accounts Receivable should be credited

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

1 2653
Q:

What is Trail Balance?

Answer

After posting the all accounts in the Ledger a statement is prepared to showing debit and credit balances.Debit balances must be tally with the Credit side balance is called trial balance


 

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