Question 1

ETCS means

Accepted Answer

Tax Collected at Source (TCS) is income tax collected in India payable by the seller who collects in turn from the buyer and it is provided under section 206C of Income Tax Act, 1961 at the sale of some goods which are specified. E - TCS is the process of filing TCS returns through electronic media. It is necessary for government and corporate collectors to file TCS returns in its electronic form. Collectors (other than government) have the provision to file TCS returns in physical form or electronic form.

Question 2

What is the full form of SOX and what does it means in Accounting ?

Accepted Answer

Sarbanes Oxley Act Otherwise known as Public companies Accounting reforms and investor protection Act It was enacted in 2002 in USA after lot of scams come up on accounting framework whereby investors lose faith and confidence on accounting disclosures

Question 3

Which among the following is an asset for a bank?

Accepted Answer

Asset means anything that can be converted into cash. Here in banks, the loans disbursed by Bank to its customers is considered as assets because when they are cleared by them, then they are directly converted to cash.

Question 4

When an already listed organisation makes fresh issue of securities to the public, it is known as ________.

Accepted Answer

FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base. A follow-on public offer (FPO) is also called Further Public Offer.

Question 5

Which small finance Bank is included in the second schedule of the Reserve Bank of India Act, 1934 ?

Accepted Answer

Suryoday

Question 6

When a debtor owes several debts to a banker and makes a payment, the right of appropriation lies with

Accepted Answer

The Debtor

Question 7

Which payment method typically charges the highest interest rates?

Accepted Answer

Both Credit cards and Payday loans payment methods typically charges the highest interest rates. When compared Payday loans seems to charge a little bit higher interest rates than Credit Cards interest rates.

Question 8

Which is the largest foreign bank in India ?

Accepted Answer

Standard Chartered Bank Standard Chartered Bank have been operating in India since 1858.

Question 9

Headquarters of State Bank of India is in

Accepted Answer

State Bank of India (SBI) is the largest public sector banks in India. It was the first bank established in India as Bank of Calcutta in 1806 and then Imperial Bank of India and then it became State Bank of India on 1st July 1955. The Headquarters of State Bank of India is in Mumbai, Maharashtra.

Question 10

How Would You Assist an Employee Whose Tax Withholdings Are Inaccurate?

Accepted Answer

This question illustrates whether the applicant has experience changing employee income tax withholding amounts The applicant should be able to describe the necessary forms to use and the process for changing the information in the payroll system

Question 11

What items would you verify when processing an expense report /invoice for payment?

Accepted Answer

Employee Travel and Expense Report (ETER ) / Direct Pay / Unencumbered Goods and Services - The ETER is examined for compliance with Travel policy by the accounting clerk prior to submission to Accounts payable - Accounts Payable enters ETER Information into Banner as a Direct pay, generates a Banner invoice number, and records invoice information - Reimbursement checks for ETERs will be processed within five business days after a completed and correct ETER is received by Accounts payable and scheduled for payment in the payment cycle following - ETERs should be submitted within 60 calendar days of incurring the expenses TEARs submitted for expenses older than two months will not be processed nor reimbursed

Question 12

What is the journal entry process from the time of generating an invoice to receiving payment?

Accepted Answer

When an invoice is generated and sent to the client/customer, the JE to be passed is debit customer account and credit revenue/accounts receivable account When payment is received from customer, then debit bank account and credit the customer account concerned

Question 13

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 ?

Accepted 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

Question 14

Contra-entries are passed only when

Accepted Answer

Contra-entry is the entry which effected the both sides in cash book. It is occured in three times, i.e., 1.Cash deposited in to bank, 2.Cash withdrawn from the bank for office use, and 3.Receivable cheque deposited in to the bank in another day.

Question 15

The main components of market risk are a) Liquidity risk b) Interest rate risk c) Currency risk

Accepted Answer

all a, b and c

Question 16

Economists refer to purchases of stocks and bonds as investment.

Accepted Answer

FALSE

Question 17

What is account payable? How we pass the entries in account payable and related all the question based on account payable?

Accepted Answer

Accounts Payable is a short term liability of an organization It's a process by which a company buys goods and services on credit and is billed in the form of an invoice, which states the terms and conditions of the payment Accounts Payable is recorded as a current liability in the balance sheet All accounts paayble entries are to be coded under the right G/L accounts to have an accurate picture of the company's short term liability

Question 18

What steps would you take before approving an invoice for payment?

Accepted Answer

Following steps should be taken >Validate the invoice once it is matched for checking any holds >If workflow is implemented , Initiate approval for the invoice Once the invoice is approved/Approrval not required(status in case WF is not implemented) you can go for payments >Create accounting after approval of invoice Finally for payments you need to format, build ------------------------------------------------------------------------------- Before making payment the following steps should be taken 1 invoice amt, date, qty, quy, 2 invoice duplication or not 3 rectification of any Errors in invoice ------------------------------------------------------------------------------ Before hand over the invoice or dispatch the materials 1we have to receive perchase order from the customer 2Then PDC cheque, cash or current dated chq for dispatch the materials 3have to take signature from the customer for the proof of goods recieve ------------------------------------------------------------------------------- We must check the invoice thoroughly (1) Date of Invoice (2)Qty,Rate,Tax Levid

Question 19

What is FBT (Fringe Benefit Tax)?

Accepted Answer

The tax payable on a non-salary benefit provided to an employee or an associate of the employee The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee

Question 20

What is diffrence between automatic Payments Batches and automatic payments?

Accepted Answer

Automatic payments batch means auto payment is done on the bases of the batch, which u created for the payment of particular pay group etc Automatic payments means auto payments is done on the bases of single transaction u selected base for the payments

Accounting and Finance Questions