Q) Define Marginal Cost?
A. Suppose you have to produce an additional unit of output. The estimated cost of additional inputs to produce that output is actually the marginal cost.
Q) Define Partitioning in accounting?
A. It is a kind of groups made on the basis of same responses by a system.
Q) Mention what is General ledger account?
A. The General ledger account is an account where the company records all the information for its various expenses and income types into separate accounts.
Q) What is the general classification of accounts that usually ledger account involve?
A. The general classification of accounts that usually ledger account involves are Assets- Cash, Accounts Receivable, Liabilities- Accounts Payable, Loans Payable Stockholders’ equity- Common Stock
Q) Mention what are things will not be included in bank reconciliation statement?
A. In a bank reconciliation statement, following thing can be excluded. Bank Charges or Interest debited by bank Banks direct payment not entered in Cash book.
Q) Under the accrual basis of accounting, when revenues are reported in the accounting period?
A. When service or goods have been delivered, then revenues are reported in the accounting period.
Q) Under what type of account do the unearned revenues fall?
A. The unearned revenues falls under “Liability” account.
Q) Mention whether the account “Cash” will be credited or debited, when a company pays a bill?
A. The account “Cash” will be credited when a company pays a bill.
Q) Mention what is assets minus liabilities?
A. Assets minus liabilities is equal to owners’ equity or stockholders equity.
Q) Entries to revenues accounts such as Service Revenues are usually?
A. Entries to revenues accounts such as Service Revenues usually go into credit side.
Q) Explain what the difference between accumulated depreciation and depreciation is expense?
A. The difference between accumulated depreciation and depreciation expense is that Accumulated depreciation: It is the total amount of depreciation that has been taken on a company’s assets up to the date of the balance sheet
Depreciation expense: It is the amount of depreciation that is reported on the income statement.
Q) Differentiate between provision and reserve?
A. Provisions are the liabilities or the anticipated items such as depreciation. You can say provisions are expenses. Reserves are the profits of any company and a part of that profit is placed back to
the business to keep it sustainable in tough times of a company.
Q) Define Offset accounting?
A. Offset accounting is one that decreases the net amount of another account to create a net balance.
Q) Define overhead in terms of accounting?
A. It is the indirect expenditure of a company such as salaries, rent dues etc.
Q) Define trade bills?
A. We know that all types of transactions need to be documented. The trade bills are the documents, generated against each transaction.
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