Finance General Faqs

What is an interlocking accounting system?
The interlocking accounting is a system where the cost and financial accounts are maintained independently of each other, and in the cost account, no attempt is made a separate record of the financial account transaction. ...... More »
What is accounting for plant assets?
Plant Assets are mainly installations in a factory. ...... More »
What are the basic assumptions in accounting?
Economic Entity Assumption Going Concern Assumption Monetary Unit Periodicity Assumption ...... More »
What are Source documents in accounting?
Source documents are those documents in which all kinds of business transactions are recorded. These include invoice, sales order, purchase order, debit note, credit note, goods received note; goods dispatched note, quotation, statement, remittanc...... More »
What is mutual fund sub accounting?
Mutual fund sub accounting is a way to "clear" (the process of buying and selling) the mutual fund transactions. An intermediary record keeps all of the individual shareholder account information, such as the individual balances and individual tra...... More »
What is Purchase returns Accounting.
"Purchase returns" is the entry made in the journal that refers to "Unsatisfactory or defective merchandise/goods which is returned back to the supplier". ...... More »
What is the difference between accounting and bookkeeping?
Bookkeepers perform a critical function for the firms and organizations they serve. Regularly challenged to maintain precise and accurate records, bookkeepers produce the vital reports that keep management up to date on the financial condition of ...... More »
What are the disadvantages of manual accounting?
1) Manual records are very difficult to be maintained safe 2) Manual records are subject to greater human error 3) Business can see itself in fines and penalties if records are lost 4) Manual records are easier to be falsified, modifie...... More »
How many accounting standards are currently published?
There are total of 9 accounting standards. ...... More »
What is the basic accounting equation?
Assets = Liabilities + Owners Equity ...... More »