Finance FAQs

What is an interest sensitive good?
Things like housing and autos tend to be affected by changes in interest rates because financing is typically required to make such purchases. If financing becomes more expensive due to an increase in interest rates, sales in these goods tend to b...... More »
What is meant by daily accrual and booking?
Meaning of Accrual: Revenues and costs are accrued (gathered), that is recognized as they are earned or incurred (and not as money is received or paid) and recorded in the financial statements of the periods to which they relate. Accrual basis of ...... More »
What is the difference between provision and reverse?
Provisions are created in books as they are anticipated. Example: provision for depreciation Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends. ...... More »
Where should TDS received should show in balance sheet?
Assets Side: Advance In-Come Tax Ledger in current year ...... More »
What is the TDS effect in balance sheet if TDS receipts?
In Assets Side: Advance In-Come-Tax A/c Dr with TDS received Amount and Party A/c Cr with TDS received Amount ...... More »
What are the golden rules of accounting?
Personal- Debit the receiver Credit the Giver Real- Debit what comes in Credit what goes out Nominal- Debit all expenses and losses Credit all income and gains ...... More »
Can I take service tax on freight outward?
Yes, you can take tax on freight outward. Because you are paid freight inclusive of service, tax so you can full credit availed on any expenditure where you paying service tax amount. ...... More »
What is service tax?
When any employer provides any service to his customer, which income is excess under the tax then company liable for the pay tax. Service tax charged at rate 12 %( India) + 3% E.Cess & H. & E.Cess =12.36% In ...... More »
What is inventory management?
Inventory management is an automated process of managing the stock of products and the various things involved with it Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and rela...... More »
What is an adjusting journal entry?
Adjusting entries are those entries that passed to rectify an error or wrong entry already made some accounting soft wares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting ...... More »