Finance General Faqs

What is retail banking?
Retail banking refers to the banking done with the retail client (e.g. the normal people) rather than business or organizational customers. ...... 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 the difference between personal account real account and nominal account?
The total business transactions are divided in to three They are Transactions related to persons, Transactions related to Things, Transactions related to incomes & expenditures. In accountancy we have three types of accounts they are - persona...... More »
What are trade bills?
Every transaction must be supported by any document. A trade bill is a supporting document of business activities like purchases, sales, receipts, payments etc... ...... More »
What is double entry book keeping?
In double entry book, keeping method a journal entry is posted to both respective accounts for each transaction. Let us say for sales transaction, debit entry posted to cash account credit entry posted to sales account. Therefor...... More »
What is dividend warrants?
Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and...... More »
What is Letter of Credit?
LC (Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another. This set includes that of invoices, shipping documents, grantees and others. ...... More »
What are the four classifications of Bad and Doubtful Debts as per the context of the Bank?
Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. They are 1. Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended ...... More »
What is a Comprehensive Income?
Items GAAP does not want us to record in Income Statement. GAAP does not want financial statements provider to mislead users. Ex. items will record in comprehensive income are Unrealized gain or loss on available-for-sales securities; Unrecognized...... More »
What is the difference between Perpetual and Periodic Inventory systems?
In perpetual inventory system, the inventory account is adjusted continually throughout the accounting period. Whereas in the Periodic Inventory System: - Recording inventory transactions periodically than recording them continually. ...... More »