Finance FAQs

You have a painting that is $320 that is selling for 20 percent off. How much is the discounted price?
Calculate quickly: What's 80 percent of $320? The answer's $256. Even in a question like this, if you are good with numbers and use shortcuts, don't be afraid to talk aloud. For example: 80 percent of $320 can be broken down to a calcu...... More »
What is the sum of the numbers from one to 50?
Another question that recent analyst hires often report receiving. This is a relatively easy one: pair up the numbers into groups of 51 (1 + 50 = 51; 2 + 49 = 51; etc.). Twenty-five pairs of 51 equals 1275. ...... More »
What is OLAP in Business Intelligence?
Online Analytical Processing, a category of software tools that provides analysis of data stored in a database. OLAP tools enable users to analyze different dimensions of multidimensional data. For example, it provides time series and trend analys...... 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 »
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 qualification do you need to become an accounting professional?
As an accounting professional in the state of Maryland, the requirements are 150 credit hours in order to sit for the CPA examination. The exam is given in 4 parts and all 4 parts can be taken separately. Once you have passed all 4 for parts of th...... More »
What are the limitations of accounting ratios?
Ratios place significant emphasis on short-term results. Ratios such as EPS and the ROCE are subject to accounting conventions that might deter businesses pursuing policies that are in their long-term interest. ...... More »
In which ways is math used in accounting
Primarily only addition, subtraction, multiplication, and division are used in accounting as follows: Addition: Summing accounts for inclusion in financial statements (i.e. many different cash accounts are summed to equal "cash" in balanc...... More »
What are the elements of the accounting equation?
The elements of accounting are Assets, Liabilities, and Owner Equities. The way to remember this would be through the acronym ALOE The accounting equation is Assets = Liabilities + Owners' Equities ...... More »
What are cost accounting and its applications?
Cost Accounting is a method by which an accountant can determine the cost of production of a "widget". This is used in accurate reporting of Cost of Goods Sold and consequently the Gross Income of a company. A Cost Accountant will follow the "widg...... More »