Saturday, 23 August 2014

BASIC ACCOUNTING & FINANCE INTERVIEW SHORT QUESTIONS (111-120)



111.Commercial banks:  Commercial banks extend foreign currency loans for international operations, just like rupee loans.  The banks also provided overdraft.

112. Development banks:  It offers long-term and medium term loans including foreign          currency loans

113.International agencies:  International agencies like the IFC,IBRD,ADB,IMF etc. provide indirect assistance for obtaining foreign currency.

 114. Seed capital assistance:  The seed capital assistance scheme is desired by the IDBI for professionally or technically qualified entrepreneurs and persons possessing relevant experience and skills and entrepreneur traits.

115. Unsecured l0ans:  It constitutes a significant part of long-term finance available to an enterprise.

116. Cash flow statement: It is a statement depicting change in cash position from one period to another.

117.Sources of cash: Internal sources-(a)Depreciation (b)Amortization (c)Loss on sale of fixed assets (d)Gains from sale of fixed assets (e) Creation of reserves External sources-(a)Issue of new shares (b)Raising long term loans (c)Short-term borrowings (d)Sale of fixed assets, investments

118. Application of cash: (a) Purchase of fixed assets (b) Payment of long-term loans (c) Decrease in deferred payment liabilities (d) Payment of tax, dividend (e) Decrease in unsecured loans and deposits

119. Budget:  It is a detailed plan of operations for some specific future period.  It is an estimate prepared in advance of the period to which it applies.


 120. Budgetary control:  It is the system of management control and accounting in which all operations are forecasted and so for as possible planned ahead, and the actual results compared with the forecasted and planned ones.

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