Tuesday, 26 August 2014

ACCOUNTING & FINANCE INTERVIEW QUESTIONS ( 251 - 260)


251 Meaning of Charge : charge means it is a obligation to secure an indebt ness. It may be fixed charge and floating charge.

252 Appropriation : It is application of profit towards Reserves and Dividends.

253 Absorption costing : A method where by the cost is determine so as to include the appropriate share of both variable and fixed costs.

254 Marginal Cost : Marginal cost is the additional cost to produce an additional unit of a product. It is also called variable cost.

255  What are the ex-ordinary items in the P&L a/c : The transaction which are not related to the business is termed as ex-ordinary transactions or ex-ordinary items. Egg:- profit or losses on the sale of fixed assets, interest received from other company investments, profit or loss on foreign exchange, unexpected dividend received.

256 . Share premium : The excess of issue of price of shares over their face value. It will be  showed with the allotment entry in the journal, it will be adjusted in the balance sheet on the liabilities side under the head of “reserves & surplus”.

257 Accumulated Depreciation : The total to date of the periodic depreciation charges on depreciable assets.

258 Investment : Expenditure on assets held to earn interest, income, profit or other benefits.

259 Capital : Generally refers to the amount invested in an enterprise by its owner. Ex; paid up share capital in corporate enterprise.

260 Capital Work In Progress : Expenditure on capital assets which are in the process of construction as completion.




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