Saturday, 23 August 2014

BASIC ACCOUNTING & FINANCE INTERVIEW SHORT QUESTIONS (121-130)



121. Cash budget:  It is a summary statement of firm’s expected cash inflow and outflow over a specified time period.

122. Master budget:  A summary of budget schedules in capsule form made for the purpose of presenting in one report the highlights of the budget forecast.


123. Fixed budget:  It is a budget which is designed to remain unchanged irrespective of the level of activity actually attained.

124. Zero- base- budgeting:  It is a management tool which provides a systematic method for evaluating all operations and programmes, current of new allows for budget reductions and expansions in a rational manner and allows reallocation of source from low to high priority programs.

125. Goodwill:  The present value of firm’s anticipated excess earnings.

126. BRS:  It is a statement reconciling the balance as shown by the bank pass book and balance shown by the cash book.

127. Objective of BRSThe objective of preparing such a statement is to know the causes of difference between the two balances and pass necessary correcting or  adjusting entries in the books of the firm.

128. Responsibilities of accounting:  It is a system of control by delegating and locating the responsibilities for costs.

129. Profit centre:  A centre whose performance is measured in terms of both the expense incurs and revenue it earns.


130. Cost centre:  A location, person or item of equipment for which cost may be ascertained and used for the purpose of cost control.

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