Finance FAQs

What is an Oligopoly?
Oligopoly is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product. Several characteristics of an Oligopoly:More »
Explain the accounts payable cycle.
Demonstrate your knowledge of this cycle - the length of time it takes the company to pay its accounts payable - and what the implications of the length of this cycle are for the company, for example cash flow. ...... More »
What steps would you take before making a payment?
1. We should verify that any advances have been made. 2. See that all the services/goods delivered according to bill 3. Any query is there to attend on that ultimately can be made payment. ...... More »
What are steps to define supplier?
Supplier should follow the check list. 1 He should create confidence in the client mind 2 Services to be done (fulfilled in time) 3 Services to be done according the specification of the client 4 He should ...... More »
When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?
Fiscal year ...... More »
What is the difference between the accrual accounting and cash accounting?
The Cash Basis of accounting reports only transactions that have been completed in the current reporting period - or - what has "hit" the checking account (assuming all funds are deposited and disbursed only from that account) - The Accrual Basis ...... More »
What is the difference between financial accounting and management accounting?
Very briefly, the difference has to do with the needs of the user. Management accounting for is the internal users of an entity and Financial Accounting is for the external users. Internal users (management) may be interested in...... More »
What is the distinction between cost accounting and management accounting?
Cost accounting is concerned with cost accumulation for inventory valuation to meet the requirements of external reporting and internal profit measurement. Management accounting relates to the provision of appropriate information for decision...... More »
What is debit and credit from the banks point of view?
Credit what comes in Debit what goes out ...... More »
What is Trial Balance?
It is statement of balances of all the accounts in the ledger prepared to prove the arithmetical accuracy of the books of accounts. ...... More »