Question { 10461 }

What is the diff. between gross profit and net profit?

Answer

Gross Profit represents profit relating to the core
operation or extent of core operations of the firm, where
as net profit represents over all profitability of the firm.

Question { 18256 }

what is cost of goods sold?

Answer

Where the cost of expenditure incurred for the production
of product from the stage of conversion of raw material to
finished product. where cost of goods can be state as :
COGS=Opening stock+purchases+manufacturing expenses/direct
expenses-Closing stock

Question { Banking, 242505 }

what is the meaning of preliminary expenses and how you
shown in balance sheet

Answer

Preliminary expeneses are the nature of fictitious assets.
These are the formation expenses of the company before any
operation of the busines held. These are transferred to
the profit and loss accounts and written off every year
from the profits of the business. These expenses are shown
on the assets of the balance sheet under the head
misceallenous.

Question { 15917 }

What is the Accountancy ? Give the Answer in one sentence.

Answer

Accounting is an art and science of recording, classifying,
summarising, analysis and interpret the financial
statements.

Question { RRDonnelley, 11726 }

capital expenditure , revenue expenditure

Answer

Capital Expenditure : Expenditure incurred for the
particular purpose and the benefit enjoyed for the ever
lasting future.

Revenue Expenditure : Expenditure incurred for the
particular purpose and the benefit enjoyed within the
accounting period.

Question { Capital IQ, 15815 }

whatis mean by accured income?

Answer

Income earned but not received. (The goods or services
provided but the benefit yet to be received)

Question { WNS, 71353 }

What is the types of accounts & it's rules ?

Answer

Type of accounts are classified into three categories :
Personal accounts : The personal accounts are again
classified into Personal and impersonal accounts


Personal accounts : In which the transactions
directly indicate the natural persons. Eg. Ram, sharma
Impersonal accounts : In which the transactions
indirectly indicate the artifical persons created by the
law. ICICI BANk

Debit the receiver
Credit the giver

Real accounts : For general operating of the firm, it
requires some assets like fixed assets and current assets.
These types of assets are classified under this head. Eg.
furniture, fixtures,inventory
What comes in Debit
What goes out is Credit

Nominal accounts : The expenes incurred for the operating
of the firm, will be classified under this head. Eg. Wages,
Salaries(denpending on the transactions)
All expenses and losses debit
All incomes and gains credit

Question { Capital IQ, 18635 }

What is Earning per share?

Answer

It is the returns or profit on every share invested in the
company for those who bear the risk returns on their
investment.
Ratio for EPS.
=PAT(profit after tax)-preferred dividend/No. of Shares
held.

Question { 9721 }

What is the Formula of debt equity ratio?
Also Define its importance in accountancy.

Answer

Debt equity ratio is classified under the head leverage or
capital structure ratio. That to long term ratios.
Importance of debt equity ratio : Where it shows the
relative claims of the creditors and shareholders of the
company. Creditors look into the financial strength of the
company in providing the long term debt. where
shareholder's having the right against the assets(profits)
of the company.

=Long term liabilities/Shareholders funds.

Shareholders funds = Equity+Preference+Reserves-Ficticious
assets