Question { Deloitte, 9811 }

What do you mean by Leverage?

Answer

There are various types of fixed cost involved in business.

For example payment of Monthly Rent , Salary of permanent
employees etc. Fixed cost relating to operating cost of the
business give rise to operating leverage. The total cost
consist of variable & fixed cost. Variable cost increases
with increase in no of units produced/sold where as fixed
cost decreases with increase in no of units produced/sold
upto a certain capacity level.

Similarly the effect of such increase & decrease in sales
over profitability largely depends on the % of variable &
fixed cost in total cost.For exp. if in total cost variable
cost % is more as compared to fixed cost than in case of
increase in sales, increase in profit due to such increase
in sales will be at a greater degree due to the fact that
with each increased unit of sale , variable cost per unit
remain the same but total fixed cost has decreased in terms
of per unit paving the way for magnifying effect over
profitability due to fixed cost factor.

Similarly reverse will happen in case if in total cost
variable cost % is less as compared to fixed cost.

Question { 4558 }

Short Answer on -----Working capital

Answer

Excess of Current assets over Current liabilities &
Represent those current assets which are financed through
long term source of Financing like debt more than one year .

Question { 10583 }

What are two questions that an owner might be able to
answer by looking at accounting information?

Answer

Whether his profitability has increased as compared to
previous year or not .

If yes or no the % of increase/decrease

Question { 9159 }

will preference share holders will have voting right?wat is
difference between eqity holders and preference share
holders

Answer

No, Voting rights except in exceptional circumstances as
mentioned by Divya.

The basic difference between equity & preference shareholder
is that :

1. Preference of Paying Dividend : preference share holder
has preference of receiving dividend in the event any
decision regarding payment of dividend is taken i.e before
pronouncing dividend to equity shareholder co is required to
announce or declare dividend to preference shareholder

2. Preference of Repayment of Capital amount : As per Co's
Act no company can issue irredeemable preference share but
this is not in case of equity shares.

And also in case of winding up of the Co. preference
shareholders are given preference over equity shareholder
while repaying the capital sum invested by them in the form
of preference share capital.

Question { 5349 }

euro dollars are best described as ?

Answer

Foreign Currency

Question { 9941 }

Why we Deduct TDS ?

Answer

The basic purpose behind deduction of tax at source is that
there are various payments which are in the nature of
incomes of the person receiving the amount but because when
tds was not in operation these receipt of incomes was
somehow concealed by receiver of income just to evade the
payment of income tax but deduction of tax at source makes
it possible for the department to control all the payments
which are in the nature of income of the receiver & hence
making them liable to show the receipt while calculating
their income tax liability. And accordingly their tax is
calculated.

Question { Ernst Young, 6901 }

Where do you see yourself in 5 years time?

Answer

Answer the way where u actually see yourself five years
down the line & specify & explain your objectives & goals
which you would like to achieve in 5yrs & measures to
achieve those goals.

Question { Maytas, 5537 }

Upto what extent we can keep cash in hand on year end (31
march)

Answer

Though there in no limit on keeping cash but generally it is
kept taking into consideration its working capital
requirement & there should not be too much of availability
of cash & nor too less.

Question { 8239 }

Can we take credit of service tax in manufactruring
companies & what is the procedure

Answer

yes, we can take credit of service tax provided the
manufacturing concern is registered under excise act &
these services are being utilised directly or indirectly in
manufaturing of exciseable goods.

If final goods are not exciseable in that circumstances we
cannot claim credit of service tax in respect of those
services which have been utilised in the manufacturing of
goods not subject to excise duty.

Question { 6581 }

does goodwill depreciates ?

Answer

As per AS-14 Goodwill that is purchased should be written
off & such written off is called Amortization.

Question { IBM, 11963 }

what is tax invoice and retail invoice

Answer

Tax invoice is one which is issued by registered dealer of
vat to the purchaser in respect of sale of those item on
whish vat is charged & hence if purchaser is also a
registered dealer of vat(if he has TIN No.), he can claim
the credit of vat passed on to him by registered saller
through issue of Tax invoice.For taking input of vat it is
mandatory as per vat act that seller shall issue tax
invoice.Tax invoice contain a TIN No i.e Tax Identification
No. issued by the authority to the dealer.

Retail invoice is one against which input of vat credit
can't be taken & is issued by seller to those dealers who
do not have tin no or to whom who cannot take credit of tax
for any other reason.