Answer Posted / khushboo bansal

The question can be answered based on the liability of the
company.if the company has limited liability thn the owner
is not liable or responsible and therefore he is solvent.

but,in case the companies liability is unlimited the owner
will b liable to pay back all the liabilities n will end up
being insolvent.

the company can neither be in a profitable position as
their liabilities are more than the assets nor will it be
in a liquidity position as they are running short of cash.

what did you mean by cash credit limit account ?

2764

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Short Answer on ______________House Rent allowance

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Accounting related interview questions on ibm

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I have an S Corporation called Trend Foods Inc. I would like to make a division of that company that services computers and call that Trend Computer Service. I do not want to set up another Corporation for Trend Computer Service. Can I just make a division of Trend Foods and what paperwork do I need to fill out to make that happen? Thanks for the help, Jim

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Difference between cash and merchantile system?

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Clasify capital

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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.

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Who will be called as consignee

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how do you prepare the mis reports and prepare the one example report stating your accounts department proforma

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define fixed assets

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plz tell me the finance questions asked in hsbc latest question asked in hsbc?

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Truck # 3 has a list price of 16000. It is acquired in exchange for a computer system that company A caries in its inventory. The computer system cost 12000 and is normally sold by company A for 15200. Pass the journal for the same.

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what is difference between account and accounting

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Expand ________FOR

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What are the objectives of accounting

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