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1. WHAT IS STATUTORY AUDIT?
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answer :Statutory audit is done by chartered Accountants, to verify the financial statement's fairness and it
is done annually. It ensures that, to the best knowledge of the auditors, financial statements are free from
any misrepresentations and frauds.
2. WHAT IS INTERNAL AUDIT
ANSWER An inspection and verification of the financial records of a company or firm
by a member of its own staff to determine the accuracy and acceptability of its
accounting practices.
3. WHAT IS EXTERNAL AUDIT ?
ANSWER:a periodic examination of the books of account and records of an entity
conducted by an independent third party (an auditor) to ensure that they have been
properly maintained, are accurate and comply with established concepts, principles,
and accounting standards, and give a true and fair view of the financial state of the
entity.
4. Explain The Difference Between Internal Audit And External Audit?
ANSWER : The internal audit is conducted to help the management. The weakness of
the management is disclosed. The external audit is conducted to help the shareholder.
The rights of owners are protected. The appointment of internal audit is made by the
management. The appointment in external audit is made by the shareholders. Internal
audit is the part of internal control.
External audit is the not the part of internal control.The internal audit can suggest
improvement in internal check system. The external audit can not suggest
improvement in internal check system. The internal audit can perform his duties under
the terms of appointment. The management can limit the scope of work at any time.
The external auditor can perform his work to terms of appointment and other
prescribed law. The scope is very wide. Internal audit is an employee of the company.
He is not an independent person. External auditor is not an employee of the company.
Q: What do you mean by vouching?
Answer : Vouching is the process of checking the authentication of the voucher
maintain by the management with the respective supporting document
Q : Definition of audit ?
Answer : An examination and verification of a company's financial and accounting
records and supporting documents by a professional, such as a Certified Public
Accountant.
Q : What are Objectives Of Internal Audit?
Answer : The purpose of internal audit is to keep proper control over business
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Answer : Money spent to acquire or upgrade physical assets such as buildings and
machinery. also called capital spending or capital expense.
Q : what is revenue expenditure?
Answer : All expenses incurred in running a business such as salaries, wages, rent,
lighting, stationary etc. are classed as revenue expenditure. Beside expense incurred in
putting the fixed assets in proper order by repairs and renewals are also revenue
expenditures.
Q : What is Asset ?
Answer : Assets are a companys resourcesthings the company owns. Examples of
assets include cash, accounts receivable, inventory, prepaid insurance, investments,
land, buildings, equipment, and goodwill. From the accounting equation, we see that
the amount of assets must equal the combined amount of liabilities plus owners (or
stockholders) equity.
Q : what is Liabilities ?
Answer : Liabilities are a companys obligationsamounts the company owes.
Examples of liabilities include notes or loans payable, accounts payable, salaries and
wages payable, interest payable, and income taxes payable
Q : what is Owners or stockholders equity ?
Answer : Owners or stockholders equity also reports the amounts invested into the
company by the owners plus the cumulative net income of the company that has not
been withdrawn or distributed to the owners.
Q : definition of revenue?
Answer : this is the total amount of money received by the company for goods sold or
services provided during a certain time period.
Q : definition of expense ?
Answer : Payment of cash or cash-equivalent for goods or services, or a charge against
available funds in settlement of an obligation as evidenced by an invoice, receipt,
voucher, or other such document.
Q :What is depreciation?
Answer :A non cash expense that reduces the value of an asset as a result of wear and
tear, age, or obsolescence. Most assets lose their value over time (in other words, they
depreciate),
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Answer : A financial statement that presents the revenues and expenses and resulting
net income or net loss of a company for a specific period of time .
Q : what is balance sheet ?
Answer : A financial statement that summarizes a company's assets, liabilities and
shareholders' equity at a specific point in time.
Q : what is cash cow ?
Answer : any business venture , operation, or product that is a dependable source of
income or profit .
Q : definition of tax ?
Answer : A fee charged ("levied") by a government on a product, income, or activity of
an organization or person .
Q : What is direct tax ?
Answer : In the general sense, a direct tax is one paid directly to the government by the
persons or organization (juristic or natural) on whom it is imposed (often accompanied
by a tax return filed by the taxpayer). Examples include some income taxes, some
corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax.
Q : What is indirect tax ?
Answer : A tax, such as a sales tax or value-added tax, that is levied on goods or
services rather than individuals and is ultimately paid by consumers in the form of
higher prices.
Q : what is Tax holiday ?
Answer : A government incentive program that offers a tax reduction or elimination to
businesses. Tax holidays are often used to reduce sales taxes by local governments, but
they are also commonly used by governments in developing countries to help stimulate
foreign investment.
Q : what is VAT?
Answer : Value Added Tax. A consumption tax which is levied at each stage of
production based on the value added to the product at that stage.
Q : What is income tax ?
Answer : a tax levied on incomes, especially an annual government tax on personal
incomes.
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Answer : The internal rate of return (IRR) is a rate of return used in capital budgeting
to measure and compare the profitability of investments. It is also called the discounted
cash flow rate of return (DCFROR) or simply the rate of return (ROR)
Q : what is Net present value?
Answer : Net present value is an economic standard method for evaluating competing
long-term projects in capital budgeting
Q : What is fair market value?
Answer : The price that an interested but not desperate buyer would be willing to pay
and an interested but not desperate seller would be willing to accept on the open
market assuming a reasonable period of time for an agreement to arise.
Q : what is hardware ?
Answer : Hardware refers to a physical piece of a computer. This could be a hard drive,
monitor, memory chip, or CPU. The key idea is that the item is something you can
touch. This compares to software which is not tangible in any way. You can't pick it up
or weigh it. Yet, without software, hardware is useless.
Typical examples of hardware include the computer you're using to view this page, the
hard drive that has this page stored on it, and the mouse you used to click on a link to
bring you to this page.
Q: what is software ?
Answer : Software is a general term for the various kinds of programs used to operate
computers and related devices.software is not visible .
Q : What is internet ?
Answer : a vast computer network linking smaller computer networks worldwide
(usually preceded by the ). The Internet includes commercial, educational,
governmental, and other networks, all of which use the same set of communications
protocols.
Q: What is E-commerce?
Answer : E-commerce (electronic commerce or EC) is the buying and selling of goods
and services on the Internet, especially the World Wide Web. In practice, this term and
a newer term, e-business, are often used interchangably. For online retail selling, the
term e-tailing is sometimes used.
Q : what is E-mail?
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CA = chartered Accountant
ACA = Associate of Chartered Accountants
FCA = Fellow of Chartered Accountants
ICAB - Institute of Chartered Accountants of Bangladesh. these kinds of degree provid
by Institute of Chartered Accountants of Bangladesh(ICAB)
CPA = Certified Public Accountant
AICPA = American Institute of Certified public Accountant
PROFESSIONAL DEGREES & ORGANIZATION
CMA = Certified Management Accountants
ACMA = Associate of Certified Management Accountants
FCMA =fellow of Certified Management Accountants
PROFESSIONAL DEGREES & ORGANIZATION
CMA = Cost and Management Accountants
ACMA = Associate of Cost and Management Accountants
FCMA = Fellow of Cost and Management Accountants
ICMAB = Institute of Cost and Management Accountants of Bangladesh.those kinds of
degree provided by Institute of Cost and Management Accountants of Bangladesh
PROFESSIONAL DEGREES & ORGANIZATION
CMA = Chartered Management Accountants
ACMA = Associate of Chartered Management Accountants
FCMA = Fellow of Chartered Management Accountants
CIMA = Chartered institute Management Accountants. those degree provided by
Chartered institute Management Accountants
PROFESSIONAL DEGREES & ORGANIZATION
CAT = Certified Accounting Technician
ACCA = Associate of chartered Certified Accountants
FCCA = fellow of chartered Certified Accountants
ACCA = Association of chartered Certified Accountants. those degree provided by
Association of chartered Certified Accountants
what is Financial Accounting?
Answer : The area of accounting concerned with reporting financial information to
interested external parties.
Working capital -- current assets minus current liabilities. In most businesses the major
components of working capital are cash, accounts receivable, and inventory minus
accounts payable. As a business grows it will have larger accounts receivable and more
inventory. Thus the need for working capital will increase.
Write-off -- the total reduction in the value of an asset, recognizing that it no longer has
any value. Write-downs and write-offs are non-cash expenses that affect profits
Q : what is entry tax . type of entry tax ?
Entry tax is levied on that product which tranfer or enter
a product from-one state to another state or one District
to another district,if you sale as such the prodcut not
restructuring.
There is two types of entry tax are available
1) Entry on Motor Vehicles-- Motor
Vehicles purchsed in other
state enteres to a different State, then entry tax is
leviable. tHIS IS APPLICABLE ONLY FOR VEHICLES liable to be
registered under Motor Vehicles Act. The tax paid in other
State can be compensated or set back of taken, if the rate
of tax is highter in the State where the vehicle is entring
2) Entry Tax on goods--this has been recently strucked by
the apex court in the case of Jindal Strips Ltd for the
reason that entry levied shgould be compensatable otherwise
it can be levied
Imposition of Value Added Tax:
Imposition of VAT
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Q : definition of appreciation ?
1.Answer : Increase in the value of an asset through a rise in market price, appraised
value, or income earned, as compared to an earlier period. The opposite is
Depreciation.
2.Answer : Increase in the value of one currency vs another, without any change in
official value occurring. It results from growth in market demand under floating
exchange rates rather than official action such as a currency revaluation.
Q : Difference between depreciation appreciation?
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