• What is debit and credit from the bank point of view? 

                    In Banks point of view debit means u have deposited money in the bank . and credit means u have withdraw money from the banks. In other word we can say that if debit bank balances shows in bank statement this means it is the unfavorable condition for the company and credit balance means it is the favorable condition for the company.

• What is the difference between Consigner and Consignee?

                    Consigner is the person deliver the goods to consignee.

                    Consignee is the person who will receives goods.

•  What is the full form of SOX in accounts? 

Sarbanes Oxley act.Otherwise known as Public companies accounting reforms and investor protection act. It was enacted in 2002 in USA after lot of scams arosen on accounting framework whereby investors lose faith and confidence on accounting disclosures.

• What is the types of assets? 

1)Fixed Asset :- Expenses which is paid for generating income for more than one financial year e.i. Plant & Machinery, Building, Furniture
a)Tangible Asset :- asset which can be physically measured and touch e.i. Plant&Machinery,
Building
b)Intangible Asset :- asset which can't physically measured and touch e.i. Trade mark Goodwill
2)Current Asset :- Asset which can be easily converted in cash e.i. cash in hand, cash at bank, stock
3)Fictitious assets:
its not the actual assets , its the expenditure occurred at the tine of commencement of firm ( capital expenditure )like preliminary expenses, discount on issue on debenture/shares, underwriting commission etc

• What is meant by liabilities ?  

Liabilities are obligations or debt an enterprise must pay in money or services at some time in a future.

liability in the sense the company is liable to pay then it could be regarded as a liability
this could be explained as -
assets -capital=liability

• What is the meaning of invoice?

Invoice is a statement which contains the under mentioned details compulsorily.

1. Invoice Numner

2. Invoice date

3. Name and address of the person making the invoice ( Seller of goods and service)

4. Name and address of the person to whom invoice is made. ( Buyer of goods and service)

5. Description of goods / services involved

6. Applicable rates and taxes with percentages

7. Rate of the goods / services

8. Quantity of the goods and services

9. Quality or any other specifications

10. Price / Value of the goods and services

11. Invoice must be signed by the person making it

12. Terms and conditions of making the payment.

• What steps would you take before approving an invoice for payment?

                  

Following steps should be taken..

>Validate the invoice once it is matched for checking any holds..

>If work flow is implemented , Initiate approval for the invoice. Once the invoice is approved/Approval not required(status in case WF is not implemented) you can go for payments.

>Create accounting after approval of invoice..

Finally for payments u need to format, build..

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Before making payment

the following steps should be taken
1. invoice amt, date, qty,
2. invoice duplication or not
3. rectification of any Errors in invoice 

• What is the difference between SAP MEMORY and ABAP MEMORY?

SAP Memory: Global, user-related memory that extends beyond transaction limits.Access to the SAP memory is via SPA/GPA parameters.

ABAP Memory:Memory area within each main session, which can be accessed by programs using the EXPORT and IMPORT statements and which remains available using a series of program calls (call sequence).

• What is capital market?

capital market is a market of securities. where a company and government raise long term funds. it is a market where money invested more them one year. in this we include the stock market and bond market.

•  Explain about Accounts Payable.

Accounts payable is nothing but " money which a company need to pay to vendors for goods and services purchased on credit.

1.Accounts payable is a current liability of a company.

2. This item appears on liability side of a balance sheet

•   What do you understand by Intercompany Settlement?

Intercompany settlement is a type of adjustment of funds made between two parental companies.
lets take an example:
If Co.A Sell goods worth $1000.00 to its own Subsidry Co.B and in the meanwhile Co.B sell goods worth $8000.00 to Co.A(it has to be in same FY), then at the end of the Financial Year Co.B has to pay only $2000.00 to Co.A. Co.A will pass an adjustment entry in their books for the difference amount.
(In case of other vendors this procedure cannot be followed)

• What is FBT(Fringe Benefit Tax)??

The tax payable on a non-salary benefit provided to an employee or an associate of the employee. The employer is liable to pay any FBT and may choose to recover the FBT amount from the employee.

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Tax payable by the employer on the amenities provided to employees and maintenance of vehicles,telephone bills and traveling and conveyance charges on 20% of the expenditure @ 30% tax. It will not be allowed as deduction from gross total income of the business organization. Any how it is abolished from the financial year 2009-10 onwards

• Tell us about an invoice discrepancy that you discovered and how you resolved the discrepancy.

Discrepancies in invoices could be many. Like there might a incorrect amount entered, incorrect date or account code combination entered etc. If the amount entered is not matching with the purchase order then the system will place the invoice on hold which will have to be released before going further. If there is no purchase order matching and if you have entered wrong amount and if it is approved then you can reverse the distribution line and create a fresh line for the correct amount. 

• Can you give a sample Process Flow for Procure to Pay Cycle?

step1 check on hand availability in inventory
step2 create requisition
step3 create rfq (req for quotation)
step4 create quotations
step5 analyze the quotes
step6 create purchase order
step7 po sent to supplier
step8 goods received
step9 invoice booked
step10 payment to supplier

• What is meant by Open Item Managed Account?

Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

• What is a IFA?

Institute of finance & accounts