Author name: The Corporate Institute

If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction?

Question Bank, Technical, All, Finance, Statutory Audit, Accounting / By

Note: This is assuming all transactions are in the same period. If Fire is in Year 1 and Recovery is in Year 2, impairment will be done in Year 1 For the sale of scrap and receivable from Insurance company the entry is Bank a/c Dr 10,000 Insurance Receivable/ Bank a/c Dr 30,000 Loss on…...

To get access, please buy CA Interview Question Bank

Keys to effective controllership

Technical, All, Finance, Accounting, Question Bank / By

It’s not enough to simply know the financial controller role. There are clear ways to be more efficient and effective in this position, and to move from simple data processing to trusted business partners. Here are some keys to doing this. a. Automate, automate, automate! As every accountant is well aware, recording financial transactions still…...

To get access, please buy CA Interview Question Bank

Difference between research and development?

All, Finance, Statutory Audit, Accounting, Question Bank, Technical / By

Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production…...

To get access, please buy CA Interview Question Bank

What does a Financial Controller do?

Technical, All, Finance, Accounting, Question Bank / By

The FC is a senior leader in the finance team. For this reason, it’s usually expected that job applications show significant experience in accounting and tax issues, plus the ability to guide others and take ownership of the company’s books.This requires more than simply a gift for numbers. Controllers need to be organized self-managers, with…...

To get access, please buy CA Interview Question Bank

What is a Controller in Finance? OR What is Finance Controller?

Question Bank, Technical, All, Finance, Accounting / By

A financial controller essentially is a company’s lead accountant. They oversee accounting activities and ensure that ledgers accurately reflect money coming in and out of the company. Strategic controllers also impact decision making, forecasting, and budgeting at the company level, based on accounting data. “A controller is responsible for the accounting and record keeping of…...

To get access, please buy CA Interview Question Bank

What is the substantial period under Ins As for capitalizing borrowing cost w.r.t qualifying assets?

Technical, All, Finance, Statutory Audit, Accounting, Question Bank / By

Generally, a period of 12 months is considered as a substantial period unless a shorter or longer period can be justified based on facts and circumstances of the case. Borrowing costs are capitalized in the books of accounts with the qualifying assets when it is certain that it will have future economic benefits. Favorite… To...

To get access, please buy CA Interview Question Bank

IND AS 16 : What is the concept of Component accounting as per Ind AS 16 ? Why Component Accounting is used ?

Technical, All, Finance, Statutory Audit, Accounting, Question Bank / By

Each major part of an item of PPE with cost being significant in relation to total cost of the item, should be depreciated separately, even though it may not have different useful life, but may be grouped for determining depreciation charge. Component accounting requires a company to identify and depreciate significant components with different useful…...

To get access, please buy CA Interview Question Bank

Ind AS 16 : What is the Deemed cost exemption as per Ind AS 16?

Question Bank, Technical, All, Finance, Statutory Audit, Accounting / By

As per Ind AS 101, the deemed cost exemption is applicable to PPE as defined under Ind AS 16 and recognised as Fixed Assets in the financial statements at the transitional date irrespective of whether these were disclosed separately. Favorite… To get access, please buy CA Interview Question Bank...

To get access, please buy CA Interview Question Bank

Ind AS 40 : Definition of Investment property?

All, Finance, Statutory Audit, Accounting, Question Bank, Technical / By

IAS 40 permits treatment of property interest held in an operating lease as investment property, if the definition of investment property is otherwise met and fair value model is applied. In such cases, the operating lease would be accounted as if it were a finance lease. Favorite… To get access, please buy CA Interview Question...

To get access, please buy CA Interview Question Bank

IND AS 19 (Employee Benefit) ?

Technical, All, Finance, Statutory Audit, Accounting, Question Bank / By

The Indian Accounting Standard (Ind AS) 19 aims to prescribe accounting and disclosure for employee benefits. It requires recognition of the liability by an entity when an employee provides services for employee benefits to be paid in the future, and recognition of expenses when the entity utilises the economic benefit arising from service given by…...

To get access, please buy CA Interview Question Bank

Explain CSR in depth as per companies act.

Question Bank, Technical, All, Finance / By

Corporate Social Responsibility (CSR) implies a concept, whereby companies decide voluntarily to contribute to a better society and a cleaner environment – a concept, whereby the companies integrate social and other useful concerns in their business operations for the betterment of their stakeholders and society in general in a voluntary way. Basically, “Corporate Social Responsibility”…...

To get access, please buy CA Interview Question Bank

Effect of change in valuation of inventory from FIFO to weighted average in an inflationary environment?

Technical, All, Finance, Accounting, Question Bank / By

Let’s assume three months, the goods were purchased in January of rupees 5 and February of rupees 10, in March it was all sold. Suppose we are following FIFO and there is an inflationary environment so we first sold the stock of rupees 5, and then of rupees 10, and so we can conclude that…...

To get access, please buy CA Interview Question Bank

What all items are added in inventory cost?

All, Finance, Accounting, Question Bank, Technical / By

Cost of Inventory includes:The costs of purchase of inventories include: 1. Cost of purchase 2. Cost of conversion 3. Other cost to bring the inventory to the present location and condition Cost of Purchase: a) the purchase price, b) import duties and other taxes (other than those subsequently recoverable by the entity from the taxing…...

To get access, please buy CA Interview Question Bank

Difference between EBITDA and cash flow from operation?

Technical, All, Finance, Financial Management, Investment Banking, Question Bank / By

The main difference between EBITDA and cash flow from operation is working capital changes and taxes. In EBITDA, it is before tax and in cash flow from operations, it is after tax. The second difference is that EBITDA is on an accrual basis and cash flow from operations is on cash basis. Favorite… To get...

To get access, please buy CA Interview Question Bank

What is related party as per various laws? – Companies Act, Ind AS, GST, Income Tax

Technical, All, Finance, Statutory Audit, Accounting, Question Bank, Direct Tax, Indirect Tax / By

As per 2(76) of Companies Act: a. a director or his relative; b. a key managerial personnel or his relative; c. a firm, in which a director, manager or his relative is a partner; d. a private company in which a director or manager or his relative is a member or director; e. a public…...

To get access, please buy CA Interview Question Bank

What is segment reporting criteria?

Technical, All, Finance, Statutory Audit, Accounting, Question Bank / By

An operating segment is a component of an entity: (a) that engages in business activities from which it may earn revenues and incur expenses (b) whose operating results are regularly reviewed by the entity’s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance; and…...

To get access, please buy CA Interview Question Bank

What is payback period and discounted payback period?

Financial Management, Investment Banking, Question Bank, Technical, All, Finance / By

The payback period is the length of time required to recover the cost of an investment. The payback period of a given investment or project is an important determinant of whether to undertake the position or project, as longer payback periods are typically not desirable for investment positions.The discounted payback period is a capital budgeting…...

To get access, please buy CA Interview Question Bank

How to evaluate investment in the concept of capital budgeting?

Technical, All, Finance, Financial Management, Investment Banking, Question Bank / By

The most common capital investment evaluation tools are the Payback Period (PP), Return on Investment (ROI), Net Present Value (NPR), and Internal Rate of Return (IRR). Each method can provide insight into investment options, but each also has limitations. If net present value is positive, the project should be accepted. If internal rate of return…...

To get access, please buy CA Interview Question Bank

What is Capital budgeting? Give an example of a capital budgeting decision.

Technical, All, Finance, Financial Management, FP&A, Investment Banking, Question Bank / By

Capital budgeting is the process a business undertakes to evaluate potential major projects or investments. Construction of a new plant or a big investment in an outside venture are examples of projects that would require capital budgeting before they are approved or rejected. As part of capital budgeting, a company might assess a prospective project’s…...

To get access, please buy CA Interview Question Bank

How will you calculate enterprise value? And how is it different from market capitalisation

Financial Management, Investment Banking, Question Bank, Technical, All, Finance / By

Enterprise Value, or EV for short, is a measure of a company’s total value, often used as a more comprehensive alternative to equity market capitalization. The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding. Enterprise value is calculated as the market capitalization plus…...

To get access, please buy CA Interview Question Bank

Tell me some Liquidity and Coverage ratios?

All, Finance, Financial Management, Investment Banking, Credit Analyst, Question Bank, Technical / By

Liquidity – Current ratio; Quick Ratio; Cash Ratios Liquidity Ratios A company with adequate liquidity will have enough cash available to pay its ongoing bills in the short run. Here are some of the most popular liquidity ratios: Current Ratio Current ratio = Current assets / Current liabilities The current ratio measures a company’s ability…...

To get access, please buy CA Interview Question Bank

Difference between solvency and liquidity?

Technical, All, Finance, Financial Management, Investment Banking, Credit Analyst, Question Bank / By

Solvency is defined as the firm’s potential to carry on business activities in the foreseeable future, to expand and grow. It is the measure of the company’s capability to fulfil its long-term financial obligations when they fall due for payment. A solvent company is one that owns more than it owes; in other words, it…...

To get access, please buy CA Interview Question Bank

The Corporate Institute bridges the gap between degree and corporate success.  Our objective is to make our participants ready for their Corporate journeys, hence the name “The Corporate Institute”.

Twitter Facebook-f Dribbble Youtube Pinterest Medium

The Corporate Institute

Top Selling Courses

  • CA Placement Preparation Programme
  • CA Interview Question Bank
  • Exam Planners - CA, CMA, CS

Quick Links

Scroll to Top