Expected viva questions for accountancy pls?

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Why interest on capital is paid.what is trust deed.what are factors affecting Goodwill.5 components of partnership deed.what is liability act .what are debentures.Types of debentures.Maximum no. of partner in partnership.Rights of partners.WHAT IS RESERVE CAPITAL AND CAPITAL RESERVE.types of shares.difference between equity and preference shares.There are many more .but these are important .

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I think the various formulae from accounting ratios    andcash flow se various cases to define like operating or investing or financing !

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Expected Viva Questions for Accountancy:

1. What is the basic principle of accounting?

The basic principle of accounting is the duality principle, which states that every transaction has two aspects - debit and credit. This principle ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance.

2. Explain the difference between financial accounting and management accounting.

Financial accounting focuses on the preparation of financial statements for external stakeholders, such as investors and creditors, to assess the financial position and performance of a company. Management accounting, on the other hand, provides information to internal stakeholders, such as managers, to assist in decision-making and planning.

3. What is the purpose of preparing a trial balance?

The trial balance is prepared to ensure the accuracy of the recorded transactions. It lists all the debit and credit balances of ledger accounts to check if they are in balance. If the total debit and credit balances are equal, it indicates that the accounting entries have been recorded correctly.

4. Define depreciation and explain different methods of calculating it.

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. There are several methods to calculate depreciation, including:

- Straight-line method: Allocates an equal amount of depreciation expense over each period of the asset's useful life.
- Reducing balance method: Applies a constant percentage to the asset's carrying value to calculate depreciation.
- Units of production method: Allocates depreciation based on the asset's usage or production output.

5. What is the purpose of a cash flow statement?

The cash flow statement provides information about the cash inflows and outflows of a company during a specific period. It helps to assess the company's ability to generate cash, its liquidity position, and its operating, investing, and financing activities.

6. Explain the concept of goodwill.

Goodwill represents the value of a company's reputation, customer base, and other intangible assets. It arises when a company is purchased at a price higher than the fair value of its net assets. Goodwill is recorded as an intangible asset on the balance sheet and is subject to impairment testing annually.

7. What is the difference between a current asset and a fixed asset?

Current assets are those that are expected to be converted into cash or used up within one year, such as cash, accounts receivable, and inventory. Fixed assets, on the other hand, are long-term assets that are not intended for sale, such as property, plant, and equipment.

8. Explain the concept of accrual accounting.

Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when the cash is received or paid. This ensures that financial statements reflect the economic reality of transactions and provides a more accurate picture of a company's financial performance and position.

9. What is the purpose of the statement of retained earnings?

The statement of retained earnings shows the changes in a company's retained earnings during a specific period. It includes net income, dividends, and other adjustments. This statement helps stakeholders understand how the company has utilized its profits and what portion has been retained for future growth or distribution to shareholders.

10. Explain the concept of double-entry bookkeeping

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