Fixed Assets Interview Questions And Answers

fixed asset are assest which gives the business future benfife

Fixed assets are those which are tangiable in nature and is not meant for sale in the near future and from which future benefits are derived.

Fixed Assets are those which are tangible and used for running the day to day business which are owned. As they are utilised for business, we save a part of the profit earned in the business to replace these Assets when they worn out.

Fictitious Assets :These are the assets which can not be seen, but exist in the business.

ex: Goodwill, patents, etc

Cash Book: It is one of the Subsidiary Book which is generally used by any business organisation to record all the cash transactions which helps to know the cash position as and when desired. In it all the entries will be recorded. Generally the cash book can be balanced once in a month.

Day Cash book: It is the book maintained by accountant to record all the cash transactions with takes place during the day (it can be receipt or payment). At later stage these will be posted into cash book.

General Ledger : While preparing Trial balance to check the arithmetical accuracy, some times the debit and credit balances may not tally, to make the process easy the accountant will open an account named General Ledger to post the entries which r causing balancing problem.

straight line method is calculated based on the original cost and year by year the dep will remain the same, but in the nbv the dep we will calculate based on the original cost.

Debentureholder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

1. Double declining method

2. Units of production method

3. Straight-line method

4. Sum of year digit method


Depreciation Fund Method Insurance Method Annuty Method

if u forgot depreciation we have to follow the preliminary principal of the depreciation. That is

value of asset/life time of asset*100.

Different Methods Of Dpn .

Straight Line Method

Diminishing Value Method

Annuity Method

Depletion Method

Written Down value Method

Basically , almost all times, i must be in full of concentration,

secondly, before cash paying and cash receiving we must count and give , at in any situation.

Finally, quick listener, and speed and accuracy maintainence is very important.

An asset or account of borrower,which has been classified by a bank or financial instution as sub-standard,doubtful or loss assets as per the guidelines issued by RBI.

An Asset/Advance is considered as non-performing in casse if interest or isntalment of principal or both remain unpaid for more than two quarters in a financial year.

A non performing asset is one which does not earn any income. For example you have built a house consisting of 3 floors and the whole building is occupied by your family member and does not earn any rent, then this is called as a non performing asset.

A non performing asset is a type of asset which does not earn any income and these asset unable to cover up the investment put into it to hold.

if dues in the form of intrest and principle are not paid by borrower for the period of 90 days then the assets is called as N.P.A

Accumulated depreciation is contra account in Assets section of Balance sheet. That means, assets normally have debit balance but Accumulated depreciation has credit balance. This is a unique type of account and it serves the purpose of showing the viewers the original amount of assets and the resulting depreciation on those assets. Acc dep is also an ingredient in depreciation journal entry. Where Depreciation expese is debited and acc dep is credited.

You can repet the Deprication run procedure by selecting the Repeat run option ---- BY GCI

(Fictitious asset) An asset recorded in the balance sheet that really does not deserve to be classed as an attest . If this is intentional it may be considered fraud.

Bookkeeping, in business, is the recording of financial transactions, and is part of the process of accounting. Transactions include purchases, sales, receipts and payments by an individual or organization. The accountant creates reports from the recorded financial transactions recorded by the bookkeeper and files forms with government agencies. There are some common methods of bookkeeping such as the single-entry bookkeeping system and the double-entry bookkeeping system. But while these systems may be seen as "real" bookkeeping, any process that involves the recording of financial transactions is a bookkeeping process.

Secured loans are those which are borrowed from banks and other financial services, which are genrally huge amounts.

Unsecured loans are small amounts borrowed from unorganised instituion. Exapmle: Moneyborrowed from any person or a relative, where you can get the money without any security.

Current assets/Current Liabilities =1.5
(Current assets minus inventory)/Current Liabilities =1

Thus
Current Liabilities = 2 m
Inventory = 1 m

Fictitious assets means any expendicture, the benefits which will be spread over a period of time not only to the current period. Any expendicture we made for huge advertisements resulted for a period of time. hence its is classifying as fictitious asset.

I think your question is regarding depreciation calculation.

As there is no revenue you can retire the same asset.

general reserve: it is an appropriation of profit

role: general reserve is created in-order to meet the future known and un-known liabilities....

Book depriciation is that which we follow the method or book the depriciation. And derived depriciation is that which is already held the method or derived the rate of method of depriciation.

Yes, as it will be added to the cost of the project

Straight Line - divide the NBV by the number of periods of it's useful life. 4-4-5 - similar to straight line but calculated by number of weeks in a period.

Depreciation is a Gradual Diminishing or Decrease in the value of fixed assets due wear & tear, Obsolence.

Fixed asset means it gives long term benefits to the organisation by year end we should find the accurate value of the asset for this purpose we must calculate the depreciation.