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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (428)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1913)
 Accounting General interview questions  Accounting General Interview Questions (2841)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4372)
Question
What is Accrual (Mercantile Vs Cash System of Accounting)
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
A cash system of accounting is a system of accounting in
which all transactions are recorded only when actual cash
is received or paid. On the other hand in Mercantile system
of accounting the transactions are recorded on due basis
ie. when a transaction arises.
Eg. when sale is made on credit, in cash system of
accounting no transactions will be recorded however under
mercantile system of accounting the transactions will be
recorded.
 
Is This Answer Correct ?    41 Yes 3 No
Samir Sharma
 
Answer
# 2
Accral Basis AS per AS -1 " Disclosure of accounting
polocies"

Accrual concept refers recognize the revenue and
expenditure transacions as and when the occure irrespective
of their acutal receipt or payment.

As per sec 209(8) only when the company is followed the
accrual system of accounting and double entry system then
only it is assumed that proper books of accounts are
maintained by such organisation.
 
Is This Answer Correct ?    18 Yes 9 No
Chalapathi Rao Govada
 
 
 
Answer
# 3
accural concept of outsanding where as cash system concept
only recived and paid
 
Is This Answer Correct ?    10 Yes 2 No
Kiran
 
Answer
# 4
in cash system of accounting expense are considered expense
only when they are received same apply to income also. this
considered to be defective as this doesn't represent true
picture pf profitabilty.
in mercantile expenses are considered as expense durind
the period to which they pertain.when the expense are
received is not significant smae apply to income also.
 
Is This Answer Correct ?    11 Yes 8 No
Nalini Saharia
 
Answer
# 5
Accrual: Accounts on a balance sheet that represent
liabilities and non-cash-based assets used in accrual-based
accounting. These accounts include, among many others,
accounts payable, accounts receivable, goodwill, future tax
liability and future interest expense.
 
Is This Answer Correct ?    14 Yes 14 No
Satish
 
Answer
# 6
in cash system accounting is not recorded but mercantile
or accrual accounting is recorded.
 
Is This Answer Correct ?    1 Yes 1 No
Sharad Srivastava
 
Answer
# 7
accrual accounting system is mostly used by large
businesses or organizations. under this method all the
transaction are recorded whether it is cash transaction or
credit transaction. for example under the accrual method
revenue is recognized when customer are invoiced,
regardless of when payment is recieved. similarly, an
expense is recognized when the bill is recieved, not when
payment is made.
 
Is This Answer Correct ?    3 Yes 5 No
Zain-ul-abideen
 
Answer
# 8
accrual system of accounting means where the cash
transactions are take place other than credit transactions.
 
Is This Answer Correct ?    3 Yes 8 No
Charan
 

 
 
 
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