:: Home Page            
 Advertise your Business Here     
Browse  |   Placement Papers  |   Company  |   Code Snippets  |   Certifications  |   Visa Questions
Post Question  |   Post Answer  |   My Panel  |   Search  |   Articles  |   Topics  |   ERRORS new
   Refer this Site  Refer This Site to Your Friends  Site Map  Bookmark this Site  Set it as your HomePage  Contact Us     Login  |  Sign Up                      
Categories >> Accounting >> Accounting AllOther


 Audit interview questions  Audit Interview Questions (427)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1898)
 Accounting General interview questions  Accounting General Interview Questions (2809)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4359)
What is the difference between cash and mercantile system 
of accounting? Which according to you is a better system & 
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
# 1
Cash Basis Accounting
Under cash basis accounting revenues are recognized and
earned only when cash is received irrespective of when and
how the services were performed or goods delivered.

To put it in different terms, the cash basis of accounting
asks you to take into consideration all those incomes/gains
that have been received in cash or other assets and
expenses/losses that have been paid out in cash or other
assets during the accounting period in consideration.

Accrual or Mercantile Basis Accounting
Under accrual or mercantile basis accounting, revenues are
recognized and earned when they are realized or realizable
irrespective of when the cash is received.

To put it in different terms, the accrual basis of
accounting asks you to take into consideration all those
incomes/gains and expenses/losses pertaining to the
accounting period for which you are trying to ascertain the
profits and losses irrespective of whether the incomes are
received in cash or not and the expenses are paid out in
cash or not.
Is This Answer Correct ?    25 Yes 4 No
Saurabh Goel
# 2
mercantile system of accounting is better while compared to
the cash system
Is This Answer Correct ?    16 Yes 3 No
Noor Basha

Other Accounting AllOther Interview Questions
  Question Asked @ Answers
How to Maintain Medical Stores accounts in Tally?Please send me full details???????????????? thanks   1
Paid a cheque for Rs 26500/- to Vishnu traders on behalf of Haritha trders for material supply   2
What percentage of discounts lost did you have in Accounts Payable? Did the percentage increase or decrease under your supervision? United-Healthcare 1
Expand---------CRD   1
How to enter an invoice already paid? India-Glycols 2
GAP Stand for Genpact 11
how important of purchase and sales invoices? CTS 2
what is stock? what is bond? who is portfolio manager? corporare action?   2
under which category petty cash expences will fall in tally ERP.9?   4
What is the TDS ratio & TDS chart plz provide me TDS amt & percentage & Ration my id - Sasken 3
what are the types of leasing and their accounting entries?   2
For more Accounting AllOther Interview Questions Click Here 

Copyright Policy  |  Terms of Service  |  Articles  |  Site Map  |  RSS Site Map  |  Contact Us
Copyright 2013  All Rights Reserved.   ::