ALLInterview.com :: 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                      
Google
   
 
Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (422)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (157)
 Taxation interview questions  Taxation Interview Questions (1892)
 Accounting General interview questions  Accounting General Interview Questions (2777)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4351)
Question
What is the difference between cash and mercantile system 
of accounting? Which according to you is a better system & 
why?
 Question Submitted By :: Pasha20
I also faced this Question!!     Rank Answer Posted By  
 
  Re: What is the difference between cash and mercantile system of accounting? Which according to you is a better system & why?
Answer
# 1
mercantile system of accounting is better while compared to
the cash system
 
Is This Answer Correct ?    15 Yes 3 No
Noor Basha
 
  Re: What is the difference between cash and mercantile system of accounting? Which according to you is a better system & why?
Answer
# 2
#
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 ?    24 Yes 4 No
Saurabh Goel
 
 
 

 
 
 
Other Accounting AllOther Interview Questions
 
  Question Asked @ Answers
 
What are the errors and the types of errors? Genpact 6
Entry for the settlement of loans? Wipro 8
Ratio Analyis, What is PE ratio, how do you calculate it, EPS, Bills recievable and other ratios Thomson-Reuters 4
Does NAV go up or down when dividend are declared on Mutual funds? Mellon 1
Where we show Service Tax Due ( Credit Balance ) in Balance Sheet?   2
What is the entry posted for GRN (Goods received Note)? If the stock received from the party what entry have to post in books? And in which a/c it has been hit?   2
why opening stock posted in the credit side   2
what is ADRs? Capital-IQ 9
What is the meaning of Blue chip? Kotak 1
How many types of routing? Cisco 4
What's the method to prepare the MIS Report? or What's the Step of prepare of MIS Report?   1
why balance sheet should tally?   2
 
For more Accounting AllOther Interview Questions Click Here 
 
 
 
 
 


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

ALLInterview.com   ::  KalAajKal.com