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
   Testimonials Refer this Site  Refer This Site to Your Friends  Site Map  Contact Us      
   
 
Categories >> Business Management >> Finance
 


 

 
Question difference Between Cost Accounting and Financial Accounting?
 Question Asked In Companies :: Saga, Amity, Unilever, College School Exams Tests, AJL, IILM,     < I also faced this Question! >
 Question Submitted By :: nandu
  Answer Posted By  
 
Answer
The focus of cost accounting is essentially internal. it
tends to provide information about costs and cost estimates
to the parties within the firm for decision making.
Financial accounting provides consolidated information to
parties external to the business firm regarding its
operations and financial conditions. such parties include
share holders, bankers, creditors, debenture-holders,
government and tax authorities.

Is This Answer Correct ?    174 Yes 27 No


 
  archana
 
View All Answers
 
 
Please Help Members By Posting Answers For Below Questions
 
 Question Views   Select
 
what is the difference b/w acquisation by subsidy & acquisation by a company? 1931
How is Economy,Industry and Company analysis is carried out by the Fundamental Investor? 767
I am attending the interview in ICICI BANK i need the interview tips and questions 430
why there is a price band for IPO(initial public offer)? And at what price the investor can issue those ipos? 588
1. EXPLAIN ‘ DISASTER RECOVERY PLAN’ AND ‘ BUSINESS CONTINUTY PLAN’ . 593
what is mean by Ratio analysis in the orgnations? 679
Quote the best Indian Examples for Consolidation. 2229
what is tertiary sales 811
can anybody help me to tell me about the questions that could be asked in axis bank interview? 360
What is the origin of GDR? 514
im mba (finance+retail) iv sem student.. im realy confused that how to find right job which helps to make my bright carrere.. i don't have any type of guidance that is a big problem with me.....i can't go with marketing area im preparing for banking sector also with my self study. should i join any coaching? pls give me suggest me a right way... 873
why to choose merger and acquisition as a field for career? 578
what is cbt in bank explain it??? 856
Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers? 606
Does the president have the power to allocate funds,without Legislative approval, to be used directly by individual companies? 568
E-Mail New Answers        Answer Selected Questions