10+ Techsoc Technologies Interview Questions and Answers

Yes

• Tax profit and accounting profit are different concepts in finance.

• Tax profit refers to the profit calculated for tax purposes, taking into account tax laws and regulations.

• Accounting profit, on the other hand, is the profit calculated based on generally accepted accounting principles (GAAP).

• Tax profit can be higher or lower than accounting profit depending on various factors such as tax deductions, credits, and allowances.

• For example, a company may have higher accounting ...read more

Accounting profit and tax profit are not the same. The key difference lies in the treatment of certain expenses and income.

• Accounting profit is based on the principles of accounting and includes all revenues and expenses recorded in financial statements.

• Tax profit is used for calculating taxes owed to the government and may have adjustments for tax purposes, such as depreciation and interest expenses.

• Key differences include treatment of depreciation, interest expenses, and ot...read more

Deemed dividend is a distribution of profits by a company that is not actually paid out, while block of assets refers to a group of assets treated as a single unit for tax purposes.

• Deemed dividend is a distribution of profits by a company to its shareholders, even if no actual dividend is declared or paid out.

• Block of assets refers to a group of assets that are treated as a single unit for the purpose of calculating depreciation or capital gains tax.

• Deemed dividends can arise...read more

Tax reconciliation involves comparing financial records with tax returns to ensure accuracy.

• Gather all financial records and tax returns for the period in question

• Identify any discrepancies between the two sets of records

• Adjust the financial records to match the tax returns, or vice versa

• Document any changes made during the reconciliation process

• Ensure all adjustments are properly accounted for in the final reconciliation

Capital expenses are for long-term assets while revenue expenses are for day-to-day operations.

• Capital expenses are for acquiring or improving long-term assets like buildings or equipment.

• Revenue expenses are for day-to-day operations like salaries, rent, and utilities.

• Capital expenses are usually depreciated over time while revenue expenses are fully expensed in the period incurred.

Disallowed expenses in a tax return

• Personal expenses

• Gifts and donations

• Political contributions

• Illegal activities

• Fines and penalties

• Life insurance premiums

• Health club dues

• Hobby expenses

Deferred revenue expenditure refers to expenses that are incurred in one accounting period but are recognized as assets and expensed over a period of time.

• Deferred revenue expenditure is recorded as an asset on the balance sheet and gradually expensed over the period of benefit.

• Examples include expenses incurred for setting up a new business, advertising costs, and research and development expenses.

• It helps in matching expenses with revenues generated in future periods.

• Deferr...read more

Bank reconciliation is the process of comparing a company's records to its bank statement to ensure they match.

• Bank reconciliation helps identify discrepancies between the company's records and the bank statement.

• It involves comparing transactions, such as deposits and withdrawals, in the company's records to those in the bank statement.

• Any differences found during the reconciliation process need to be investigated and resolved.

• Bank reconciliation ensures the accuracy of the ...read more

LTCA stands for Long-Term Capital Asset and STCA stands for Short-Term Capital Asset.

• LTCA refers to assets held for more than 36 months, while STCA refers to assets held for 36 months or less.

• Gains from LTCA are taxed at a lower rate compared to gains from STCA.

• Examples of LTCA include real estate, stocks held for more than 3 years, while examples of STCA include stocks held for less than 3 years.

Accounting concepts are principles and guidelines used in financial accounting to ensure accurate and consistent reporting.

• Accounting concepts include the accrual concept, consistency concept, materiality concept, and going concern concept.

• The accrual concept requires that revenue and expenses be recorded when they are earned or incurred, regardless of when payment is received or made.

• The consistency concept requires that accounting methods and procedures be consistent from o...read more

A/r and A/p difference

• A/r stands for Accounts Receivable, which represents the money owed to a company by its customers for goods or services provided.

• A/p stands for Accounts Payable, which represents the money a company owes to its suppliers or vendors for goods or services received.

• The main difference between A/r and A/p is the direction of the cash flow: A/r represents money coming into the company, while A/p represents money going out of the company.

• A/r is an asset on the...read more