Bmp Softech Interview Questions, Process, and Tips

Q1. What is reserve for provision
Ans. 
Reserve for provision is an amount set aside by a company to cover potential future expenses or losses.
• Reserve for provision is a part of a company's financial statements.

• It is used to account for potential future expenses or losses that are uncertain but likely to occur.

• The amount of reserve for provision is based on estimates and historical data.

• It helps ensure that a company is prepared for unexpected events that ma...read more
Answered by AI
Add your answer
Q2. Difference between reserve for bad debts
Ans. 
Reserve for bad debts is an estimated amount set aside by a company to cover potential losses from customers who may not pay their debts.
• Reserve for bad debts is a contra asset account on the balance sheet.

• It represents the amount of accounts receivable that the company does not expect to collect.

• It is based on historical data, industry trends, and the company's past experience with bad debts.

• The reserve is adjusted pe...read more
Answered by AI
Add your answer
Q3. Who's made bad debts
Ans. 
Companies often make bad debts when customers fail to pay their outstanding balances.
• Bad debts are typically incurred when customers default on their payments.

• Companies may write off bad debts as uncollectible and adjust their financial statements accordingly.

• Bad debts can impact a company's profitability and cash flow.

• Examples of bad debts include customers declaring bankruptcy or simply refusing to pay their bills.
Answered by AI
Add your answer
Q4. What is Account Payable in finance Accounting
Ans. 
Accounts Payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.
• Accounts Payable represents the short-term debt a company owes to its suppliers or vendors.

• It is listed as a liability on the company's balance sheet.

• Accounts Payable is typically due within a short period, often 30 to 90 days.

• Examples include invoices from suppliers for inventory purchases, util...read more
Answered by AI
Add your answer
Q5. What is Account Receivable in finance Accounting
Ans. 
Accounts Receivable is the money owed to a company by its customers for goods or services provided on credit.
• Accounts Receivable represents the amount of money owed to a company by its customers for goods or services provided on credit.

• It is considered an asset on the company's balance sheet.

• Accounts Receivable is typically collected within a certain period of time, often 30, 60, or 90 days.

• Failure to collect on Accoun...read more
Answered by AI
Add your answer

Hsn code sac code GST number item name

Finance Accounting - voucher entry, GST details, TDS, EPF, trading account, profit &Loss Account, Balance sheet