1. Tell me the difference between AP & AR. 2. Differentiate Impairment and Depreciation. 3. Tangible and Intangible Assets. 4.Revenue Reconition.

Question

Accepted Answer

AP is the money a company owes to its suppliers, while AR is the money owed to the company by its customers.

AP (Accounts Payable) is the amount of money a company owes to its suppliers for goods or services received.
AR (Accounts Receivable) is the amount of money owed to the company by its customers for goods or services provided.
Impairment refers to a decrease in the value of an asset, while depreciation is the allocation of an asset's cost over its useful life.
Tangible assets are physical assets with a measurable value, such as buildings or equipment, while intangible assets lack physical substance, like patents or trademarks.
Revenue recognition is the process of recording revenue in the financial statements when it is earned and realizable.

Accepted Answer

1. I simply told that AP is the current liability of the organisation weather AR is the current assets of the company, AP is the amount which organisation liable to pay to its vendor for the services and facilities taken from the vendor its shows in the liability side of Balance sheet and AR is the amount which is receivable from our customers for the services and good we provide to our customer its shows in asset side of balance sheet.
2. I explained AS 28 which is all about the impairment of asset and explain the method of depreciation and also explain that depreciation is routine in nature of business whether Impairment drastic change in the value of assets. 
3 I simply told that tangible assets are those assets which have physical presence and we can touch and seem them e.g: Car, Building etc. Intangible assets are the assets which do not have physical presence we cant touch and seem them AS 26 is all about Intangible assets e.g : Goodwill,Copyrights.
4. I explain AS 9 in this question.

1. Tell me the difference between AP & AR. 2. Differentiate Impairment and Depreciation. 3. Tangible and Intangible Assets. 4.Revenue Reconition.

Popular interview questions of Accountant

Top HR questions asked in MomKidCare Accountant

1. Tell me the difference between AP &amp; AR. 2. Differentiate Impairment and Depreciation. 3. Tangible and Intangible Assets. 4.Revenue Reconition.

Popular interview questions of Accountant

Top HR questions asked in MomKidCare Accountant

1. Tell me the difference between AP & AR. 2. Differentiate Impairment and Depreciation. 3. Tangible and Intangible Assets. 4.Revenue Reconition.