10+ Future Institute of Technology Interview Questions and Answers

Accrual is the recognition of revenue or expenses when they are incurred, while advance is the payment or receipt of funds before the related revenue or expenses are recognized.

• Accrual is based on the matching principle, where revenue or expenses are recognized when they are incurred, regardless of when the cash is received or paid.

• Advance refers to the payment or receipt of funds before the related revenue or expenses are recognized.

• Accrual accounting is used to record trans...read more

There are 2 rates given for rent in Sec 194I to differentiate between rent paid for plant/machinery and rent paid for land/building.

• Sec 194I of the Income Tax Act deals with the deduction of tax at source on rent payments.

• The two rates are 10% and 2% depending on the type of rent paid.

• The 10% rate is applicable when the rent is paid for the use of plant, machinery, or equipment.

• The 2% rate is applicable when the rent is paid for the use of land, building, or furniture.

• This di...read more

BRS stands for Bank Reconciliation Statement. It is a process of comparing the bank statement with the company's cash book to identify discrepancies.

• BRS is used to ensure that the company's records match the bank's records.

• It involves comparing the transactions recorded in the cash book with the transactions listed in the bank statement.

• Any differences or discrepancies are identified and reconciled.

• Examples of discrepancies include outstanding checks, bank charges, and deposi...read more

The TDS rate for Section 194 C is 1% for individual or HUF payees and 2% for other payees.

• TDS rate for Section 194 C is 1% for individual or HUF payees and 2% for other payees.

• Section 194 C of the Income Tax Act pertains to payment to contractors and sub-contractors.

• The TDS rate is applicable when the payment exceeds Rs. 30,000 in a single transaction or Rs. 1,00,000 in aggregate during a financial year.

• For example, if a company pays a contractor Rs. 50,000 for a project, the...read more

The TDS rate for Sec 194 I is 10%.

• TDS stands for Tax Deducted at Source.

• Section 194 I of the Income Tax Act pertains to TDS on rent.

• The TDS rate for rent paid for land, building, or furniture is 10%.

• If the rent exceeds Rs. 2,40,000 per annum, the payer is required to deduct TDS.

• For example, if the monthly rent is Rs. 20,000, the TDS deducted would be Rs. 2,000.

The TDS rate for Section 194 J is 10%.

• Section 194 J of the Income Tax Act pertains to fees for professional or technical services.

• The TDS rate for such services is 10%.

• This rate is applicable when the payment exceeds Rs. 30,000 in a financial year.

• For example, if a company pays a consultant Rs. 50,000 for their professional services, they need to deduct TDS at a rate of 10%.

The entry for Sales is a record of a sales transaction in the accounting books.

• The entry for Sales typically includes debiting the Accounts Receivable or Cash account and crediting the Sales Revenue account.

• If the sale is made on credit, the Accounts Receivable account is debited. If the sale is made in cash, the Cash account is debited.

• The Sales Revenue account is credited to record the increase in revenue.

• For example, if a company sells a product for $100 in cash, the entry...read more

Yes, I have experience in filing GST returns.

• Yes, I have filed GST returns in my previous role as an accountant.

• I am familiar with the process of filing GST returns and have a good understanding of the necessary documentation.

• I have successfully filed GST returns for multiple clients, ensuring compliance with all regulations and deadlines.

• I am comfortable using GST software and staying updated with any changes in the GST laws and regulations.

The cash flow statement is a financial statement that shows the inflows and outflows of cash in a company.

• It provides information about the cash generated from operating activities, investing activities, and financing activities.

• Operating activities include cash received from sales, payment to suppliers, and payment to employees.

• Investing activities include cash used for purchasing or selling assets like property, plant, and equipment.

• Financing activities include cash receive...read more

Accrual refers to the process of recording revenues and expenses in the accounting system before the actual cash is received or paid.

• Accrual accounting recognizes revenues when they are earned and expenses when they are incurred, regardless of when the cash is received or paid.

• It helps in matching revenues and expenses in the correct accounting period.

• Accruals are necessary to ensure accurate financial reporting.

• For example, if a company provides services to a customer in Dec...read more