Sr. Executive Accounts - Accounts Payable Dept Interview Questions and Answers

Buying equipment impacts all three financial statements.

• The purchase will increase the asset balance on the balance sheet.

• The cash or accounts payable balance will decrease on the balance sheet.

• The income statement will show a decrease in net income due to the expense of the equipment.

• Depreciation expense will be recorded on the income statement over the useful life of the equipment.

• Cash flow statement will show a decrease in cash from investing activities.

Account rules are guidelines and principles that govern the recording and reporting of financial transactions.

• Accounts must be classified into appropriate categories such as assets, liabilities, equity, revenue, and expenses.

• Debits must always equal credits in every transaction.

• Transactions must be recorded in the accounting system in a timely and accurate manner.

• Financial statements must be prepared in accordance with generally accepted accounting principles (GAAP).

The TDS rate at present refers to the current rate of tax deduction at source.

• TDS rate is the percentage of tax that is deducted at the time of making certain payments such as salary, rent, etc.

• The rate of TDS can vary depending on the nature of payment and the provisions of the Income Tax Act.

• For example, the TDS rate for salary payments may be different from the TDS rate for rent payments.

• The TDS rates are periodically revised by the government, so it is important to stay u...read more

TDS stands for Tax Deducted at Source. It is a system in which tax is deducted at the time of making payments such as salary, rent, etc.

• TDS is a method of collecting tax in India

• It is applicable to various types of payments like salary, rent, commission, etc.

• The person making the payment deducts a certain percentage of tax before making the payment

• The deducted tax is then deposited with the government

• TDS helps in ensuring regular cash flow to the government and prevents tax e...read more