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Finance Questions and Answers

Q: 1. Discuss in brief various forecasting techniques?


Deepak from India

Ans. (A) Budgeting (B) Probability (C) Time Series Analysis (D) Interpolation and Extrapolation (E) Regression Analysis

Q: 2. Is following possible or not?


To transfer cash from one bank to other bank Like SBI to PNB 


Raju from India 


Ans. Yes,  to transfer cash from one bank to other bank like transfer from your SBI account to other PNB account  is possible. This is not possible through your online bank account but you can do this by just going to  bank branch. Just go to bank branch and say. I want to transfer Rs. 80000 from my SBI account to other PNB account. SBI employee will give you a small voucher. You just write your SBI account no. and beneficiary's PNB account No. and what amount, you have to transfer. Now, every bank are connected with NEFT and RTGS. Within one hour, you can transfer your money from one bank to other bank. Your SBI account will decrease with same amount and other beneficiary's PNB account will increase with same amount.

Q: 3. Importance of funds


Niharika from India

Ans. Fund is very important in any organisation whether it is NGO or commercial because if organisation has no fund how will it operate. Every organisation keeps fund for different projects. It also estimates future net fund. It also checks whether fund has been used effectively or not.

Q: 4. The financial manager should identify surplus assets and dispose off them. why?


Anthony Otsiwah from Ghana

Ans. In this world, everything should be optimum. Suppose, you have 20 houses in different countries. You live just in one house whole year. All other 19 houses are your surplus assets. There is no need to you all 19 surplus assets because someone will may sell all these assets by becoming its false owner. What will you do? Your whole life will spend just going to court for justice. Meaning of this, there is big risk of keeping surplus assets in the business. Surplus or idle assets do not generate incomes. So, it is better dispose off.

Q : 5. Working capital formula is : current assets- Current liabilities now if diff is positive what it indicating ? if diff is Negative what it indicating?


Subramanyam from India 

If difference is positive, it indicates that you have working capital for operating your business. For checking whether it is sufficient or not, depend on lots of factors. If difference is negative, it indicates that you have not working capital for operating your business. It shows your weak condition. In simple words, when any creditor or service provide will demand money from you, you will not have cash to pay him. At that time, you have to sell your fixed assets at big loss or you have to take loan at high rate of interest. If your goodwill is in the market, you can survive with negative capital, otherwise, days are very limited for closing your business.

Q: 6. Sir,


I am investing my money plz, suggest which investment good me? My salary maximum 8000 per. month and I am invest monthly rs. 5000 /- so suggested me which investment, I have to invest?


Manoj from India

Ans. Manoj, it is good, you want to save your money and invest your money Rs. 5000 after consuming Rs. 3000. It is 62.5% of your salary. First of all check through personal budget, is 37.5% consumption is sufficient for completing your basic needs like food, cloths and living expenses because once you take decision and invested, you will no opportunity to decrease this investment. After this learn my 3 tips of investing money.

Related : Finance Chart

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Accounting Education: Finance Questions and Answers
Finance Questions and Answers
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Accounting Education
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