Theory Questions in English:
1. Show difference between private company and public company
| Private Company | Public Company |
| It is a company where number of shareholders are limited. | T is a company where number of shareholders can be unlimited. |
| It is compulsory to use word “Pvt. Ltd.” after its name. | It is compulsory to use word “Ltd.” after its name. |
2. Show differences between Preference share and Equity Share
| Equity Shares | Preference Shares |
| Equity shares represent ownership in a company, and shareholders have voting rights and share in the company’s profits and losses | Preference shares represent ownership in a company with a fixed dividend rate and priority in receiving dividends and assets in case of liquidation. |
| The dividend rate is not fixed, | Dividend rate is fixed. |
| Equity shareholders have voting rights | Preference shareholders do not have voting rights. |
3. Define Authorized capital, Subscribed capital, Paid-up capital and Called-up capital
Authorized capital: The maximum amount of capital that a company is authorized to raise through the sale of its shares to the public.
Subscribed capital: The portion of the authorized capital that has been subscribed or taken up by the shareholders of a company.
Paid-up capital: The portion of the subscribed capital that has been paid for by the shareholders of a company.
Called-up capital: The portion of the subscribed capital that the company has requested to be paid by the shareholders.
4. Show the difference between share and debenture
Ownership: Shares represent ownership in a company, while debentures represent debt owed by the company to the debenture holder.
Returns: Shareholders receive returns in the form of dividends, while debenture holders receive fixed interest payments.
5. Write about MOA, AOA and Prospectus
Memorandum of Association (MOA): A legal document that that includes name of company, registered office, objectives.
Articles of Association (AOA): A document that outlines the rules and regulations for the internal management of the company, such as the powers and duties of directors, shareholder meetings, and voting rights.
Prospectus: A formal document that provides important information about the company while issuing shares or debentures to the public. It includes financial statements, management structure, risks etc.
6. Define cumulative and non-cumulative preference share.
Cumulative preference shares are known as the preference shares that have the power to collect dividends which are not paid in the future years, in case the same is not paid during a year. If the dividend is not accumulated over the unpaid dividends in a particular year it is called Non-cumulative shares.
7. Write meaning and objectives of Cost Accounting and Financial Accounting
| Cost Accounting | Financial Accounting |
| Definition: Cost accounting is the process of recording, classifying, analyzing, and allocating costs associated with the production of goods or services in a company. Objectives: Cost determination Cost control Profitability analysis Determine Selling Price | Definition: Financial accounting is the process of recording, classifying, summarizing, and communicating financial information of a company to external stakeholders. Objectives: Financial Reporting Decision Making Supporting budgeting and forecasting |
8. Types of Overhead
| On basis of Function | On basis of Elements | On basis of Behaviour | On basis of control |
| -Factory Overhead -Office/Administrative Overhead -Selling/ Distribution Overhead | -Indirect Material -Indirect Labour -Indirect Expenses | Fixed Overhead Variable Overhead Semi-Variable Overhead | -Controllable -Non-Controllable |
9. Write about apportionment and re-apportionment of overhead?
In accounting, apportionment of overhead refers to the distribution of indirect expenses (such as rent, lighting, or administrative costs) across various departments based on suitable bases like floor area, number of employees, or machine hours.
Re-apportionment is the redistribution of service department overheads to production departments, ensuring that only production departments carry the total overhead for accurate cost calculation.
10. Various types of Costing
| Types of Costing | Definition | Purpose | Example |
| Job Costing | A method of cost accounting used to determine the cost of producing unique or customized products or services | To determine the cost of each job or project | Cost of building a bridge |
| Process Costing | A method of cost accounting used to determine the cost of producing same products through continuous processes | To determine the average cost of each unit of product | Cost of producing a unit of Biscuit. |
| Batch Costing | A method of cost accounting used to determine the cost of producing a specific batch or group of products | To determine the cost of each batch or group of products | Cost of producing a batch of cookies |
11. What are the two duties of store-keeper?
The two duties of storekeeper are: Inventory Management, Record Keeping, Stock Verification
12. Difference between centralize purchase and decentralize purchase
| Centralize Purchase | Decentralize Purchase |
| A purchase model in which all purchasing decisions are made by a central purchasing department or team | A purchase model in which individual departments or business units are responsible for their own purchasing decisions |
| Decisions are made by a central team or department | Decisions are made by individual departments |
| Company can enjoy huge discount on purchase | Company cannot enjoy huge discount on purchase |
13. What is Bin Card? – A record that tracks the receipt, issue and balance of inventory within a particular time for stock/ store management.
14. What is bar code? – A series of lines or patterns printed on a product or packaging that can be scanned electronically to retrieve information about the product, such as its price, location, or other data.
15. What are the motives of holding inventories?
The motives of holding inventories are meet customer demand, protect from uncertainties, smooth production, take advantage of quantity discounts
16. Difference between Time rate wage system and Piece rate wage system.
| Time Rate Wage System | Piece Rate Wage System |
| The wage rate system in which wages Is paid on the basis of time worked by the worker is called time rate wage system. | The wage rate system in which wages Is paid on the basis of unit produced by the worker is called piece rate wage system. |
| Advantage: Simplicity, High Quality | Advantage: High Production, Promote efficient worker |
| Disadvantage: Low Production, Discourage efficient worker | Disadvantage: Low Quality, Discrimination among worker |
17. What is computerized accounting system (CAS)?
Computerized Accounting System refers to the processing of accounting transaction through the use of computer in order to produce accounting records and reports.
18. What are the elements of computer system in accounting?
The elements of computer system in accounting are: Hardware, Software, People, Procedures, Data and Internal Controls (Security measures).
19. What are the application of computer in accounting?
- Recording of business transactions.
- Store Accounting
- Payroll Accounting
- Bank Reconciliation
- Budgeting
20. Write features, importance, uses and limitation of accounting software
| Features | Importance | Uses | Limitations |
| a. Flexibility b. Cost and Maintenance c. Training needs d. Size of Organization e. Level of Secrecy f. Transfer of data | Fast processing Updated Information Accurate Information Easier availability of Information Efficiency | Improves accounting accuracy Speed up accounting calculation Improve data security Generate accurate reports Increase productivity | High installation cost Cost of training Fear of unemployment System failure Health impact |
Theory Questions in Nepali:
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