Corporate account important question

Hello aspirant,

Following are some of the important questions of Corporate Accounting:

• Explain the concept of share capital and types of shares issued by companies.
• What is a debenture? How does it differ from shares?
• Define redemption of shares and debentures. What are the accounting procedures for the same?
• What is a consolidated financial statement? Why is it prepared?
• Explain the concept of goodwill and methods of its valuation.
• What is the significance of the Memorandum of Association and Articles of Association in corporate accounting?
• How is bonus share issued, and what are its accounting implications?

Thank you

Hello,

The most commonly appearing topics to be studied when conducting corporate accountancy exams include the following items, especially for professional certifications or degree exams. Some of these key questions you may want to focus on are:

1. Journal Entries and Accounting Process: Understand the process of journalising transactions, including both cash and credit transactions. General questions on how to make journal entries for various forms of business activities, which may include purchases, sales, expenses, etc are common.
2. Trial Balance and Adjustments: Be in a position to calculate trial balances and make necessary adjustments. Practice questions may include how one should make adjustments for accrued expense, depreciation, or bad debt.
3. Final Accounts (Profit and Loss, Balance Sheet): You're likely to meet questions wherein you have to prepare the Profit and Loss account and the Balance Sheet based on a given trial balance. Make sure you know how to treat closing entries.
4. Methods of Depreciation: Understand how to compute depreciation by various methods, which include Straight Line Method, Written Down Value Method. The questions usually deal with the application of such methods in corporate accounting.
5. Company Accounts: Prepare questions regarding preparation of company accounts and how share capital, reserves, and dividends are dealt with.
6. Partnership Accounts: The questions may relate to preparing partnership accounts, distribution of profits, and variation in partnership deeds.
7. Consolidation of Accounts: If you are dealing with a corporate group, practice questions on how to consolidate the accounts of a parent company and its subsidiaries.
8. Cash Flow Statements: Know how to prepare and analyze a cash flow statement. Practice adjusting for operating, investing, and financing activities.
9. Taxation and Legal Compliance: Have an understanding of how corporations are taxed and how their taxes are included in their financial statements. Some tests include questions relating to legal compliance with regulations such as IFRS or GAAP.

For more comprehensive practice or access to sample questions, sites like Careers360 or LinkedIn Learning could offer useful preparation for a corporate accounting exam. Find some exam prep materials at this page from Careers360 and take practice tests here.