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Selected Interview QuestionsCandidate: 00101.Why you are willing to join in a bank?I am willing to join in a bank since I hope that I may be having more opportunities to serve the public. Banks have better career opportunities by means of periodical promotions to higher cadre.02.What do you mean by appraisal of gold loans?Gold loans are granted against the security of gold jewellery namely gold chains, necklaces etc., The jewellery apart from gold contains certain amount of copper and stones. Appraiser is a person well versed in the art of appraising the jewellery and on appraisal of the jewellery, he will be finding out the approximate gold content so that the bank may be able to provide loans against the gold content.03.What are the different kinds of term deposits available in a commercial bank?The different kinds of term deposits available in a commercial bank are – fixed deposit, recurring deposit and reinvestment deposit. In the case of fixed deposit, a fixed amount is accepted for a definite period and interest is paid on quarterly basis. In the case of reinvestment deposit which is similar to fixed deposit, interest is paid on maturity since interest is reinvested. In the case of recurring deposit, monthly instalments are accepted for a fixed period.04.What is the minimum period for which a fixed deposit is accepted and the maximum period for which a fixed deposit is accepted?The minimum period for which fixed deposit is accepted is seven days and the maximum period is ten years.05.Whether a fixed deposit can be accepted for a period more than ten years?In the case of deposits in the names of minors on account of settlement of claims, the deposit can be for more than ten years06.What do you mean by FERA?FERA means foreign exchange regulations act and it came into effect from the year 1973. An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of 1973, it is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.07.What do you mean by ECS?ECS means electronic clearing service and the customer can authorize on periodical basis to make payment of certain utility bills like electricity charges, water charges etc., by debiting his account till such time he submits a revocation letter. Similarly, he can authorize corporate to credit the dividends on shares and interest on debentures as and when due to the credit of his account with the bank.08.What is the minimum amount that can be sent through RTGS?The minimum amount that can be sent through RTGS is Rupees two lakhs and there is no maximum limit09.What is the maximum amount that can be remitted through NEFT?There is no or maximum limit for remittances sent through NEFT10.What is the maximum amount that can be sent abroad by any resident individual?Under liberalized remittance scheme, all resident individuals including minors are allowed to freely remit an amount upto US dollars 250000 (or its equivalent freely convertible foreign currency) per financial year11..What is the name of apex bank which is responsible for the development of agriculture in the country?NABARD is the apex bank which is responsible for the development of agriculture in the country.12.What are the different kinds of schemes available in our country aiming towards poverty alleviation?National old age pension scheme; Jawahar Gramin Samruddi Yojana; National Family Benefit scheme; Mahatma Gandhi National Rural Employment Guarantee Scheme; National Maternal Benefit Schemel Annapurna etc.,13.What do you mean by crossing of any cheque?Writing of two parallel transverse lines drawn on the face of the cheque on top left hand corner with or without any words between the lines is known as crossing and it is for the purpose of making payment of the cheque through an account in the name of the payee or holder.14.What are the different kinds of crossing?Two parallel transverse lines drawn on the face of the cheque on top left hand corner of the cheque with any words or without any words is known as general crossing and the the payment can be made to the account of the payee or holder with any bank. In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.15.What do you mean by CASA?CASA means current and savings and this is applicable to computerized branches linked under core banking solution16.Whose signature is available in Rs. 100/- currency note?The signature of RBI governor is available in Rs. 100 currency note17.What do you know by dividend?Dividend is the return available in the form of money for the investments made by the shareholders in the equity shares and preference shares of any company.18.Bank holidays are declared according to which act?Holidays for banks are declared according to Negotiable Instruments act 1881 by the respective state governments in their states. However, all Sundays, all second and fourth Saturdays have been declared as holidays apart from the holidays permitted for religious and national ceremonies.19.Banks are functioning according to which act?Commercial banks in the country are functioning according to Banking Regulation act 1949 and to some extent as per Reserve Bank of India act 193420.RBI is functioning in the country as per which act?Reserve Bank of India is functioning according to Reserve Bank of India act 1934.Candidate: 00201.What do you mean by a guarantee?Guarantee is an undertaking executed by one person called as guarantor in favour of another person called as beneficiary expressing his intention to make payment in the event of failure of the principal debtor on payment of a debt or failure to perform any contract within the stipulated time or according to the terms of the contract.02.What are the different types of guarantees?The different types of guarantees are financial guarantee, performance guarantee and deferred payment guarantee03.What do you mean by letter of credit?Letter of credit is an undertaking executed by one banker on behalf of its customer to honour bills and documents drawn by another person as per the terms and conditions as mentioned in the letter of credit04.What do you know by packing credit advance?It is the preshipment advance granted by one bank to the exporter for the purpose of procuring raw materials; payment of various duties like customs duty, excise duty; packing charges; shipment charges etc.,05.What do you mean by special crossing?In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.06.What do you know by IFSC code ?IFSC means Indian Financial System Code and this is one alphanumeric code consisting of eleven digits of which the four alphabetic digits represent the name of the bank mentioned in abridged form and the next zero is known as control number and the last six numeric digits represent the branch code of the bank.07.Which is called as mother of deposits?Savings deposit is known as mother of deposits. Normally the first time customers will be advised to open savings deposits with the bank branch before availing any other facility with the bank08.Who is a called as natural guardian?Bother mother and father are known as natural guardian for the purpose of opening accounts in the name of minors represented by the guardian.09.Whether grandfathers and grandmothers can be natural guardians?Grand fathers, grandmothers grand grandfathers or grand grandmothers cannot represent as natural guardians on be behalf of the minors10.Which type of credit facility is available to a farmer for raising crops?For raising crops, the farmers are provided with crop loans, Kisan Credit Cards etc.,11.What do you mean by NULM?National Urban Livelihoods Mission (NULM) was launched by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), Government of India in 24th September, 2013 by replacing the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY).The NULM will focus on organizing urban poor in their strong grassroots level institutions, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment venture by ensuring easy access to credit. The Mission is aimed at providing shelter equipped with essential services to the urban homeless in a phased manner. In addition, the Mission would also address livelihood concerns of the urban street vendors12.What do you mean by Gram Sadak Yojana?The Pradhan Mantri Gram Sadak Yojana called as PMGSY was launched by the Government of India for the purpose of providing connectivity to unconnected habitations as part of a poverty reduction strategy. Government of India is endeavouring to set high and uniform technical and management standards and facilitating policy development and planning at state level in order to ensure sustainable management of the rural roads network.13.What are the salient features of MGNREGA?MGNREGA is known as Mahatma Gandhi National Rural Employment Guarantee act and according to this employment is guaranteed at least one person per household in rural areas. It aims at enhancing the livelihood security of people living in rural areas by guaranteeing hundred days of wage employment during each financial year to a rural household whose adult members volunteers to undertake unskilled manual work14.Which authority is supervising the functions of insurance companies?IRDA – Insurance Regulatory and Development Authority is the authority responsible for supervising the functions of insurance companies in our country15.What is meant by IPO?IPO means initial public offer and this is the first time public offer of equity shares, preference shares or debentures to the public for subscription16.What is meant by ASBA?ASBA means applications supported by blocked amount. Nowadays investors are permitted to remit the amount through ASBA demand drafts drawn in ASBA accounts for the purpose of subscribing shares or debentures through initial public offer and further public offer. When the demand draft is issued, instead of debiting the amount in the account, the amount is blocked till such time the shares or debentures are allotted. On allotment, the entire amount is debited; in the case of partial allotment, the amount is debited equivalent to the value of allotment and in the case of non allotment, the entire amount is allowed for further use. For the intervening period, the depositor earns interest as applicable to the category of deposits.17.What is meant by Performance guarantee issued by any commercial bank?In the case of contracts in favour of governments, the contractors are in a position to provide a bank guarantee by a reputed commercial bank, thereby undertaking to guarantee the government department to compensate the loss on account of failure of performance of the contract by the contractor within the due date or failure to perform the contract as per the terms and conditions of the contract. This is known as performance guarantee.18.What do you mean by packing credit facility issued by any commercial bank?Packing guarantee is known as preshipment advance provided by the commercial bank to the exporter for the purpose of procuring raw materials, packing materials or making payment towards customers duty, excise duty, transportation charges etc.,19.What do you mean by notice money?Notice money is money borrowed for a period of two days and more and upto fourteen days in the call money market.20.Treasury bills are issued by which authority and what are the different kinds of treasury bills available in the country?Treasury bills are issued by central government and state governments for the purpose of mobilizing funds from the public and others towards meeting the cost of various projects. There are three kinds of treasury bills as at present namely – 91 days, 182 days and 364 days. 91 days treasury bills are issued each Friday and the notified amount is Rupees one hundred crores. 182 day treasury bills are issued during alternative Wednesdays which is non reporting week and the notified amount is Rupees 100 crores and 364 days treasury bills are issued on alterntive Wednesdays which is a reporting week and the notified amount is Rupees 500 crores.Candidate: 00301.What do you know by PIN number?PIN number is four digit number expressed in numerical characters. PIN number is used for the transactions done using debit cards and credit cards through automated teller machines and point of sale terminals.02.What do you know by PAN number?PAN number is known as permanent account number. This is used for the purpose of remittance of income tax with income tax department. Tax payers should get one PAN number by sending an application along with relevant documents and by payment of specified sum of money to Income tax department or their agencies. It is ten digit number consisting and alphapetical and numerical characters.03.What are the functions of DICGC?DICGC means Deposit Insurance and Credit Guarantee Corporation and this corporation provides deposit insurance upto an amount of Rupees one lakh per depositor per bank in the event of insolvency of the bank and it also provides small loans guarantee upto certain limits04.What is the role played by ECGC?ECGC provides guarantee support to the exporters of the country in the form of several export guarantees05.Mention the Regional Rural Banks which are functioning in Tamilnadu?The Regional rural banks which are functioning in Tamilnadu are Pandiyan Grama Bank and Pallavan Gramin Bank. Pandiyan Grama Bank has been sponsored by Indian Overseas Bank and pallavan Gramin Bank has been sponsored by Indian bank.06.What do you mean by Mergers and what are the different kinds of mergers?When two independent units merge together to form a single unit, it is known as merger. The mergers can be vertical merger, horizontal merger, reverse merger, consolidation, amalgamation etc.,07.What do you mean by horizontal merger and reverse merger?When the business functions of two units are identical in nature and when the merger takes place between those units, it is known as horizontal merger. New Bank of India merged with Punjab National Bank and both are banking organizations. Industrial Credit and Investment Corporation of India Limited was instrumental in establishing ICICI bank as per LPG norms and subsequently Industrial Credit and Investment Corporation Limited merged with ICICI Bank and when a parent unit gets merged with an ancillary unit, it is known as reverse merger.08.Which are the top two private sector banks in our country?The top private sector banks in our country are HDFC bank limited and ICICI bank limited09.Whether housing loan is a priority sector advance and if so, upto what amount?Housing loans granted are treated as priority sector advances subject to certain conditions. Loans to individuals up to Rupees 28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to Rupees 20 lakh in other centres for purchase/construction of a dwelling unit per family, are eligible to be considered as priority sector provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rupees 35 lakh and Rupees 25 lakh, respectively. Housing loans to banks’ own employees are not eligible for classification under priority sector.10.Whether educational loan is a priority sector advance?Loans to individuals for educational purposes including vocational courses upto Rupees 10 lakh irrespective of the sanctioned amount are eligible for classification under priority sector.11.What do you mean by micro, small and medium enterprises?The classification is based on original investment in plant and machinery: For micro enterprises, upto Rs. 25 lakhs for manufacturing units and Rupees 10 lakhs for service units; For small enterprises, for manufacturing units above Rupees 25 lakhs and upto Rs. 5 crores and for service units above Rupees 10 lakhs and upto Rupees 2 crores; For medium enterprises, for manufacturing units above Rupees 5 crores and upto 10 crores and for service units above Rupees 2 crores and upto Rupees five crores12.What do you mean by KYC and name any two important documents which are obtained as per KYC?KYC means know your customer guidelines and these guidelines were prescribed by RBI for new customers who are willing to open accounts with commercial banks and according to KYC, any new customer who is willing to open accounts with commercial banks should submit the photocopy of anyone of the following namely; driving licence, voter id card, AADHAARA card, passport as address proof and photocopy of anyone of the following namely; driving licence, voter id card, AADHAAR card, passport, pancard as identity proof. KYC is antimony laundering device.13.What is the present repo rate and reverse repo rate?The present repo rate is 6.25% and reverse repo rate is 5.75%14.In the case of MICR code, the middle three digits represent what?MICR code consists of nine numerical digits and the middle three numerical digits represent bank name15.PAN number consists of how many alpha characters?PAN number consists of ten digits. The first three alpha characters are random alphapetical characters between AAA to ZZZ; next one alpha character represents the category of the cardholder; the next one alpha character represents the first character of the name of the cardholder; the next four numerical digits are auto generated sequential numbers and the last one single alpha character is a check digit.16.What do you know by biometric automated teller machines?In the case of automated teller machines, the four digit numerical PIN number is used for performing transactions using debit card and credit card. In the case of biometric automated teller machines, instead of PIN numbers, anyone of the following body parts is used – left hand thumb impression; eye retina and voice recognition. In India, the left hand thumb impression is the accepted mode and these kinds of automated teller machines are known as green label automated teller machines.17.What is the criteria by which a bank is considered as largest bank?For the purpose of ranking, a bank is considered to be largest or smallest taking into consideration the business position of the bank; namely – the total deposits and total advances as at the end of March each year.18.What do you mean by commercial paper?Commercial papers are issued by well rated organizations for mobilizing funds from the public and other corporate. They are issued at a discount and they are freely negotiable by endorsement and delivery. The minimum maturity period is seven days and the corporate should have earned credit rating equivalent to P2 issued by CRISIL19.What do you mean by FCNR?FCNR means foreign currency non resident accounts. Non resident Indians and Persons of Indian origin are eligible to invest in this deposit. It is a term deposit accepted in the currencies – US dollar, Sterling Pound, Euro, Japanese Yen, Canadian dollar and Australian dollar. The minimum period of deposit is one year and the maximum period is five years and the deposit is held in foreign currencies and the interest earned is free from income tax.20.What do you mean by Escheat?He is a person who dies without leaving any legal heirs and in this case, his estate will revert to the state government.Candidate: 00401.What do you mean by money laundering?Using the banking channel for the purpose of bringing illegal money is known as money laundering.02.What do you mean by subprime lending?Mass lending by commercial banks to the borrowers without ascertaining the credit worthiness of the borrowers03.What is meant by LPG and who is responsible for introduction of LPG strategy in our country?LPG means liberalization, privatization and globalization and this was coined by Dr. Manmohan Singh, the then finance minister of our country. The salient highlights of the Liberalisation, Privatisation and Globalisation Policy in India are: Foreign Technology Agreements; Foreign Investment; MRTP Act, 1969 (Amended); Industrial Licensing; Deregulation Beginning of privatization; Opportunities for overseas trade; Steps to regulate inflation; Tax reforms; Abolition of License -Permit Raj04.What do you mean by PURA?PURA means providing urban amenities in rural areas. This concept was coined by Dr. A.P.J. Abdul Kalam, the then president of India.05.What do you know by current ratio?It is one equation between current assets and current liabilities. This ratio provides the liquidity position of the organization. When the ratio is more than one it is known as positive current ratio and the unit is having sufficient working capital and when it is less than one, the unit is found to have more current liabilities than current assets and the liquidity position is found to be very weak.06.What do you know about negotiable instruments act?In India, the negotiable instruments act was passed during 1881 which came into force with effect from March 01, 1882. Negotiable instruments means and include promissory note, bills of exchange and cheque payable to order or bearer. Promissory note, bill of exchange, cheque and demand draft are negotiable instruments.07.What do you know by MICR?MICR means magnetic ink character recognition. MICR code is available in MICR bank at the bottom of the cheque or demand draft. It consists of nine numerical digits of which the first three digits represent the centre/city; the middle three digits represent the bank and the last three digits represent the branch of the bank.08.When it comes to rural lending, which are all considered to be priority sector advances?When it comes to rural lending, the loans granted to the following are considered to be priority sector advances – Loans granted to all agriculture related activities; self help group; Differential rate of interest; Loans to SC/ST beneficiaries; Loans provided to doctors for setting up clinics in rural areas; Loans to dealers in fertilizers and pesticides; loans to dealers of springler irrigation and drip irrigation equipments etc.,09.Who is called as an authorized dealer?Authorised dealer is at present known as authorized person. Authorised person is an individual or organization permitted to deal in foreign exchange business in the country.10.What do you know by financial inclusion?Financial inclusion means the following: Providing formal banking services to poor people in urban and rural areas; Promoting the habit of money savings, insurance, pension-investment among poor people; Helping the people in getting loans at reasonable rates from commercial banks so that they do not become victims to local moneylenders11.What are the important initiatives taken through financial inclusion in the country?The following are the important initiatives taken through financial inclusion in our country: Lead banking scheme; No frill accounts; Basic savings bank deposit accounts; JANDHAN accounts; business correspondent and business facilitator facilities; Swabhiman campaign;12.What do you mean by MCLR?MCLR replaces the base rate system. RBI introduced the system with effect from 01.04.2016 in order to determine the base rate by commercial to improve the efficiency of monetary policy transmission. All rupee loans sanctioned and credit limits renewed with effect from 01.04.2016 to be priced with reference to MCLR and it will be an internal benchmark for the banks. It consists of marginal cost of funds, negative carry on account of CRR, operating costs and tenor premium. The marginal cost of funds consists of two components namely; marginal cost of borrowings and return on networth13.What are the major money market instruments?Certificate of deposits; Commercial paper; Inter Bank participation certificates; iner bank term money; Treasury bills; Bills rediscounting and call/notice money14.What are the differences between NEFT and RTGS?Both are two categories of online remittance facilities through CBS enabled branches of commercial banks. The minimum balance that can be sent through RTGS is Rupees two lakhs whereas in the case of NEFT, there is no such limit. The beneficiary gets his funds at real time and it means instantaneously without any loss of time. In the case of the beneficiary gets his funds in between batches15.Who is deciding the rate of interest for savings deposit accounts?Rate of interest for savings deposits is decided by respective commercial banks only and RBI has permitted full freedom in this connection.16.Who cannot open savings deposit accounts?Proprietorship concerns, partnership firms, limited liability partnership firms, private limited companies and public limited companies are not permitted to open savings accounts17.What is meant by memorandum of association?Memorandum of association is the parent document for any company whether it is a private limited company or private limited company. It contains the details of formation of the company, policies, objectives, registered office and more.18.What is known as power of attorney?Power of attorney is an authorization given by one person called as principal in favour of another person called as an agent authorizing the agent to perform certain activities on behalf of the principal and it can be specific power of attorney or particular power of attorney.19.In which currencies FCNR accounts can be opened in our country?FCNR account can be opened in the following currencies namely; US dollars, Sterling Pounds; Euro; Japanese Yen; Australian dollars and Canadian dollars.20.What are the differences between NRE and FCNR?NRE and FCNR accounts are opened by non resident Indians and Persons of Indian Origin in India. NRE accounts are to be opened in rupees whereas FCNR is opened in foreign currencies. NRE accounts can be opened in the form of savings account, current account, reinvestment deposit and fixed deposit whereas, FCNR account is permitted to be opened as fixed deposit or reinvestment deposit. NRE term deposits can be opened for a minimum period of seven days and maximum period of ten years. FCNR accounts can be opened for a minimum period of one year and maximum period of five years.Candidate: 00501.What do you mean by masala bonds?Masala bonds are the bonds issued for rupee denominated borrowings by Indian companies in overseas markets02.What do you mean by secondary market in our country?Secondary market pertains to capital market and it is also known as stock exchange or old issues market. Shares, debentures and bonds can be bought and sold from the stock exchange through registered brokers.03.What do you mean by fund based limits and non fund based limits?The loans provided to the borrowers in the form of term loans, overdrafts, cash credits and bills discounting limits are known as fund based limits since funds are released to the borrowers. Guarantees and letter of credits are non fund based limits since no funds are provided for the time being since they are contingent liabilities.04.What do you mean by off balance sheet items?Guarantees, letter of credits and bills sent for collection for which proceeds are yet to be realized are known as off balance sheet items05.What do you mean by closed ended scheme?This is one form of mutual fund scheme. Like initial public offer, the scheme is open for a certain period only and after which the public cannot invest their amount in the units under this scheme.06.What do you mean by open ended scheme?This is one mutual fund scheme and the units under scheme can be purchased and sold at any time07.What do you mean by overdraft facility granted by a bank?Overdraft is a facility granted by the banks towards meeting the working capital requirements of a borrower. This is provided by means of credit limit over and above the current account balance and the borrower has to pay the interest as and when due.08.What do you mean by collateral security?Collateral security is an additional security provided by the borrower in addition to the primary security. For example, in the case of vehicle loan, the car purchased out of loan is known as the prime security and the insurance policy obtained by the bank from the borrower for the sanction of this loan is known as collateral security.09.In regard to educating a customer, what are the different kinds of information boards displayed in a bank branch?The following boards are available in the bank branches – Working hours and business hours; Interest rates on various deposits; Interest rates for loans; Service charges; Time norms for various services; Details of schemes available in the branch10.Who is the present RBI Governor?The present governor of RBI is Shri Urjit Patel and he is functioning as the governor of RBI since 04th September, 201611.What do you mean by unclaimed deposits?The deposits which are not in operation for more than ten years are known as unclaimed deposits. For the purpose of this classification, the customer induced transactions are only taken into account.12.How many regional centres are available for RBI in the country?Reserve Bank of India has four regional centres at the following places – Chennai, Kolkatta, New Delhi and Mumbai.13.What do you mean by white label automated teller machines?The automated teller machines which are maintained and managed by non bank entities are known as white label automated teller machines. In our country TATA Indicash and Muthoot finance are having such machines installed at various centres.14.What are the advantages of CTS?CTS means cheque truncation scheme. This is used for clearing purpose. Normally commercial banks used to send the physical cheques through their15.What do you mean by certificate of deposits?Certificate of deposits are issued by scheduled commercial banks (except Regional Rural Banks) and all financial institutions within their umbrella limits. Individuals, corporate, companies, trusts, funds and associations can invest in certificate of deposits and they are issued for a minimum period of seven days and maximum period of twelve months in the case of commercial banks and in the case of financial institutions the minimum period is one year and maximum three years, Minimum amount for investment is Rupees one lakh and in multiples of Rupees one lakh.16.RBI is called by which names – mention four names?RBI is called by the following names – banker to banker; lender of the last resort; custodian of banks; banker to government;17.What do you mean by ways and means advances?Ways and means advances were introduced as per an agreement between Reserve Bank of India and Government and they are temporary overdraft facilities provided by RBI to central government and state governments and the purpose is to bridge the time interval of mismatch the government expenditure and receipts. The duration of the limit is ten days for central government and 14 days for state government departments.18.Who is banking ombudsman and by whom he is appointed?Banking Ombudsman is an arbitrary authority who resolves the complaints received from the customers of commercial banks in regard to bank related issues.19.What do you mean by EEFC account?Exchange Earner’s Foreign Currency account is an account maintained in an account maintained in foreign currency with an authorized dealer ; i/e/ a bank dealing in foreign exchange. Professionals, exporters, trainers etc., who are in receipt of foreign exchange for the services extended by them in foreign countries can invest the amount in EEFC account and the account will be in the form of current account and no interest is paid for the balance held in EEFC account.20.What do you know by NBFC?NBFC means non banking finance companies. It is a company registered under Indian Companies act 1956 and presently 2013 engaged in the business of providing loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire purchase, insurance business, chit fund business etc.,Candidate: 00601.What do you mean by arbitrage?It is the process of purchase of one security from one market and selling the same security for earning a profit at the same time at another market.02.What do you mean by Bonus shares?It is the free allotment of shares in certain proportion to the existing shares held by the shareholders of a company and this is a means of providing reward to the investors for their contribution to the growth of the organization by capital investment03.What do you mean by Bull?It is a term given to a speculator on stock exchange who buys the securities in expectation of a rise in the prices. The market is called as bullish when there is a domination of buyers over the sellers04.What is known as dematerialization?Dematerialisation is the process by which shares in the physical form are cancelled and they are issued in electronic form. The certificates are known as demat shares. This process eliminates the time and manpower involved in transfer and registration of shares from the seller to the buyer05.What do you mean by moorat trading?It is the auspicious trading on a special day, say Diwali during some specified hours.06.What do you mean by rights issue?It is the issue of new shares to the existing shareholders in a fixed ratio to those already held at a price which is generally below the market price of the old shares.07.What do you mean by futures?It is a standard contract issued on an agreement to buy or sell an asset at a certain price at a certain time in future. It is an obligation on the buyer to purchase the underlying instrument and the seller to sell it.08.What do you mean by forward?The forward is a contract that is traded off the stock exchange and it is self regulatory and has certain flexibility unlike future which are traded at stock exchange only and it do not have flexibility of quantity and quality of commodity to be delivered and these are regulated by Securities Exchange Board of India, Reserve Bank of India or other agencies.09.What do you mean by factoring?Factoring is an arrangement in which short term domestic receivables on sale of goods or services are sold to a company called as factor and this scheme came into existence during 1991 based on the report of Kalyanasundaram Committee10.What do you mean by forfeiting?Forfaiting represents the purchase of obligations, which fall due at some future date and arise from the delivery of goods in export transactions, without recourse to the previous holder of the obligations.11.What do you mean by leasing?A lease is a contract where the owner of the assets transfers the right to another person to use the assets against the payment of fixed lease rentals. In the case of one lease contract, there are two parties namely – the lessor or the owner and the lessee or user. The lessor remains owner and the leased property remains with the possession of the lessee.12.What do you mean by debt market?It is a market wherein the debt instruments are issued to the public by any company for investment and such debt instrument bears a fixed interest rate payable half yearly on specific dates and principal amount repayable on particular date on redemption. Debentures are normally secured/charged against the asset of the company in favour of debenture holder. The following are some debt instruments – debenture; bond; zero coupon bond; convertible bond; security receipts etc.,13.What do you mean by greenshoe option?It is an option provided by Securities and Exchange Board of India to a company which is coming out with one initial public offer to the public. By this option, the company can retain certain portion of the applications received through IPO in case of oversubscription.14.What do you mean by equity market?Equity market consists of investment by the public in different kinds of shares issued by the company and by subscribing for the shares, the investors are expressing their willingness to stand as owners of the company. The equity market consists of equity shares, preference shares, rights shares, bonus shares etc.,15.What do you mean by sweat equity?Directors and employees contribute intellectual property rights to the company in the form of providing technical know-how captured by way of research or contributed by way of strategy software developed for the company or adding profit and economic value. To compensate the directors and employees, the concept of sweat equity has come into existence.16.What do you mean by participatory notes?A participatory note is a financial derivative instrument issued against an underlying security and it allows the holder, to get dividend or capital gains earned from the underlying security although some of the holders may not be eligible to trade in stock markets in India.17.What do you mean by book building?Book building is the process to assess the demand for a particular public issue of various prices, based on which the issue is priced and sold to the investors.18.What do you mean by sensex?It is a stock market index provided by Bombay Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for investment or dis-investment to the general public and especially the investors in the stock market. It is based on the market capitalization of top thirty shares earmarked by BSE19.What do you mean by Nifty?It is a stock market index provided by National Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for the investment or dis-investment to the general public and especially the investors who are participating in stock market trading. It is based on the market capitalization of top fifty shares earmarked by NSE20.What do you mean by swap?A swap is a contract that binds two counterparties to exchange the different streams of payments over the specified period at specified rate.

For officers there will be questions on economics, banking, finance and general affairs only (the recent events)Please note that the interview for bank placements are conducted by retired bank officials and more than 95 percent questions will be only on the above subjects and rarely one or two questions will be asked in engineering - electronics, information technology, mechanical engineering etc.,In fact the exact qualification meant for bank job is B. Com.The graduate knows about various types of accounting, economics, finance, management accounting etc and he will be more comfortable than others.Please concentrate on the following subjects:Types of accountsTypes of firmsFinancial statementsBalance sheet, profit and loss account, cash flow statement and funds flow statementVarious balance sheet ratiosVarious financial termsRead the following sample questions:Selected Interview QuestionsCandidate: 00101.Why you are willing to join in a bank?I am willing to join in a bank since I hope that I may be having more opportunities to serve the public. Banks have better career opportunities by means of periodical promotions to higher cadre.02.What do you mean by appraisal of gold loans?Gold loans are granted against the security of gold jewellery namely gold chains, necklaces etc., The jewellery apart from gold contains certain amount of copper and stones. Appraiser is a person well versed in the art of appraising the jewellery and on appraisal of the jewellery, he will be finding out the approximate gold content so that the bank may be able to provide loans against the gold content.03.What are the different kinds of term deposits available in a commercial bank?The different kinds of term deposits available in a commercial bank are – fixed deposit, recurring deposit and reinvestment deposit. In the case of fixed deposit, a fixed amount is accepted for a definite period and interest is paid on quarterly basis. In the case of reinvestment deposit which is similar to fixed deposit, interest is paid on maturity since interest is reinvested. In the case of recurring deposit, monthly instalments are accepted for a fixed period.04.What is the minimum period for which a fixed deposit is accepted and the maximum period for which a fixed deposit is accepted?The minimum period for which fixed deposit is accepted is seven days and the maximum period is ten years.05.Whether a fixed deposit can be accepted for a period more than ten years?In the case of deposits in the names of minors on account of settlement of claims, the deposit can be for more than ten years06.What do you mean by FERA?FERA means foreign exchange regulations act and it came into effect from the year 1973. An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of 1973, it is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.07.What do you mean by ECS?ECS means electronic clearing service and the customer can authorize on periodical basis to make payment of certain utility bills like electricity charges, water charges etc., by debiting his account till such time he submits a revocation letter. Similarly, he can authorize corporate to credit the dividends on shares and interest on debentures as and when due to the credit of his account with the bank.08.What is the minimum amount that can be sent through RTGS?The minimum amount that can be sent through RTGS is Rupees two lakhs and there is no maximum limit09.What is the maximum amount that can be remitted through NEFT?There is no or maximum limit for remittances sent through NEFT10.What is the maximum amount that can be sent abroad by any resident individual?Under liberalized remittance scheme, all resident individuals including minors are allowed to freely remit an amount upto US dollars 250000 (or its equivalent freely convertible foreign currency) per financial year11..What is the name of apex bank which is responsible for the development of agriculture in the country?NABARD is the apex bank which is responsible for the development of agriculture in the country.12.What are the different kinds of schemes available in our country aiming towards poverty alleviation?National old age pension scheme; Jawahar Gramin Samruddi Yojana; National Family Benefit scheme; Mahatma Gandhi National Rural Employment Guarantee Scheme; National Maternal Benefit Schemel Annapurna etc.,13.What do you mean by crossing of any cheque?Writing of two parallel transverse lines drawn on the face of the cheque on top left hand corner with or without any words between the lines is known as crossing and it is for the purpose of making payment of the cheque through an account in the name of the payee or holder.14.What are the different kinds of crossing?Two parallel transverse lines drawn on the face of the cheque on top left hand corner of the cheque with any words or without any words is known as general crossing and the the payment can be made to the account of the payee or holder with any bank. In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.15.What do you mean by CASA?CASA means current and savings and this is applicable to computerized branches linked under core banking solution16.Whose signature is available in Rs. 100/- currency note?The signature of RBI governor is available in Rs. 100 currency note17.What do you know by dividend?Dividend is the return available in the form of money for the investments made by the shareholders in the equity shares and preference shares of any company.18.Bank holidays are declared according to which act?Holidays for banks are declared according to Negotiable Instruments act 1881 by the respective state governments in their states. However, all Sundays, all second and fourth Saturdays have been declared as holidays apart from the holidays permitted for religious and national ceremonies.19.Banks are functioning according to which act?Commercial banks in the country are functioning according to Banking Regulation act 1949 and to some extent as per Reserve Bank of India act 193420.RBI is functioning in the country as per which act?Reserve Bank of India is functioning according to Reserve Bank of India act 1934.Candidate: 00201.What do you mean by a guarantee?Guarantee is an undertaking executed by one person called as guarantor in favour of another person called as beneficiary expressing his intention to make payment in the event of failure of the principal debtor on payment of a debt or failure to perform any contract within the stipulated time or according to the terms of the contract.02.What are the different types of guarantees?The different types of guarantees are financial guarantee, performance guarantee and deferred payment guarantee03.What do you mean by letter of credit?Letter of credit is an undertaking executed by one banker on behalf of its customer to honour bills and documents drawn by another person as per the terms and conditions as mentioned in the letter of credit04.What do you know by packing credit advance?It is the preshipment advance granted by one bank to the exporter for the purpose of procuring raw materials; payment of various duties like customs duty, excise duty; packing charges; shipment charges etc.,05.What do you mean by special crossing?In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.06.What do you know by IFSC code ?IFSC means Indian Financial System Code and this is one alphanumeric code consisting of eleven digits of which the four alphabetic digits represent the name of the bank mentioned in abridged form and the next zero is known as control number and the last six numeric digits represent the branch code of the bank.07.Which is called as mother of deposits?Savings deposit is known as mother of deposits. Normally the first time customers will be advised to open savings deposits with the bank branch before availing any other facility with the bank08.Who is a called as natural guardian?Bother mother and father are known as natural guardian for the purpose of opening accounts in the name of minors represented by the guardian.09.Whether grandfathers and grandmothers can be natural guardians?Grand fathers, grandmothers grand grandfathers or grand grandmothers cannot represent as natural guardians on be behalf of the minors10.Which type of credit facility is available to a farmer for raising crops?For raising crops, the farmers are provided with crop loans, Kisan Credit Cards etc.,11.What do you mean by NULM?National Urban Livelihoods Mission (NULM) was launched by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), Government of India in 24th September, 2013 by replacing the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY).The NULM will focus on organizing urban poor in their strong grassroots level institutions, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment venture by ensuring easy access to credit. The Mission is aimed at providing shelter equipped with essential services to the urban homeless in a phased manner. In addition, the Mission would also address livelihood concerns of the urban street vendors12.What do you mean by Gram Sadak Yojana?The Pradhan Mantri Gram Sadak Yojana called as PMGSY was launched by the Government of India for the purpose of providing connectivity to unconnected habitations as part of a poverty reduction strategy. Government of India is endeavouring to set high and uniform technical and management standards and facilitating policy development and planning at state level in order to ensure sustainable management of the rural roads network.13.What are the salient features of MGNREGA?MGNREGA is known as Mahatma Gandhi National Rural Employment Guarantee act and according to this employment is guaranteed at least one person per household in rural areas. It aims at enhancing the livelihood security of people living in rural areas by guaranteeing hundred days of wage employment during each financial year to a rural household whose adult members volunteers to undertake unskilled manual work14.Which authority is supervising the functions of insurance companies?IRDA – Insurance Regulatory and Development Authority is the authority responsible for supervising the functions of insurance companies in our country15.What is meant by IPO?IPO means initial public offer and this is the first time public offer of equity shares, preference shares or debentures to the public for subscription16.What is meant by ASBA?ASBA means applications supported by blocked amount. Nowadays investors are permitted to remit the amount through ASBA demand drafts drawn in ASBA accounts for the purpose of subscribing shares or debentures through initial public offer and further public offer. When the demand draft is issued, instead of debiting the amount in the account, the amount is blocked till such time the shares or debentures are allotted. On allotment, the entire amount is debited; in the case of partial allotment, the amount is debited equivalent to the value of allotment and in the case of non allotment, the entire amount is allowed for further use. For the intervening period, the depositor earns interest as applicable to the category of deposits.17.What is meant by Performance guarantee issued by any commercial bank?In the case of contracts in favour of governments, the contractors are in a position to provide a bank guarantee by a reputed commercial bank, thereby undertaking to guarantee the government department to compensate the loss on account of failure of performance of the contract by the contractor within the due date or failure to perform the contract as per the terms and conditions of the contract. This is known as performance guarantee.18.What do you mean by packing credit facility issued by any commercial bank?Packing guarantee is known as preshipment advance provided by the commercial bank to the exporter for the purpose of procuring raw materials, packing materials or making payment towards customers duty, excise duty, transportation charges etc.,19.What do you mean by notice money?Notice money is money borrowed for a period of two days and more and upto fourteen days in the call money market.20.Treasury bills are issued by which authority and what are the different kinds of treasury bills available in the country?Treasury bills are issued by central government and state governments for the purpose of mobilizing funds from the public and others towards meeting the cost of various projects. There are three kinds of treasury bills as at present namely – 91 days, 182 days and 364 days. 91 days treasury bills are issued each Friday and the notified amount is Rupees one hundred crores. 182 day treasury bills are issued during alternative Wednesdays which is non reporting week and the notified amount is Rupees 100 crores and 364 days treasury bills are issued on alterntive Wednesdays which is a reporting week and the notified amount is Rupees 500 crores.Candidate: 00301.What do you know by PIN number?PIN number is four digit number expressed in numerical characters. PIN number is used for the transactions done using debit cards and credit cards through automated teller machines and point of sale terminals.02.What do you know by PAN number?PAN number is known as permanent account number. This is used for the purpose of remittance of income tax with income tax department. Tax payers should get one PAN number by sending an application along with relevant documents and by payment of specified sum of money to Income tax department or their agencies. It is ten digit number consisting and alphapetical and numerical characters.03.What are the functions of DICGC?DICGC means Deposit Insurance and Credit Guarantee Corporation and this corporation provides deposit insurance upto an amount of Rupees one lakh per depositor per bank in the event of insolvency of the bank and it also provides small loans guarantee upto certain limits04.What is the role played by ECGC?ECGC provides guarantee support to the exporters of the country in the form of several export guarantees05.Mention the Regional Rural Banks which are functioning in Tamilnadu?The Regional rural banks which are functioning in Tamilnadu are Pandiyan Grama Bank and Pallavan Gramin Bank. Pandiyan Grama Bank has been sponsored by Indian Overseas Bank and pallavan Gramin Bank has been sponsored by Indian bank.06.What do you mean by Mergers and what are the different kinds of mergers?When two independent units merge together to form a single unit, it is known as merger. The mergers can be vertical merger, horizontal merger, reverse merger, consolidation, amalgamation etc.,07.What do you mean by horizontal merger and reverse merger?When the business functions of two units are identical in nature and when the merger takes place between those units, it is known as horizontal merger. New Bank of India merged with Punjab National Bank and both are banking organizations. Industrial Credit and Investment Corporation of India Limited was instrumental in establishing ICICI bank as per LPG norms and subsequently Industrial Credit and Investment Corporation Limited merged with ICICI Bank and when a parent unit gets merged with an ancillary unit, it is known as reverse merger.08.Which are the top two private sector banks in our country?The top private sector banks in our country are HDFC bank limited and ICICI bank limited09.Whether housing loan is a priority sector advance and if so, upto what amount?Housing loans granted are treated as priority sector advances subject to certain conditions. Loans to individuals up to Rupees 28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to Rupees 20 lakh in other centres for purchase/construction of a dwelling unit per family, are eligible to be considered as priority sector provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rupees 35 lakh and Rupees 25 lakh, respectively. Housing loans to banks’ own employees are not eligible for classification under priority sector.10.Whether educational loan is a priority sector advance?Loans to individuals for educational purposes including vocational courses upto Rupees 10 lakh irrespective of the sanctioned amount are eligible for classification under priority sector.11.What do you mean by micro, small and medium enterprises?The classification is based on original investment in plant and machinery: For micro enterprises, upto Rs. 25 lakhs for manufacturing units and Rupees 10 lakhs for service units; For small enterprises, for manufacturing units above Rupees 25 lakhs and upto Rs. 5 crores and for service units above Rupees 10 lakhs and upto Rupees 2 crores; For medium enterprises, for manufacturing units above Rupees 5 crores and upto 10 crores and for service units above Rupees 2 crores and upto Rupees five crores12.What do you mean by KYC and name any two important documents which are obtained as per KYC?KYC means know your customer guidelines and these guidelines were prescribed by RBI for new customers who are willing to open accounts with commercial banks and according to KYC, any new customer who is willing to open accounts with commercial banks should submit the photocopy of anyone of the following namely; driving licence, voter id card, AADHAARA card, passport as address proof and photocopy of anyone of the following namely; driving licence, voter id card, AADHAAR card, passport, pancard as identity proof. KYC is antimony laundering device.13.What is the present repo rate and reverse repo rate?The present repo rate is 6.25% and reverse repo rate is 5.75%14.In the case of MICR code, the middle three digits represent what?MICR code consists of nine numerical digits and the middle three numerical digits represent bank name15.PAN number consists of how many alpha characters?PAN number consists of ten digits. The first three alpha characters are random alphapetical characters between AAA to ZZZ; next one alpha character represents the category of the cardholder; the next one alpha character represents the first character of the name of the cardholder; the next four numerical digits are auto generated sequential numbers and the last one single alpha character is a check digit.16.What do you know by biometric automated teller machines?In the case of automated teller machines, the four digit numerical PIN number is used for performing transactions using debit card and credit card. In the case of biometric automated teller machines, instead of PIN numbers, anyone of the following body parts is used – left hand thumb impression; eye retina and voice recognition. In India, the left hand thumb impression is the accepted mode and these kinds of automated teller machines are known as green label automated teller machines.17.What is the criteria by which a bank is considered as largest bank?For the purpose of ranking, a bank is considered to be largest or smallest taking into consideration the business position of the bank; namely – the total deposits and total advances as at the end of March each year.18.What do you mean by commercial paper?Commercial papers are issued by well rated organizations for mobilizing funds from the public and other corporate. They are issued at a discount and they are freely negotiable by endorsement and delivery. The minimum maturity period is seven days and the corporate should have earned credit rating equivalent to P2 issued by CRISIL19.What do you mean by FCNR?FCNR means foreign currency non resident accounts. Non resident Indians and Persons of Indian origin are eligible to invest in this deposit. It is a term deposit accepted in the currencies – US dollar, Sterling Pound, Euro, Japanese Yen, Canadian dollar and Australian dollar. The minimum period of deposit is one year and the maximum period is five years and the deposit is held in foreign currencies and the interest earned is free from income tax.20.What do you mean by Escheat?He is a person who dies without leaving any legal heirs and in this case, his estate will revert to the state government.Candidate: 00401.What do you mean by money laundering?Using the banking channel for the purpose of bringing illegal money is known as money laundering.02.What do you mean by subprime lending?Mass lending by commercial banks to the borrowers without ascertaining the credit worthiness of the borrowers03.What is meant by LPG and who is responsible for introduction of LPG strategy in our country?LPG means liberalization, privatization and globalization and this was coined by Dr. Manmohan Singh, the then finance minister of our country. The salient highlights of the Liberalisation, Privatisation and Globalisation Policy in India are: Foreign Technology Agreements; Foreign Investment; MRTP Act, 1969 (Amended); Industrial Licensing; Deregulation Beginning of privatization; Opportunities for overseas trade; Steps to regulate inflation; Tax reforms; Abolition of License -Permit Raj04.What do you mean by PURA?PURA means providing urban amenities in rural areas. This concept was coined by Dr. A.P.J. Abdul Kalam, the then president of India.05.What do you know by current ratio?It is one equation between current assets and current liabilities. This ratio provides the liquidity position of the organization. When the ratio is more than one it is known as positive current ratio and the unit is having sufficient working capital and when it is less than one, the unit is found to have more current liabilities than current assets and the liquidity position is found to be very weak.06.What do you know about negotiable instruments act?In India, the negotiable instruments act was passed during 1881 which came into force with effect from March 01, 1882. Negotiable instruments means and include promissory note, bills of exchange and cheque payable to order or bearer. Promissory note, bill of exchange, cheque and demand draft are negotiable instruments.07.What do you know by MICR?MICR means magnetic ink character recognition. MICR code is available in MICR bank at the bottom of the cheque or demand draft. It consists of nine numerical digits of which the first three digits represent the centre/city; the middle three digits represent the bank and the last three digits represent the branch of the bank.08.When it comes to rural lending, which are all considered to be priority sector advances?When it comes to rural lending, the loans granted to the following are considered to be priority sector advances – Loans granted to all agriculture related activities; self help group; Differential rate of interest; Loans to SC/ST beneficiaries; Loans provided to doctors for setting up clinics in rural areas; Loans to dealers in fertilizers and pesticides; loans to dealers of springler irrigation and drip irrigation equipments etc.,09.Who is called as an authorized dealer?Authorised dealer is at present known as authorized person. Authorised person is an individual or organization permitted to deal in foreign exchange business in the country.10.What do you know by financial inclusion?Financial inclusion means the following: Providing formal banking services to poor people in urban and rural areas; Promoting the habit of money savings, insurance, pension-investment among poor people; Helping the people in getting loans at reasonable rates from commercial banks so that they do not become victims to local moneylenders11.What are the important initiatives taken through financial inclusion in the country?The following are the important initiatives taken through financial inclusion in our country: Lead banking scheme; No frill accounts; Basic savings bank deposit accounts; JANDHAN accounts; business correspondent and business facilitator facilities; Swabhiman campaign;12.What do you mean by MCLR?MCLR replaces the base rate system. RBI introduced the system with effect from 01.04.2016 in order to determine the base rate by commercial to improve the efficiency of monetary policy transmission. All rupee loans sanctioned and credit limits renewed with effect from 01.04.2016 to be priced with reference to MCLR and it will be an internal benchmark for the banks. It consists of marginal cost of funds, negative carry on account of CRR, operating costs and tenor premium. The marginal cost of funds consists of two components namely; marginal cost of borrowings and return on networth13.What are the major money market instruments?Certificate of deposits; Commercial paper; Inter Bank participation certificates; iner bank term money; Treasury bills; Bills rediscounting and call/notice money14.What are the differences between NEFT and RTGS?Both are two categories of online remittance facilities through CBS enabled branches of commercial banks. The minimum balance that can be sent through RTGS is Rupees two lakhs whereas in the case of NEFT, there is no such limit. The beneficiary gets his funds at real time and it means instantaneously without any loss of time. In the case of the beneficiary gets his funds in between batches15.Who is deciding the rate of interest for savings deposit accounts?Rate of interest for savings deposits is decided by respective commercial banks only and RBI has permitted full freedom in this connection.16.Who cannot open savings deposit accounts?Proprietorship concerns, partnership firms, limited liability partnership firms, private limited companies and public limited companies are not permitted to open savings accounts17.What is meant by memorandum of association?Memorandum of association is the parent document for any company whether it is a private limited company or private limited company. It contains the details of formation of the company, policies, objectives, registered office and more.18.What is known as power of attorney?Power of attorney is an authorization given by one person called as principal in favour of another person called as an agent authorizing the agent to perform certain activities on behalf of the principal and it can be specific power of attorney or particular power of attorney.19.In which currencies FCNR accounts can be opened in our country?FCNR account can be opened in the following currencies namely; US dollars, Sterling Pounds; Euro; Japanese Yen; Australian dollars and Canadian dollars.20.What are the differences between NRE and FCNR?NRE and FCNR accounts are opened by non resident Indians and Persons of Indian Origin in India. NRE accounts are to be opened in rupees whereas FCNR is opened in foreign currencies. NRE accounts can be opened in the form of savings account, current account, reinvestment deposit and fixed deposit whereas, FCNR account is permitted to be opened as fixed deposit or reinvestment deposit. NRE term deposits can be opened for a minimum period of seven days and maximum period of ten years. FCNR accounts can be opened for a minimum period of one year and maximum period of five years.Candidate: 00501.What do you mean by masala bonds?Masala bonds are the bonds issued for rupee denominated borrowings by Indian companies in overseas markets02.What do you mean by secondary market in our country?Secondary market pertains to capital market and it is also known as stock exchange or old issues market. Shares, debentures and bonds can be bought and sold from the stock exchange through registered brokers.03.What do you mean by fund based limits and non fund based limits?The loans provided to the borrowers in the form of term loans, overdrafts, cash credits and bills discounting limits are known as fund based limits since funds are released to the borrowers. Guarantees and letter of credits are non fund based limits since no funds are provided for the time being since they are contingent liabilities.04.What do you mean by off balance sheet items?Guarantees, letter of credits and bills sent for collection for which proceeds are yet to be realized are known as off balance sheet items05.What do you mean by closed ended scheme?This is one form of mutual fund scheme. Like initial public offer, the scheme is open for a certain period only and after which the public cannot invest their amount in the units under this scheme.06.What do you mean by open ended scheme?This is one mutual fund scheme and the units under scheme can be purchased and sold at any time07.What do you mean by overdraft facility granted by a bank?Overdraft is a facility granted by the banks towards meeting the working capital requirements of a borrower. This is provided by means of credit limit over and above the current account balance and the borrower has to pay the interest as and when due.08.What do you mean by collateral security?Collateral security is an additional security provided by the borrower in addition to the primary security. For example, in the case of vehicle loan, the car purchased out of loan is known as the prime security and the insurance policy obtained by the bank from the borrower for the sanction of this loan is known as collateral security.09.In regard to educating a customer, what are the different kinds of information boards displayed in a bank branch?The following boards are available in the bank branches – Working hours and business hours; Interest rates on various deposits; Interest rates for loans; Service charges; Time norms for various services; Details of schemes available in the branch10.Who is the present RBI Governor?The present governor of RBI is Shri Urjit Patel and he is functioning as the governor of RBI since 04th September, 201611.What do you mean by unclaimed deposits?The deposits which are not in operation for more than ten years are known as unclaimed deposits. For the purpose of this classification, the customer induced transactions are only taken into account.12.How many regional centres are available for RBI in the country?Reserve Bank of India has four regional centres at the following places – Chennai, Kolkatta, New Delhi and Mumbai.13.What do you mean by white label automated teller machines?The automated teller machines which are maintained and managed by non bank entities are known as white label automated teller machines. In our country TATA Indicash and Muthoot finance are having such machines installed at various centres.14.What are the advantages of CTS?CTS means cheque truncation scheme. This is used for clearing purpose. Normally commercial banks used to send the physical cheques through their15.What do you mean by certificate of deposits?Certificate of deposits are issued by scheduled commercial banks (except Regional Rural Banks) and all financial institutions within their umbrella limits. Individuals, corporate, companies, trusts, funds and associations can invest in certificate of deposits and they are issued for a minimum period of seven days and maximum period of twelve months in the case of commercial banks and in the case of financial institutions the minimum period is one year and maximum three years, Minimum amount for investment is Rupees one lakh and in multiples of Rupees one lakh.16.RBI is called by which names – mention four names?RBI is called by the following names – banker to banker; lender of the last resort; custodian of banks; banker to government;17.What do you mean by ways and means advances?Ways and means advances were introduced as per an agreement between Reserve Bank of India and Government and they are temporary overdraft facilities provided by RBI to central government and state governments and the purpose is to bridge the time interval of mismatch the government expenditure and receipts. The duration of the limit is ten days for central government and 14 days for state government departments.18.Who is banking ombudsman and by whom he is appointed?Banking Ombudsman is an arbitrary authority who resolves the complaints received from the customers of commercial banks in regard to bank related issues.19.What do you mean by EEFC account?Exchange Earner’s Foreign Currency account is an account maintained in an account maintained in foreign currency with an authorized dealer ; i/e/ a bank dealing in foreign exchange. Professionals, exporters, trainers etc., who are in receipt of foreign exchange for the services extended by them in foreign countries can invest the amount in EEFC account and the account will be in the form of current account and no interest is paid for the balance held in EEFC account.20.What do you know by NBFC?NBFC means non banking finance companies. It is a company registered under Indian Companies act 1956 and presently 2013 engaged in the business of providing loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire purchase, insurance business, chit fund business etc.,Candidate: 00601.What do you mean by arbitrage?It is the process of purchase of one security from one market and selling the same security for earning a profit at the same time at another market.02.What do you mean by Bonus shares?It is the free allotment of shares in certain proportion to the existing shares held by the shareholders of a company and this is a means of providing reward to the investors for their contribution to the growth of the organization by capital investment03.What do you mean by Bull?It is a term given to a speculator on stock exchange who buys the securities in expectation of a rise in the prices. The market is called as bullish when there is a domination of buyers over the sellers04.What is known as dematerialization?Dematerialisation is the process by which shares in the physical form are cancelled and they are issued in electronic form. The certificates are known as demat shares. This process eliminates the time and manpower involved in transfer and registration of shares from the seller to the buyer05.What do you mean by moorat trading?It is the auspicious trading on a special day, say Diwali during some specified hours.06.What do you mean by rights issue?It is the issue of new shares to the existing shareholders in a fixed ratio to those already held at a price which is generally below the market price of the old shares.07.What do you mean by futures?It is a standard contract issued on an agreement to buy or sell an asset at a certain price at a certain time in future. It is an obligation on the buyer to purchase the underlying instrument and the seller to sell it.08.What do you mean by forward?The forward is a contract that is traded off the stock exchange and it is self regulatory and has certain flexibility unlike future which are traded at stock exchange only and it do not have flexibility of quantity and quality of commodity to be delivered and these are regulated by Securities Exchange Board of India, Reserve Bank of India or other agencies.09.What do you mean by factoring?Factoring is an arrangement in which short term domestic receivables on sale of goods or services are sold to a company called as factor and this scheme came into existence during 1991 based on the report of Kalyanasundaram Committee10.What do you mean by forfeiting?Forfaiting represents the purchase of obligations, which fall due at some future date and arise from the delivery of goods in export transactions, without recourse to the previous holder of the obligations.11.What do you mean by leasing?A lease is a contract where the owner of the assets transfers the right to another person to use the assets against the payment of fixed lease rentals. In the case of one lease contract, there are two parties namely – the lessor or the owner and the lessee or user. The lessor remains owner and the leased property remains with the possession of the lessee.12.What do you mean by debt market?It is a market wherein the debt instruments are issued to the public by any company for investment and such debt instrument bears a fixed interest rate payable half yearly on specific dates and principal amount repayable on particular date on redemption. Debentures are normally secured/charged against the asset of the company in favour of debenture holder. The following are some debt instruments – debenture; bond; zero coupon bond; convertible bond; security receipts etc.,13.What do you mean by greenshoe option?It is an option provided by Securities and Exchange Board of India to a company which is coming out with one initial public offer to the public. By this option, the company can retain certain portion of the applications received through IPO in case of oversubscription.14.What do you mean by equity market?Equity market consists of investment by the public in different kinds of shares issued by the company and by subscribing for the shares, the investors are expressing their willingness to stand as owners of the company. The equity market consists of equity shares, preference shares, rights shares, bonus shares etc.,15.What do you mean by sweat equity?Directors and employees contribute intellectual property rights to the company in the form of providing technical know-how captured by way of research or contributed by way of strategy software developed for the company or adding profit and economic value. To compensate the directors and employees, the concept of sweat equity has come into existence.16.What do you mean by participatory notes?A participatory note is a financial derivative instrument issued against an underlying security and it allows the holder, to get dividend or capital gains earned from the underlying security although some of the holders may not be eligible to trade in stock markets in India.17.What do you mean by book building?Book building is the process to assess the demand for a particular public issue of various prices, based on which the issue is priced and sold to the investors.18.What do you mean by sensex?It is a stock market index provided by Bombay Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for investment or dis-investment to the general public and especially the investors in the stock market. It is based on the market capitalization of top thirty shares earmarked by BSE19.What do you mean by Nifty?It is a stock market index provided by National Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for the investment or dis-investment to the general public and especially the investors who are participating in stock market trading. It is based on the market capitalization of top fifty shares earmarked by NSE20.What do you mean by swap?A swap is a contract that binds two counterparties to exchange the different streams of payments over the specified period at specified rate.

Students who are looking to score good in ACC 290 can visit the website http://www.acc290genius.com which helps you to score well in your exams.ACC 290 Week 1 Practice Connect Practice AssignmentComplete the Week 1 Practice in Connect.Note: You have unlimited attempts available to complete practice assignments1On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings.TRANSACTIONS1.The owner invested $100,000 in cash to begin the business.2.Paid $20,250 in cash for the purchase of equipment.3.Purchased additional equipment for $15,200 on credit.4.Paid $12,500 in cash to creditors.5.The owner made an additional investment of $25,000 in cash.6.Performed services for $9,750 in cash.7.Performed services for $7,800 on account.8.Paid $6,000 for rent expense.9.Received $5,500 in cash from credit clients.10.Paid $7,550 in cash for office supplies.11.The owner withdrew $12,000 in cash for personal expenses.Record in equation form the changes that occur in assets, liabilities, and owner’s equity for the above transactions.Analyze:What is the ending balance of cash after all transactions have been recorded?2On December 1, Kate Holmes opened a speech and hearing clinic. During December, her firm had the following transactions involving revenue and expenses.Paid $3,100 for advertising.Provided services for $2,800 in cash.Paid $800 for telephone service.Paid salaries of $2,600 to employees.Provided services for $3,000 on credit.Paid $450 for office cleaning service.Did the firm earn a net income or incur a net loss for the period? What was the amount?3At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.Prepare an income statement for the month of September 2019.4The fundamental accounting equations for several businesses follow. Supply the missing amounts.5At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.Required:Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.6Taylor Equipment Repair Service is owned by Jason Taylor.Use the above figures to prepare a balance sheet dated February 28, 2019.Analyze:What is the net worth, or owner’s equity, at February 28, 2019, for Taylor Equipment Repair Service?ACC 290 Week 1 Apply Connect AssignmentComplete the Week 1 Assignment in Connect.Note: You have only 1 attempt available to complete assignments.1Harold Joseph is a painting contractor who specializes in painting commercial buildings. At the beginning of June, his firm’s financial records showed the following assets, liabilities, and owner’s equity.Cash $ 60,200Accounts Receivable 15,800Office Furniture 35,000Auto 22,700Accounts Payable 10,400Harold Joseph, Capital 90,700Revenue 56,200Expenses 23,600TRANSACTIONS1.Performed services for $6,600 on credit.2.Paid $1,620 in cash for new office chairs.3.Received $10,400 in cash from credit clients.4.Paid $800 in cash for telephone service.5.Sent a check for $2,900 in partial payment of the amount due creditors.6.Paid salaries of $8,900 in cash.7.Sent a check for $1,040 to pay electric bill.8.Performed services for $9,700 in cash.9.Paid $2,270 in cash for auto repairs.10.Performed services for $11,700 on account.Enter the above transactions in to the following accounting equations.Analyze:What is the amount of total assets after all transactions have been recorded?2The following equation shows the transactions of Cotton Cleaning Service during May. The business is owned by Taylor Cotton.Required:Analyze each transaction carefully. Prepare an income statement and a statement of owner’s equity for the month. Prepare a balance sheet for May 31, 2019.ACC 290 Week 2 Practice Connect Practice AssignmentACC 290 Week 2 Practice: Connect Practice AssignmentComplete the Week 2 Practice in Connect.Note: You have unlimited attempts available to complete practice assignments1The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals. The entries for the first transaction are labeled with the letter (a), the entries for the second transaction with the letter (b), and so on.Cash(a) 95,000 (b) 23,000(d) 15,000 (e) 350(g) 1,500 (h) 5,500(i) 2,500Equipment(c) 40,000Accounts Receivable(f) 5,000 (g) 1,500Accounts Payable(c) 40,000Supplies(b) 23,000Wade Wilson, Capital(a) 95,000Fees Income(d) 15,000(f) 5,000Telephone Expense(e) 350Wade Wilson, Drawing(i) 2,500Salaries Expense(h) 5,500Determine the balance of each account.2Derrick Wells decided to start a dental practice. The first five transactions for the business follow.Derrick invested $45,000 cash in the business.Paid $15,000 in cash for equipment.Performed services for cash amounting to $4,500.Paid $1,900 in cash for advertising expense.Paid $1,500 in cash for supplies.(1) Select which two accounts are affected in each of the above transactions.(2&3) Post the above transactions into the appropriate T accounts.3The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.Transactions:Guttery invested $80,000 in cash to start the business.Paid $3,000 for the current month’s rent.Bought office furniture for $8,360 in cash.Performed services for $4,100 in cash.Paid $625 for the monthly telephone bill.Performed services for $7,000 on credit.Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.Received $3,500 from credit clients.Paid $2,000 in cash for office cleaning services for the month.Purchased additional office chairs for $2,900; received credit terms of 30 days.Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.Issued a check for $4,700 to pay salaries.Performed services for $7,250 in cash.Performed services for $8,000 on credit.Collected $4,000 on accounts receivable from charge customers.Issued a check for $1,450 in partial payment of the amount owed for office chairs.Paid $350 to a duplicating company for photocopy work performed during the month.Paid $610 for the monthly electric bill.Guttery withdrew $4,500 in cash for personal expenses.Post the above transactions into the appropriate T accounts.Analyze:What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.4The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local Housing rentals.Cash(a) 95,000 (b) 23,000(d) 15,000 (e) 350(g) 1,500 (h) 5,500(i) 2,500Equipment(c) 40,000Accounts Receivable(f) 5,000 (g) 1,500Accounts Payable(c) 40,000Supplies(b) 23,000Wade Wilson, Capital(a) 95,000Fees Income(d) 15,000(f) 5,000Telephone Expense(e) 350Wade Wilson, Drawing(i) 2,500Salaries Expense(h) 5,500Required:Prepare a statement of owner’s equity and a balance sheet for Residential Relocators as of December 31, 2019.5The following T accounts show transactions that were recorded by Residential Relocators, a firm that specializes in local housing rentals.Cash(a) 95,000 (b) 23,000(d) 15,000 (e) 350(g) 1,500 (h) 5,500(i) 2,500Equipment(c) 40,000Accounts Receivable(f) 5,000 (g) 1,500Accounts Payable(c) 40,000Supplies(b) 23,000Wade Wilson, Capital(a) 95,000Fees Income(d) 15,000(f) 5,000Telephone Expense(e) 350Wade Wilson, Drawing(i) 2,500Salaries Expense(h) 5,500Required:Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.6The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019.Transactions:Guttery invested $80,000 in cash to start the business.Paid $3,000 for the current month’s rent.Bought office furniture for $8,360 in cash.Performed services for $4,100 in cash.Paid $625 for the monthly telephone bill.Performed services for $7,000 on credit.Purchased a computer and copier for $19,000; paid $6,500 in cash immediately with the balance due in 30 days.Received $3,500 from credit clients.Paid $2,000 in cash for office cleaning services for the month.Purchased additional office chairs for $2,900; received credit terms of 30 days.Purchased office equipment for $20,000 and paid half of this amount in cash immediately; the balance is due in 30 days.Issued a check for $4,700 to pay salaries.Performed services for $7,250 in cash.Performed services for $8,000 on credit.Collected $4,000 on accounts receivable from charge customers.Issued a check for $1,450 in partial payment of the amount owed for office chairs.Paid $350 to a duplicating company for photocopy work performed during the month.Paid $610 for the monthly electric bill.Guttery withdrew $4,500 in cash for personal expenses.Required:Prepare a trial balance, an income statement, a statement of owner’s equity, and a balance sheet. Assume that the transactions took place during the month ended June 30, 2019. Determine the account balances before you start work on the financial statements.Analyze:What is the change in owner’s equity for the month of June?ACC 290 Week 2 Apply Connect AssignmentACC 290 Week 2 Apply Connect AssignmentComplete the Week 2 Assignment in Connect.Note: You have only 1 attempt available to complete assignments1The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transactions for Randy Guttery, Landscape Consultant took place during the month ended June 30, 2019. The following transactions are for Randy Guttery, Landscape Consultant.Transactions:Guttery invested $156,000 in cash to start the business.Paid $5,600 for the current month’s rent.Bought office furniture for $16,320 in cash.Performed services for $7,800 in cash.Paid $1,210 for the monthly telephone bill.Performed services for $13,600 on credit.Purchased a computer and copier for $37,200; paid $12,600 in cash immediately with the balance due in 30 days.Received $6,800 from credit clients.Paid $3,600 in cash for office cleaning services for the month.Purchased additional office chairs for $5,400; received credit terms of 30 days.Purchased office equipment for $36,000 and paid half of this amount in cash immediately; the balance is due in 30 days.Issued a check for $9,000 to pay salaries.Performed services for $14,100 in cash.Performed services for $15,600 on credit.Collected $7,600 on accounts receivable from charge customers.Issued a check for $2,700 in partial payment of the amount owed for office chairs.Paid $660 to a duplicating company for photocopy work performed during the month.Paid $1,180 for the monthly electric bill.Guttery withdrew $8,600 in cash for personal expenses.Post the above transactions into the appropriate T accounts.Analyze:What liabilities does the business have after all transactions have been recorded? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.2The following occurred during June at Hicks Family Counseling.Post the following transactions into the appropriate T accounts.Transactions:Purchased office supplies for $1,900 in cash.Delivered monthly statements, collected fee income of $26,500.Paid the current month’s office rent of $3,900.Completed professional counseling, billed client for $4,100.Client paid fee of $2,100 for weekly counseling, previously billed.Paid office salaries of $3,500.Paid telephone bill of $470.Billed client for $3,100 fee for preparing a counseling evaluation.Purchased office supplies of $990 on account.Paid office salaries of $3,500.Collected $3,100 from client who was billed.Clients paid a total of $9,200 cash in fees.Analyze:How much cash did the business spend during the month? T accounts normally do not have any minus signs. Use minus signs in this problem to demonstrate your understanding of decreases to account balances.ACC 290 Week 3 Practice Connect Practice AssignmentACC 290 Week 3 Practice Connect Practice AssignmentComplete the Week3 Practice in Connect.Note: You have unlimited attempts available to complete practice assignments1On October 1, 2019, Helen Kennedy opened an advertising agency.DATE TRANSACTIONSOct. 1 Helen Kennedy invested $70,000 cash in the business.2 Paid October office rent of $4,000; issued Check 1001.5 Purchased desks and other office furniture for $18,000 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.6 Issued Check 1002 for $4,100 to purchase art equipment.7 Purchased supplies for $1,670; paid with Check 1003.10 Issued Check 1004 for $800 for office cleaning service.12 Performed services for $4,200 in cash and $1,800 on credit. (Use a compound entry.)15 Returned damaged supplies for a cash refund of $300.18 Purchased a computer for $3,000 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,750 down payment, with the balance payable in 30 days. (Use one compound entry.)20 Issued Check 1006 for $9,500 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.26 Performed services for $4,800 on credit.27 Paid $375 for monthly telephone bill; issued Check 1007.30 Received $4,200 in cash from credit customers.30 Mailed Check 1008 to pay the monthly utility bill of $1,080.30 Issued Checks 1009–1011 for $9,000 for salaries.Required:Journalize the above transactions.Post the above transactions to the ledger accounts.Analyze:What is the balance of account 202 in the general ledger?2The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.DATE TRANSACTIONSSept. 1 Issued Check 1169 for $2,000 to pay the September rent.5 Performed services for $4,000 in cash.6 Performed services for $2,950 on credit.10 Paid $900 for monthly telephone bill; issued Check 1170.11 Paid for equipment repairs of $1,050 with Check 1171.12 Received $1,500 on account from credit clients.15 Issued Checks 1172–1177 for $5,200 for salaries.18 Issued Check 1178 for $2,700 to purchase supplies.19 Purchased new tennis rackets for $3,250 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.20 Issued Check 1179 for $3,820 to purchase new nets. (Equip.)21 Received $500 on account from credit clients.21 Returned a damaged net and received a cash refund of $570.22 Performed services for $3,480 in cash.23 Performed services for $5,050 on credit.26 Issued Check 1180 for $620 to purchase supplies.28 Paid the monthly electric bill of $2,500 with Check 1181.30 Issued Checks 1182–1187 for $5,200 for salaries.30 Issued Check 1188 for $5,000 cash to Ellis Carter for personal expenses.Required:Record each of the above transactions in the general journal.Analyze:If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?3Selected activity of Mason Consulting Services follow.DATE TRANSACTIONS2019Sept. 1 Zack Mason invested $30,000 in cash to start the firm.4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.20 Purchased supplies for $260; paid immediately with Check 1002.23 Returned damaged supplies for a cash refund of $85.30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.30 Withdrew $1,500 in cash for personal expenses.30 Issued Check 1004 for $3,500 to pay the rent for October.30 Performed services for $7,325 in cash.30 Paid $220 for monthly telephone bill, Check 1005.Post the above transactions into the appropriate Ledger accounts.4The following transactions took place at the Cook Employment Agency during November 2019.DATE TRANSACTIONSNov. 5 Performed services for Job Search, Inc., for $20,000; received $9,500 in cash and the client promised to pay the balance in 60 days.18 Purchased a graphing calculator for $450 and some supplies for $600 from Office Supply; issued Check 1008 for the total.23 Received Invoice 1602 for $2,500 from Automotive Technicians Repair for repairs to the firm’s automobile; issued Check 1009 for half the amount and arranged to pay the other half in 30 days.Prepare journal entries for the above transactions.5Selected activity of the Ray Shipping Service follow.TRANSACTIONSGave a cash refund of $750 to a customer because of a lost package. (The customer had previously paid in cash.)Sent a check for $1,050 to the utility company to pay the monthly bill.Provided services for $7,800 on credit.Purchased new equipment for $4,600 and paid for it immediately by check.Issued a check for $3,500 to pay a creditor on account.Performed services for $15,250 in cash.Collected $6,250 from credit customers.The owner made an additional investment of $25,000 in cash.Purchased supplies for $3,250 on credit.Issued a check for $3,750 to pay the monthly rent.Analyze the above transactions and record a journal entry for each transaction.6Selected activity of Mason Consulting Services follow.DATE TRANSACTIONS2019Sept. 1 Zack Mason invested $30,000 in cash to start the firm.4 Purchased office equipment for $3,250 on credit from Den, Inc.; received Invoice 9823, payable in 30 days.16 Purchased an automobile that will be used to visit clients; issued Check 1001 for $15,000 in full payment.20 Purchased supplies for $260; paid immediately with Check 1002.23 Returned damaged supplies for a cash refund of $85.30 Issued Check 1003 for $2,100 to Den, Inc., as payment on account for Invoice 9823.30 Withdrew $1,500 in cash for personal expenses.30 Issued Check 1004 for $3,500 to pay the rent for October.30 Performed services for $7,325 in cash.30 Paid $220 for monthly telephone bill, Check 1005.Prepare journal entries for the transactions incurred during September of 2019.ACC 290 Week 3 Apply Connect AssignmentACC 290 Week 3 Apply Connect AssignmentComplete the Week 3 Assignment in Connect.Note: You have only 1 attempt available to complete assignments1On October 1, 2019, Helen Kennedy opened an advertising agency.DATETRANSACTIONSOct. 1Helen Kennedy invested $61,000 cash in the business.2Paid October office rent of $3,050; issued Check 1001.5Purchased desks and other office furniture for $13,900 from Office Furniture Mart, Inc.; received Invoice 6704 payable in 60 days.6Issued Check 1002 for $3,250 to purchase art equipment.7Purchased supplies for $1,600; paid with Check 1003.10Issued Check 1004 for $490 for office cleaning service.12Performed services for $4,150 in cash and $1,950 on credit. (Use a compound entry.)15Returned damaged supplies for a cash refund of $290.18Purchased a computer for $3,050 from Office Furniture Mart, Inc., Invoice 7108; issued Check 1005 for a $1,775 down payment, with the balance payable in 30 days. (Use one compound entry.)20Issued Check 1006 for $6,950 to Office Furniture Mart, Inc., as payment on account for Invoice 6704.26Performed services for $4,450 on credit.27Paid $270 for monthly telephone bill; issued Check 1007.30Received $3,750 in cash from credit customers.30Mailed Check 1008 to pay the monthly utility bill of $345.30Issued Checks 1009–1011 for $8,050 for salaries.Required:1. Journalize the above transactions.2. Post the above transactions to the ledger accounts.Analyze:What is the balance of account 202 in the general ledger?2The transactions that follow took place at the Desoto Recreation and Sports Arena during September 2019. This firm has indoor courts where customers can play tennis for a fee. It also rents equipment and offers tennis lessons.DATETRANSACTIONSSept.1Issued Check 1169 for $1,200 to pay the September rent.5Performed services for $3,200 in cash.6Performed services for $2,050 on credit.10Paid $560 for monthly telephone bill; issued Check 1170.11Paid for equipment repairs of $800 with Check 1171.12Received $3,000 on account from credit clients.15Issued Checks 1172–1177 for $4,000 for salaries.18Issued Check 1178 for $1,800 to purchase supplies.19Purchased new tennis rackets for $2,050 on credit from The Tennis Supply Shop; received Invoice 3108, payable in 30 days.20Issued Check 1179 for $2,720 to purchase new nets. (Equip.)21Received $910 on account from credit clients.21Returned a damaged net and received a cash refund of $410.22Performed services for $3,400 in cash.23Performed services for $4,990 on credit.26Issued Check 1180 for $600 to purchase supplies.28Paid the monthly electric bill of $2,390 with Check 1181.30Issued Checks 1182–1187 for $4,000 for salaries.30Issued Check 1188 for $4,000 cash to Ellis Carter for personal expenses.Required:Record each of the above transactions in the general journal.Analyze:If the company paid a bill for supplies on October 1, what check number would be included in the journal entry description?ACC 290 Week 4 Practice Connect Practice AssignmentComplete the Week 4 Practice in Connect.Note: You have unlimited attempts available to complete practice assignments.attempt 11On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a seven-month period. The $8,400 was debited to thePrepaid RentOn June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation.2The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below.CANTU CORPORATIONWorksheetMonth Ended December 31, 2019Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance SheetAccount Name Debit Credit Debit Credit Debit Credit Debit Credit Debit CreditCash 39,100 39,100 39,100Accounts Receivable 6,500 6,500 6,500Supplies 6,050 3,500 6,050 2,550Prepaid Advertising 10,200 1,700 10,200 8,500Equipment 42,500 42,500 42,500Accumulated Depreciation—Equipment 850 850 850Accounts Payable 6,500 6,500 6,500Selena Cantu, Capital 54,500 54,500 54,500Selena Cantu, Drawing 4,100 4,100 4,100Fees Income 57,750 57,750 57,750Supplies Expense 3,500 3,500 3,500Advertising Expense 1,700 1,700 1,700Depreciation Expense-Equipment 850 850 850Salaries Expense 8,900 8,900 8,900Utilities Expense 1,400 1,400 1,400Totals 118,750 118,750 6,050 6,050 119,600 119,600 16,350 57,750 103,250 61,850Net Income 41,400 41,40057,750 57,750 103,250 103,250Required:Prepare an income statement.Prepare a statement of owner’s equity. The owner made no additional investments during the month.Prepare a balance sheet.Analyze:If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?3Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800.Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?4Desoto Company must make three adjusting entries on December 31, 2019.Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount).Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaidInsurancefor this amount.Depreciation expense for equipment, $2,900.Required:Prepare the journal entries for these adjustments and post the entries to the general ledger accounts5The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.Appropriate adjustments have been made for the following items:Supplies used during the month, $2,900.Expired rent for the month, $3,500.Depreciation expense for the month, $950.UNIVERSITY BOOK STOREAdjusted Trial BalanceNovember 30, 2019Account Name Debit CreditCash $ 23,075Accounts Receivable 3,812Supplies 4,600Prepaid Rent 21,000Equipment 27,500Accumulated Depreciation-Equipment $ 950Accounts Payable 9,000Ruby Darbandi, Capital 41,837Ruby Darbandi, Drawing 4,000Fees Income 48,550Depreciation Expense-Equipment 950Rent Expense 3,500Salaries Expense 8,500Supplies Expense 2,900Utilities Expense 500Totals $ 100,337 $ 100,337Required:Record the adjusting entries in the Adjustments columns.Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.Analyze:What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?6On January 31, 2019, the general ledger of Palmer Company showed the following account balances.ACCOUNTSCash 31,500Accounts Receivable 11,250Supplies 4,500Prepaid Insurance 4,100Equipment 45,750Accum. Depr.—Equip. 0Accounts Payable 8,350Sadie Palmer, Capital 40,975Fees Income 58,500Depreciation Exp.—Equip. 0Insurance Expense 0Rent Expense 5,300Salaries Expense 5,425Supplies Expense 0Additional information:Supplies used during January totaled $2,850.Expired insurance totaled $1,025.Depreciation expense for the month was $925.Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.attempt 21On January 31, 2019, the general ledger of Palmer Company showed the following account balances.ACCOUNTSCash 31,500Accounts Receivable 11,250Supplies 4,500Prepaid Insurance 4,100Equipment 45,750Accum. Depr.—Equip. 0Accounts Payable 8,350Sadie Palmer, Capital 40,975Fees Income 58,500Depreciation Exp.—Equip. 0Insurance Expense 0Rent Expense 5,300Salaries Expense 5,425Supplies Expense 0Additional information:Supplies used during January totaled $2,850.Expired insurance totaled $1,025.Depreciation expense for the month was $925.Complete the worksheet through the Adjusted Trial Balance section. Assume that every account has the normal debit or credit balance. The worksheet covers the month of January.2Desoto Company must make three adjusting entries on December 31, 2019.Supplies used, $5,500 (supplies totaling $9,000 were purchased on December 1, 2019, and debited to the Suppliesaccount).Expired insurance, $4,100; on December 1, 2019, the firm paid $24,600 for six months’ insurance coverage in advance and debitedPrepaidInsurancefor this amount.Depreciation expense for equipment, $2,900.Required:Prepare the journal entries for these adjustments and post the entries to the general ledger accounts3Assume that a firm reports net income of $45,000 prior to making adjusting entries for the following items: expired rent, $3,500; depreciation expense, $4,100; and supplies used, $1,800.Assume that the required adjusting entries have not been made. What effect do these errors have on the reported net income?4On June 1, 2019, Cain Company, a new firm, paid $8,400 rent in advance for a seven-month period. The $8,400 was debited to thePrepaid RentOn June 1, 2019, the firm bought supplies for $10,250. The $10,250 was debited to the Supplies An inventory of supplies at the end of June showed that items costing $5,960 were on hand.On June 1, 2019, the firm bought equipment costing $72,900. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation.Prepare end-of-June adjusting entries for Cain Company.5The completed worksheet for Cantu Corporation as of December 31, 2019, after the company had completed the first month of operation, appears below.CANTU CORPORATIONWorksheetMonth Ended December 31, 2019Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance SheetAccount Name Debit Credit Debit Credit Debit Credit Debit Credit Debit CreditCash 39,100 39,100 39,100Accounts Receivable 6,500 6,500 6,500Supplies 6,050 3,500 6,050 2,550Prepaid Advertising 10,200 1,700 10,200 8,500Equipment 42,500 42,500 42,500Accumulated Depreciation—Equipment 850 850 850Accounts Payable 6,500 6,500 6,500Selena Cantu, Capital 54,500 54,500 54,500Selena Cantu, Drawing 4,100 4,100 4,100Fees Income 57,750 57,750 57,750Supplies Expense 3,500 3,500 3,500Advertising Expense 1,700 1,700 1,700Depreciation Expense-Equipment 850 850 850Salaries Expense 8,900 8,900 8,900Utilities Expense 1,400 1,400 1,400Totals 118,750 118,750 6,050 6,050 119,600 119,600 16,350 57,750 103,250 61,850Net Income 41,400 41,40057,750 57,750 103,250 103,250Required:Prepare an income statement.Prepare a statement of owner’s equity. The owner made no additional investments during the month.Prepare a balance sheet.Analyze:If the adjustment to Prepaid Advertising had been $3,400 instead of $1,700, what net income would have resulted?6The adjusted trial balance of University Book Store as of November 30, 2019, after the firm’s first month of operations, appears below.Appropriate adjustments have been made for the following items:Supplies used during the month, $2,900.Expired rent for the month, $3,500.Depreciation expense for the month, $950.UNIVERSITY BOOK STOREAdjusted Trial BalanceNovember 30, 2019Account Name Debit CreditCash $ 23,075Accounts Receivable 3,812Supplies 4,600Prepaid Rent 21,000Equipment 27,500Accumulated Depreciation-Equipment $ 950Accounts Payable 9,000Ruby Darbandi, Capital 41,837Ruby Darbandi, Drawing 4,000Fees Income 48,550Depreciation Expense-Equipment 950Rent Expense 3,500Salaries Expense 8,500Supplies Expense 2,900Utilities Expense 500Totals $ 100,337 $ 100,337Required:Record the adjusting entries in the Adjustments columns.Complete the Trial Balance columns of the worksheet prior to making the adjusting entries.Analyze:What was the balance of Prepaid Rent prior to the adjusting entry for expired rent?ACC 290 Week 4 Apply Connect AssignmentACC 290 Week 4 Apply Connect AssignmentComplete the Week 4 Assignment in Connect.Note: You have only 1 attempt available to complete assignments1Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below.End-of-the-month adjustments must account for the following items:a. Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,500.b. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.c. Rent of $2,000 expired during the month.d. Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.Required:1. Complete the worksheet for the month.2. Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month.3. Journalize and post the adjusting entries.AnalyzeIf the adjusting entries had not been made for the month, would net income be overstated or understated?2The trial balance of Neal Company as of January 31, 2019, after the company completed the first month of operations, is shown in the partial worksheet below.Required:2. Complete the worksheet by making the following adjustments: supplies on hand at the end of the month, $7,000; expired insurance, $6,900; depreciation expense for the period, $3,000.Analyze:How does the insurance adjustment affect Prepaid Insurance?ACC 290 Week 5 Practice Connect Practice AssignmentComplete the Week 5 Practice in Connect.Note: You have unlimited attempts available to complete practice assignments.attempt 11Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:REVENUE AND EXPENSE ACCOUNTS401 Fees Income $ 200,000 Cr.511 Depr. Expense—Office Equipment 9,160 Dr.514 Rent Expense 26,000 Dr.517 Salaries Expense 99,000 Dr.520 Supplies Expense 4,680 Dr.523 Telephone Expense 2,700 Dr.526 Travel Expense 20,780 Dr.529 Utilities Expense 2,500 Dr.DRAWING ACCOUNT302 Gloria Johnson, Drawing 22,000 Dr.Required:Record the adjusting entries in the general journal (transactions 1-3).Record the closing entries in the general journal (transactions 4-7).2A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.Required:Complete the worksheet.Record the adjusting entries in the general journal (transactions 1-3).Record the closing entries in the general journal (transactions 4-7).Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.Prepare a post-closing trial balance.Analyze:What total debits were posted to the general ledger to complete all closing entries for the month of December?3On December 31, 2019, the ledger of Lopez Company contained the following account balances:Cash $ 66,000 Maria Lopez, Drawing $ 52,000Accounts Receivable 5,800 Fees Income 107,500Supplies 4,200 Depreciation Expense 5,500Equipment 52,000 Salaries Expense 34,000Accumulated Depreciation 5,000 Supplies Expense 6,000Accounts Payable 6,000 Telephone Expense 5,200Maria Lopez, Capital 121,500 Utilities Expense 9,3004The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:ACCOUNT NO. ACCOUNT BALANCE101 Cash $ 40,000111 Accounts Receivable 29,910121 Supplies 5,300131 Prepaid Insurance 12,500141 Equipment 59,000142 Accumulated Depreciation—Equipment 20,660202 Accounts Payable 7,000301 Aretha Hinkle, Capital 65,000302 Aretha Hinkle, Drawing 6,500401 Fees Income 187,230510 Depreciation Expense—Equipment 10,580511 Insurance Expense 5,700514 Rent Expense 16,500517 Salaries Expense 83,000518 Supplies Expense 2,800519 Telephone Expense 3,400523 Utilities Expense 4,700All accounts have normal balances.Required:Prepare the closing entries.Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.5The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.Income Summary Account No. 399BalanceDate Description Debit Credit Debit Credit2019Dec. 31 Closing 134,000 134,00031 Closing 71,800 62,20031 Closing 62,200 0Linda Carter, Capital Account No. 301BalanceDate Description Debit Credit Debit Credit2019Dec. 1 240,000 240,00031 Closing 62,200 302,20031 Closing 22,000 280,2006On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.Required:Record the journal entries necessary to complete closing the accounts.What is the new balance of Madison Wells, Capital?attempt 21The ledger accounts of AXX Internet Company appear as follows on March 31, 2019:ACCOUNT NO. ACCOUNT BALANCE101 Cash $ 40,000111 Accounts Receivable 29,910121 Supplies 5,300131 Prepaid Insurance 12,500141 Equipment 59,000142 Accumulated Depreciation—Equipment 20,660202 Accounts Payable 7,000301 Aretha Hinkle, Capital 65,000302 Aretha Hinkle, Drawing 6,500401 Fees Income 187,230510 Depreciation Expense—Equipment 10,580511 Insurance Expense 5,700514 Rent Expense 16,500517 Salaries Expense 83,000518 Supplies Expense 2,800519 Telephone Expense 3,400523 Utilities Expense 4,700All accounts have normal balances.Required:Prepare the closing entries.Post the transactions in to the appropriate ledger accounts. Hint: Be sure to enter beginning balances.2A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.Required:Complete the worksheet.Record the adjusting entries in the general journal (transactions 1-3).Record the closing entries in the general journal (transactions 4-7).Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.Prepare a post-closing trial balance.Analyze:What total debits were posted to the general ledger to complete all closing entries for the month of December?3The Income Summary and Linda Carter, Capital accounts for Carter Production Company at the end of its accounting period follow.Income Summary Account No. 399BalanceDate Description Debit Credit Debit Credit2019Dec. 31 Closing 134,000 134,00031 Closing 71,800 62,20031 Closing 62,200 0Linda Carter, Capital Account No. 301BalanceDate Description Debit Credit Debit Credit2019Dec. 1 240,000 240,00031 Closing 62,200 302,20031 Closing 22,000 280,2004On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expenses of $228,000 were closed to the account. Madison Wells, Drawing has a debit balance of $12,000 and Madison Wells, Capital has a credit balance of $174,000.Required:Record the journal entries necessary to complete closing the accounts.What is the new balance of Madison Wells, Capital?5Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $4,680; (b) expired rent, $26,000; and (c) depreciation on office equipment, $9,160. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:REVENUE AND EXPENSE ACCOUNTS401 Fees Income $ 200,000 Cr.511 Depr. Expense—Office Equipment 9,160 Dr.514 Rent Expense 26,000 Dr.517 Salaries Expense 99,000 Dr.520 Supplies Expense 4,680 Dr.523 Telephone Expense 2,700 Dr.526 Travel Expense 20,780 Dr.529 Utilities Expense 2,500 Dr.DRAWING ACCOUNT302 Gloria Johnson, Drawing 22,000 Dr.Required:Record the adjusting entries in the general journal (transactions 1-3).Record the closing entries in the general journal (transactions 4-7).6On December 31, 2019, the ledger of Lopez Company contained the following account balances:Cash $ 66,000 Maria Lopez, Drawing $ 52,000Accounts Receivable 5,800 Fees Income 107,500Supplies 4,200 Depreciation Expense 5,500Equipment 52,000 Salaries Expense 34,000Accumulated Depreciation 5,000 Supplies Expense 6,000Accounts Payable 6,000 Telephone Expense 5,200Maria Lopez, Capital 121,500 Utilities Expense 9,300ACC 290 Week 5 Apply Connect AssignmentComplete the Week 5 Assignment in Connect.Note: You have only 1 attempt available to complete assignments1On December 31, after adjustments, Gonzalez Company’s ledger contains the following account balances:101 Cash $ 30,200 Dr.111 Accounts Receivable 16,100 Dr.121 Supplies 2,300 Dr.131 Prepaid Rent 38,900 Dr.141 Equipment 47,000 Dr.142 Accumulated Depreciation—Equip. 1,150 Cr.202 Accounts Payable 6,800 Cr.301 Emilio Gonzalez, Capital (12/1/2019) 48,620 Cr.302 Emilio Gonzalez, Drawing 6,500 Dr.401 Fees Income 120,080 Cr.511 Advertising Expense 4,100 Dr.514 Depreciation Expense—Equip. 830 Dr.517 Rent Expense 2,900 Dr.519 Salaries Expense 21,800 Dr.523 Utilities Expense 6,020 Dr.Required:Journalize the closing entries in the general journal.Post the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.Analyze:What is the balance of the Salaries Expense account after closing entries are posted?2A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner’s home, follows.Required:Complete the worksheet.Record the adjusting entries in the general journal (transactions 1-3).Record the closing entries in the general journal (transactions 4-7).Post the adjusting entries and the closing entries to the general ledger accounts. Hint: Be sure to enter beginning balances.Prepare a post-closing trial balance.Analyze:What total debits were posted to the general ledger to complete all closing entries for the month of December?