TUTORIAL FOR BUSINESS PROCESS SERVICES IN FINANCE AND ACCOUNTING

TUTORIAL I

1. The business for which accounts are maintained is treated as an entity distinct from its owners.
This concept is known as
A) Business Entity Concept B) Monetary Unit Concept
C) Going Concern Concept D) Periodic Reporting Concept
2. The accounting assumption that the business will be in operation for a long time and not likely
to be liquidated in foreseeable future is
A) Going Concern Concept B) Business Entity Concept
C) Monetary Unit Concept D) Periodic Reporting Concept

3. GAAP stands for

A) Generally Accepted Accounting Principles B) Generally Accepted Auditing Principles
C) General Accounts & Auditing Practices D) General Advanced Accounting Practices

4. In _______ system, transactions are recorded based on the income and expenditure become
due or accrued.
A) Cash System B) Mercantile System C) Accounting System D) Advanced System

5. __________ accounts represent properties including tangible and intangible.

A) Real Account B) Personal Account
C) Nominal Account D) Representative Personal Account
6. Define Voucher and what are the types of voucher?
TUTORIAL II

1.________ will provide what a business owns and owes

A) Trading account B) Profit and Loss account
C) Balance Sheet D) Income and Expenditure account

2. IASB stands for

A) Indian Accounting Stands Board B) Italian Accounting Standards Board
C) International Accounting Standards Board D) Indian Accounting and Statistics Board

3. The concept that implies that the procedures used in accountancy for a given entity should be
appropriate and to be followed uniformly from period to period is known as
A) Convention of Full disclosure B) Convention of Conservatism
C) Convention of Consistency D) Convention of materiality

4. ________ is a book containing all accounting transactions for a period irrespective of the
nature of transactions.
A) Purchase Ledger B) Sales Ledger C) General Ledger D) Cash Ledger

5. For accounting entries impacting other than purchase, expense, sales or banking transactions,
______ is used.
A) Purchase voucher B) Payment voucher C) Sales voucher D) Journal voucher

6. What is Business Process Outsourcing?

TUTORIAL III
1._______ companies can invite members of the general public to invest in their equity.
A) Public companies B)Private companies C) Sole Trading D) Partnership

2. ________ is contracting of a specific business task which is not core to the business to a third
party service provider.
A) Partnership Concern B) Business Agreement
C) Sub-contracting D) Business Process Outsourcing

3. ITES stands for

A) Indian Textile Enhancement Society B) Information Technology Enabled Services
C) International Technical Entity System D) Information Technology Entrance system

4. H2R stands for ________

A) Hire to Retire B) Hire to Record C) Human to Record D) Help to Record

5. When the processes are outsourced to a specialized BPS service provider this is known as
A) Captive BPS B) Third Party BPS C) Data Services D) Blend Services

6. Define Captive BPS and what are the advantages of Captive BPS?
TUTORIAL IV
1. _____________ estimates that by 2020, the BPS industry revenue will be USD 65 billion.
A) Government of India B) ICAI C) USA D) NASSCOM

2. NAASCOM stands for

A) The National Association Software Service Companies
B) The National Association Software Service Council
C) The National Accounting and Software Services Companies
D) The National Auditing and Software Services Companies

3. The BPS industry contributed ____ percentage to India’s GDP in the last decade.
A) 2% B) 1.5% C) 1.75% D) 3%

4. _______ refers to study of business data using statistical analysis to predict and improve
business performance
A) Transaction Management B) General Accounting C) Financial Planning D) Analytics

5. EDI stands for

A) Enhanced Data Interchange B) Electronic Data Interchange
C) Electronic Distance Integration D) Entity Distance Interconnectivity

6. Describe the Accounting Concepts and Convention

TUTORIAL V

1. The flow of raw material into manufacturing company from a supplier are processed and
finally finished goods are shipped to end customers through a physical distribution system is
called
A) Transportation B) Business Process C) Production Management D) Supply chain

2. Purchased items which have not yet entered the production process is known as
A) Finished Goods B) Raw material C) Work in progress D) Distribution inventory

3. Inventory which is stored to be sold when market prices are high

A) Anticipation Inventory B) Fluctuation Inventory
C) Transportation Inventory D) Hedge Inventory

4. FOQ stands for

A) Firm Organizing Quality B) Fixed Order Quantity
C) Firm Order Quality D) Fixed Order Quality

5. MRP stands for

A) Maximum Retail Price B) Material Requirement Planning
C) Minimum Required Production D) Maximum Reorder Point

6. What are the contents in purchase order? Give a format.

TUTORIAL VI
.1. ________ is an order issued to supplier to provide materials.
A) Sales Order B) Customer Order C) Purchase Order D) Stock
Order

2. _________ is the money which a person owes to vendor for products/ services purchased or
utilized on credit.
A) Accounts Receivable B) Accounts Payable C) Closing Stock D) Opening Stock

3. In accounting payables are also referred to as

A) Debtors B) Cash at Bank C) Cash in Hand D) Creditors

4. _______ vendors are those vendors with whom the business has not placed an order for a
reasonable time.
A) Operative vendors B) Dormant vendors C) Selling Vendors D) Purchasing vendor

5. FOB stands for

A) Freight on Board B) Free on Board C) Fixed one Borrower D) First Only Buy
6. Describe the Supply Chain Management.
TUTORIAL VII

1.________ is a discount on the list price granted by a manufacturer or wholesaler to buyers in

the same trade.
A) Cash discount B) Trade discount C) Stock discount D) Share discount

2. ________ discount is offered by vendors for prompt / early settlement of their bills.
A) Cash discount B) Trade discount C) Sales discount D) Stock discount

3. If there are minor defects in the product purchased and if the buyer agrees to keep the product
at reduced price, it is ________ for the buyer.
A) Purchase return B) Sales return C) Purchase allowance D) Sales allowance

4. C & F stands for

A) Car and Fast B) Cost and Furniture C) Cost and Freight D) Carriage and Freight

5. CIF stands for

A) Canada India France B) Country inside Freight
C) Car Insurance Fee D) Cost Insurance Freight
6. Explain the types of inventory and objectives of inventory management.
TUTORIAL VIII

1.________ is the proof of document sent by the supplier to buyer for return of materials or
defective goods delivered.
A) Credit note B) Debit note C) Sales return D) Purchase return

2. ________ is raised to recover the dues from vendors like defensive goods cash volume
discount.
A) Debit Note B) Credit Note C) Purchase return D) Sales Invoice

3. Evaluated Receipt Settlement refers to

A) Payment Processing B) Duplicate Payments
C) Balance Sheet D) Self billing invoice Process

4. Transfer of funds from one account to another utilizing electronic means instead of by cheque
or cash.
A) CFT B) FET C) EFT D) TFE

5. ACH refers to
A) Advanced Cost Handling B) Automatic Cheque Handling
C) Automated Clearing House D) Advanced Cash House
6. What you mean by vendor reconciliation? Explain its merits.
TUTORIAL IX
.1. When advance payment is made by vendor to the organization, the vendor account shows
A) Debit balance B) Credit balance C) Zero balance D) Debit and Credit balance

2. Reconciling the vendor statement balances / transactions to the vendor account in the account
payables ledger is known as
A) Vendor Reconciliation B) Supplier Reconciliation
C) Creditor Reconciliation D) All of the above

3. Expand COA.
A) Cost of accounts B) Credit of accounts
C) Chart of accounts D) Cash of accounts

4. ________ refers to the funds available to the business to manage daily transactions.
A) Capital B) Cash in hand C) Cash at bank D) Working Capital

5. _________ refers to money owed by the customer to the business resulting from credit sales or
service.
A) Cash in hand B) Credit purchase C) Sundry Creditors D) Accounts Receivable

6. Explain the significance of effective AP process.

TUTORIAL X

1. MSA stands for

A) Money Selling Act B) Money Saving Attitude
C) Master Share Agreement D) Master Sales Agreement

2. SLA means
A) Service Level Agreement B) Service Level Arrangement
C) Service List Arrangement D) Service List Assignment

3. _________ is a process to recover outstanding / overdue balances owed to a company or

organization by its customers.
A) Payment B) Advance C) Creditors D) Collection

4. ________ letter is a form of demand notice issued to a debtor, if an individual or entity does
not settle their dues.
A) Collection letter B) Purchase letter C) Dunning letter D) Demand letter

5. _______ is a process to apply the cash received from the customer against the open invoice.
A) Cash allotment B) Cash allocation C) Cash distribution D) Cash Application

6. Briefly explain the steps involved in invoice processing.

TUTORIAL XI
1.A post office set by banks where payments are received from customers. The bank pricks the
cheques from PO Box several times and deposits them to the company’s account notifying them
the amount deposited. This box is known as
A) Clock Box B) Rock Box C) Block Box D) Lock Box

2. _________ is a payment instrument also called as negotiable instrument and is used to make
payment for business or individual outstanding dues.
A) Debit Card B) Credit Card C) Withdrawal Slip D) Cheque

3. CHIPS refers to
A) Clearing House Interbank Payment System
B) Clearing House International Payment System
C) Clearing House Inter-business Payment System
D) Clearing House Indian Payment System

4. R2R refers to
A) Record to Return B) Return to Record C) Return to Report D) Record to Report

5. _______ refers to a unit which generates income for a business

A) Cost Reduction B) Stock Center C) Profit Center D) Asset Center

6. What are the advantages and disadvantages of OCR?

TUTORIAL XII

1. Expand EFT
a) Electronic Fund Transfer b) Electronic Fund Transfer
c) Eco Fund Transfer d) Electronic Fund Transfers

2. Expand FIFO
a) First in first out Method b) Fast in first out Method
c) Final in first out Method d) Force in first out Method

3. Expand LPO
a) Left process outsourcing b) legal process outsourcing
c) Light process outsourcing d) less process outsourcing

4. The accounts payable function is referred to, in the BPO terminology as

A) Order to collection B) Controls and Compliance
C) Procurement to pay D) Record to report

5. What is GRN?
A) Goods Re-dispatched Note B) Goods Received Note
C) Goods Returned note D) All the above

6. What are the roles of credit rating agency?

TUTORIAL XIII

1. IFRS stands for ____________

A) International financial reporting standards B) Inter financial reporting standards
C) International financial reporting system D) Indian financial reporting standards

2. What is AS 1?
A) Valuation of Inventories B) Disclosure of Accounting Policies
C) Cash flow statement D) Amalgamation of Companies

3. AICPA stands for _________

A) American Institute of Certified Public Accountants
B) American Institute of Charted Public Accountants
C) American Institute of Certified Public Associations
D) American Institute of Certified process Accountants

4. Accounting standards in India are framed by

A) The institute of Chartered Accountants of India
B) The Institute of Cost and Works Accountants of India
C) The Institute of Company Secretaries of India
D) All of the above.

5. BCP refers to _______

A) Business Correction Program B) Business Correction Planning
C) Business Connection Planning D) Business Continuity Planning

6. What you mean by credit management? Explain the key components of effective credit
management?
TUTORIAL XIV

1. Expand ERP
A) Enterprise Resource Process B) Enterprise Retaining Planning
C) Enterprise Resource Planning D) Exchange Resource Planning

2. Cash discount is also known as

A) Trade discount B) Purchase discount C) Commodity Discount D) Sales discount

3. A document sent by an organization showing that the recipient is indebted to the organization
for the amount shown in the _____________
A) Credit note B) Debit note C) Sales note D) Purchase note

4. _____________ refers to the level of performance standards agreed between the service
provider and the outsourcing organization.
A) SLA B) ALS C) LASD) ASL

5. ______________ is time taken for completing a process subprocess or an activity.

a) TAT b) ATT c) TTA D) TAA
6. Explain the process of order management.
TUTORIAL XV

1. What is 3Way match?

A) Matching Purchase Order, GRN and Invoice
B) Matching of PO, Purchase requisition and GRN
C) Matching PO, Purchase requisition and Invoice
D) Matching PO, Sales Order and Purchase invoice

2. XBRL refers to ________

A) Extensible business Reporting language B) Excluded business Reporting language
C) Evaluation Business Reporting Language D) Eliminate Business Reporting language

3. Which of the following is an ERP product?

A) Tally B) SAP C) Oracle Application D) All of the above

4. SAP stands for

A) Systematic Accounting Procedure B) Systematic Accounting Programme
C) System Application and Products D) System Accounting and Payments

5. Unlimited liability refers to

A. For the debt of the business, proprietor’s personal assets are also liable.
B. Proprietors are not responsible for liability of their business
C. Owners are liable to some extent
D. None of the above

6. Explain the various types of statutory reports.