ACC VIVA

Introduction:

Good day, I am Nirmalkumar K. from grade 12D. For my

accountancy project, I chose Infosys, a global leader in
consulting, technology, and outsourcing services. The company
is known for its high-quality services and robust financial
performance. In my project, I calculated various accounting
ratios, such as profitability, liquidity, and solvency ratios, and
prepared common size and comparative statements to analyze
the financial health of Infosys.

Infosys Overview (in short for your presentation):

Infosys is an Indian multinational corporation that provides IT

consulting and software services. Headquartered in Bangalore,
it is one of the largest IT companies in India. The company’s
strong performance is reflected in its consistently increasing
revenue and profit figures, as well as its effective management
practices. In this project, I analyzed Infosys' financial
performance using accounting ratios and statements to
understand the company's financial health over the past few
years.

Possible Questions with Answers:

General Questions about Infosys:

1.​ What is Infosys?​

Infosys is a global leader in technology consulting and
outsourcing services. It provides services in various
sectors such as software development, IT consulting, and
business process management.
 2.​ Why did you choose Infosys for your project?​
Infosys has consistently shown strong financial
performance and is a leader in the IT sector. Analyzing its
financials provides valuable insights into the company’s
stability and growth.
3.​ What financial statements did you analyze in your project?​
I analyzed the Profit and Loss Statement, Balance Sheet,
and Cash Flow Statement to understand the financial
position of Infosys.
4.​ What are common size statements?​
Common size statements are financial statements in which
each item is represented as a percentage of a base item.
This helps in comparing the financial performance of
companies of different sizes.
5.​ What are comparative statements?​
Comparative statements show financial data for multiple
periods side by side. They help in understanding the
trends and changes in the company’s financial
performance over time.

Accounting Ratios:

6.​ What are accounting ratios?​

Accounting ratios are used to evaluate the financial
performance of a company. They provide insights into the
company's profitability, liquidity, efficiency, and solvency.
7.​ What is the importance of liquidity ratios?​
Liquidity ratios measure a company’s ability to meet its
short-term obligations. They are important to assess
financial health and operational efficiency.
8.​ What are profitability ratios?​
Profitability ratios measure the company’s ability to
generate profit relative to its revenue, assets, or equity.
Common profitability ratios include the net profit margin
and return on equity.
 9.​ Can you explain the current ratio?​
The current ratio is a liquidity ratio calculated by dividing
current assets by current liabilities. A higher ratio
indicates better short-term financial health.
10.​What is the quick ratio?​
The quick ratio is a more stringent measure of liquidity,
calculated by subtracting inventories from current assets
and dividing by current liabilities.
11.​Explain return on equity (ROE).​
ROE is a profitability ratio calculated by dividing net
income by shareholders' equity. It shows how effectively the
company uses equity investments to generate profit.
12.​What is the debt-equity ratio?​
The debt-equity ratio is a solvency ratio calculated by
dividing total debt by shareholders' equity. It indicates the
proportion of debt used to finance the company's assets.
13.​What are operating profit margins?​
Operating profit margin is a profitability ratio that shows
the percentage of profit a company makes from its
operations. It is calculated by dividing operating profit by
revenue.
14.​What is the significance of the price-earnings (P/E) ratio?​
The P/E ratio measures a company's stock price relative to
its earnings per share. It helps investors assess the
market’s valuation of a company’s shares.

Chapter-Specific Questions (Class 12):

15.​What are the main types of financial statements in accountancy?​

The main financial statements are the Income Statement,
Balance Sheet, and Cash Flow Statement. These are used
to assess the company’s performance, financial position,
and cash flow.
16.​What is the difference between capital and revenue
expenditure?​
 Capital expenditure is used for acquiring or improving
long-term assets, while revenue expenditure is for the
day-to-day running of the business.
17.​What is the matching principle in accounting?​
The matching principle states that expenses should be
recorded in the same period as the revenues they helped
generate. This ensures that financial statements reflect
accurate profit or loss.
18.​What is depreciation, and how is it calculated?​
Depreciation is the allocation of the cost of an asset over
its useful life. It is calculated using methods like
straight-line depreciation or reducing balance method.
19.​What is the difference between cash and accrual
accounting?​
Cash accounting records transactions when cash is
exchanged, while accrual accounting records transactions
when they occur, regardless of cash flow.
20.​ What is a trial balance?​
A trial balance is a list of all ledger accounts and their
balances. It is used to verify that total debits equal total
credits.
21.​What is the significance of the balance sheet?​
The balance sheet shows a company’s financial position by
listing its assets, liabilities, and equity. It helps in assessing
the company’s financial stability.
22.​ What are the two methods of preparing a cash flow
statement?​
The two methods are the direct method and the indirect
method. The direct method shows cash receipts and
payments, while the indirect method adjusts net income
for changes in working capital.
23.​ Explain the difference between fixed and current assets.​
Fixed assets are long-term assets used in operations, while
current assets are short-term assets expected to be
converted into cash within a year.
 24.​ What is a provision in accounting?​
A provision is an amount set aside from profits to cover
future liabilities or expenses, such as bad debts or
warranties.
25.​ What is goodwill in accounting?​
Goodwill is an intangible asset that represents the value of
a company’s brand, customer relationships, and
intellectual property. It is recorded when a company
acquires another at a premium over its book value.

General Knowledge Questions on Accountancy:

26.​ What is double-entry bookkeeping?​

Double-entry bookkeeping is a system where every
transaction affects two accounts, with one debit entry and
one credit entry, ensuring the accounting equation
remains balanced.
27.​What is a journal in accounting?​
A journal is the initial record of financial transactions,
where each transaction is entered chronologically before
posting to the general ledger.
28.​ What is the purpose of the general ledger?​
The general ledger consolidates all transactions recorded
in journals, categorized by accounts, to prepare financial
statements.
29.​What is an accounting period?​
An accounting period is the time span used for preparing
financial statements, usually one year, which can be
monthly, quarterly, or annually.
30.​ What is the role of an auditor in financial reporting?​
Auditors review financial statements to ensure accuracy
and compliance with accounting standards. They provide
an independent opinion on the financial health of a
company.
Final Questions:

31.​What do you understand by the term 'liquidity'?​

Liquidity refers to the ability of a company to meet its
short-term obligations. High liquidity means the company
can easily convert assets to cash.
32.​ What is a balance sheet and why is it important?​
A balance sheet shows a company's financial position by
detailing its assets, liabilities, and equity. It helps
stakeholders assess the financial health of the business.
33.​ What are accounting conventions?​
Accounting conventions are established practices or rules,
such as consistency, conservatism, and materiality,
followed to ensure uniform financial reporting.
34.​ What are the key objectives of accounting?​
The key objectives are to provide accurate financial
information, ensure accountability, help in
decision-making, and comply with legal and regulatory
requirements.
35.​ How does accounting assist in business
decision-making?​
Accounting provides essential financial data, such as
profit margins, costs, and revenues, which help business
owners and managers make informed decisions.
36.​ What is the significance of accounting standards?​
Accounting standards ensure uniformity in financial
reporting, making it easier for stakeholders to understand
and compare financial statements.
37.​What is a fixed cost?​
A fixed cost is a cost that does not change with the level of
production or sales, such as rent or salaries.
38.​ What is the matching concept in accounting?​
The matching concept ensures that expenses are
recorded in the same period as the revenues they
 generate, giving an accurate picture of a company’s
profitability.
39.​What is a provision for doubtful debts?​
A provision for doubtful debts is an estimate of the
amount of receivables that may not be collected, recorded
as an expense to reflect potential losses.
40.​ What is a contingency in accounting?​
A contingency is a potential liability that may arise
depending on the outcome of a future event, such as a
lawsuit or insurance claim.

This setup includes a formal explanation, questions, and

relevant answers that should help you in your accountancy
viva. Good luck! Let me know if you need more details!