1) Difference between billable and Non billable expenses

Billable expense

a) Billable expenses are expenses incurred by company, on behalf of the customer, in relation to the goods/service it sells/supplies to its customers.
b) Those expenses can be directly traced to company's core revenue-generating activities like sales commissions, customization charges for the product etc are billed as part of the invoice and are recovered from the customer.

Non-Billable expense

a) These are overhead expenses that are essential for the company's operations like rent, stationery, salary of those involved in work that are non-billable, finance charges and administrative costs etc.
b) Unlike billable expenses, these expenses cannot be attributed to a specific customer order or client project and hence these expenses cannot be recovered from customers.

2) Difference between Fiscal Year and Financial year

Fiscal year

a) Fiscal year is a term used by Governments (Government accounting) for accounting its tax revenues and expenditure outlays and for financial planning and budget purposes.
b) There can be only fiscal year applicable for country as a whole. There can be different fiscal year applicable for each country's Government.

Financial year

a) Financial Year is period for which business organisation/entities prepare and present their accounts.
b) Financial year might vary from entity to entity, even within a country.

3) Difference between Fixed Charge and Floating Charge

Fixed Charge

a) Is a charge created on specific identified tangible assets.
b) When a fixed charge is created, the borrower cannot sell or dispose off the asset, without specific consent of the lender.
c) In case of insolvency, fixed charge holders will rank above floating charge for the purpose of preference in settlement of dues.

Floating Charge

a) It is a general/Equitable charge created on the business assets as a whole, both present and future.
b) The borrower can deal (trade/dispose)with assets freely until crystalization occurs.
c) In case of insolvency, floating charge holders take a back seat and are settled only after the fixed charge holders, preferential creditors and cost of liquidation have been paid in full.

4) Mortgage vs Pledge vs Hypothecation Vs Assignment Vs Set off Vs lien

Comparison of Security Charges from 3 angles: Asset type, Physical possession and Right to Sell in case of default.

Mortgage

1. It is the transfer of interest in immovable property (like land or buildings) to secure a loan.
2. Possession stays with the borrower, who continues to live in or use the property.
3. The lender can sell the property through a legal foreclosure process, if the borrower defaults.

Pledge

1. It is the bailment (delivery) of movable goods by the borrower (any movable goods including shares) to the lender as security for payment of a debt.
2. Possession is transferred to the lender, who keeps these physical items in their custody.
3. The lender has a direct right to sell the pledged goods, after giving the borrower reasonable notice.

Hypothecation

1. It is a charge created over movable assets (like cars or inventory) where physical delivery is impractical for the borrower's business or daily life
2. Possession stays with the borrower, allowing them to use the car or sell the business stock.
3. The lender has the right to seize and then sell the asset only if the borrower fails to pay.

Assignment

1. It is the legal transfer of rights or claims to intangible assets (like LIC policies or book debts) to the lender.
2. As the asset is intangible, "possession" is represented by the legal document or contract. Post which, the lender holds the legal right to the future benefits of the contract.
3. The lender can claim the money directly from the third party (like an insurance company) upon maturity.

Set-off

1. It is a bank's accounting right to settle mutual debts between themselves and a customer.
2. Possession is held by the bank in the form of cash or deposits in the customer's account.
3. The bank adjusts the balance by moving money from the credit account to pay off the debt account.

Lien

1. It is a legal right to retain possession of someone property (can be movable assets like car, jewels or immovable assets-in that case title deed) until a specific debt, for that item is paid.
2. Possession is held by the Lender, who already has the item (e.g., a mechanic holding a repaired car, bank holding an FD).
3. On default, the holder can keep the item but usually cannot sell it without a court order.
4. Unlike a Pledge where borrower gives the item as security to get a loan), in a Lien, the creditor usually already has the owner/borrower’s item for another reason (deposits or savings a/c balance with bank ) and simply refuses to give it back until borrower repays the loan.