South Ocean Transport Interview Questions and Answers

Revenue recognition standards dictate when revenue should be recognized, while accrual journal entries record revenue when earned and expenses when incurred.

• Revenue recognition standards determine when revenue should be recognized based on the completion of services or delivery of goods

• Accrual journal entries record revenue when earned and expenses when incurred, regardless of when cash is exchanged

• Examples of revenue recognition standards include ASC 606 for US GAAP and IFRS...read more

Inventory refers to the goods or materials a business holds for sale or use in production.

• Inventory includes raw materials, work-in-progress, and finished goods.

• It is an important aspect of supply chain management.

• Inventory management involves balancing the costs of holding inventory with the benefits of having enough stock to meet demand.

• Examples of businesses that rely heavily on inventory management include retail stores, manufacturers, and wholesalers.

Budgeting is the process of creating a financial plan for a specific period, while forecasting is predicting future financial outcomes.

• Budgeting involves setting financial goals and creating a plan to achieve them

• Forecasting involves predicting future financial outcomes based on past data and trends

• Both are important tools for financial planning and decision-making

• Examples include creating a budget for a business or forecasting sales for a new product

Revenue recognition refers to the process of accounting for and reporting revenue earned by a company.

• Revenue recognition is a critical aspect of financial reporting and is governed by accounting standards such as GAAP and IFRS.

• It involves determining when revenue should be recognized, how much revenue should be recognized, and in which period it should be recognized.

• Revenue can be recognized at different points in time depending on the nature of the transaction, such as when...read more

The JE for Depreciation involves debiting Depreciation Expense and crediting Accumulated Depreciation.

• Debit Depreciation Expense account to recognize the expense on the income statement.

• Credit Accumulated Depreciation account to reduce the value of the asset on the balance sheet.

• Depreciation is a non-cash expense that allocates the cost of an asset over its useful life.

• Example: JE for Depreciation - Debit Depreciation Expense $1,000, Credit Accumulated Depreciation $1,000.

Prepaid expenses are assets paid for in advance but have not yet been used. The journal entry involves debiting an expense account and crediting a prepaid expense account.

• Debit the prepaid expense account to increase the asset

• Credit the corresponding expense account to decrease the expense

• Example: JE for prepaid rent - Debit Prepaid Rent, Credit Rent Expense

The 5-step model of Ind AS 115 is a framework for recognizing revenue from contracts with customers.

• Identify the contract with the customer

• Identify the performance obligations in the contract

• Determine the transaction price

• Allocate the transaction price to the performance obligations

• Recognize revenue as the entity satisfies a performance obligation

Revenue recognition is the process of recording revenue in a company's financial statements.

• Revenue recognition determines when and how revenue is recognized in a company's financial statements.

• It is important for companies to follow proper revenue recognition guidelines to ensure accurate financial reporting.

• Revenue can be recognized at different points in time depending on the type of transaction and the terms of the sale.

• Examples of revenue recognition include recognizing ...read more