ARCHGROUP INTERNATIONAL Interview Questions and Answers

Accrued income is revenue that has been earned but has not yet been received.

• Accrued income is recorded as a current asset on the balance sheet.

• It represents revenue that has been recognized but not yet received in cash.

• Common examples include interest income, rent income, and service fees.

• Accrued income is typically recorded through an adjusting entry at the end of an accounting period.

• It is important for accurate financial reporting and matching revenue with the period it w...read more

Financial statement is a document that summarizes a company's financial activities and position. Income statement shows company's revenues and expenses over a period of time.

• Financial statement is a report that provides an overview of a company's financial performance.

• It includes balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Income statement shows company's revenues, expenses, and profits or losses over a specific period of time.

• It h...read more

Depreciation is the decrease in value of an asset over time.

• Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.

• It reflects the wear and tear, obsolescence, or loss of value of an asset.

• Depreciation expense is recorded on the income statement and reduces the asset's value on the balance sheet.

• There are various methods of calculating depreciation, such as straight-line, declining balance, and units of production.

• For example, a comp...read more

Inter company refers to transactions or activities that occur between two or more companies within the same corporate group.

• Inter company transactions involve the transfer of goods, services, or funds between different entities within the same parent company.

• These transactions are typically recorded in the financial statements of each individual company involved.

• Inter company activities can include inter company sales, inter company loans, inter company service agreements, et...read more

P2P stands for Procure-to-Pay, which is the process of requisitioning, purchasing, receiving, paying for, and accounting for goods and services.

• P2P involves the entire cycle from requesting goods/services to paying for them.

• It includes steps like requisitioning, purchase order creation, goods receipt, invoice processing, and payment.

• P2P aims to streamline and automate the procurement process to improve efficiency and reduce costs.

• It often involves software systems like ERP or...read more