Hemsan Technology Interview Questions and Answers

Bank reconciliation is the process of comparing a company's records with those of the bank to ensure they match.

• Gather bank statements and company records

• Compare deposits, withdrawals, and fees on both sets of records

• Identify and resolve any discrepancies

• Adjust the company's records to match the bank's records

• Prepare a bank reconciliation statement to document the process

• Example: If the company recorded a deposit of $500, but the bank only shows $450, investigate the $50 diff...read more

Accrual and deferral transactions involve recording revenues or expenses before or after they are actually earned or incurred.

• Accrual transactions involve recording revenues or expenses before they are actually earned or incurred

• Deferral transactions involve recording revenues or expenses after they are actually earned or incurred

• Examples of accrual transactions include recognizing revenue for services provided but not yet invoiced

• Examples of deferral transactions include rec...read more

Deferral accounting recognizes revenue or expenses when they are earned or incurred, while accrual accounting recognizes revenue or expenses when they are realized or incurred.

• Deferral accounting involves postponing the recognition of revenue or expenses until a later period.

• Accrual accounting involves recognizing revenue or expenses when they are incurred, regardless of when cash is exchanged.

• Deferral accounting is commonly used for prepaid expenses or unearned revenue.

• Accru...read more

Provisions are liabilities that are certain to occur, while contingencies are potential liabilities that may or may not occur.

• Provisions are recognized when the amount is known with reasonable certainty, while contingencies are disclosed in the financial statements as a footnote.

• Provisions are measured at the best estimate of the amount required to settle the obligation, while contingencies are disclosed if the outcome is uncertain.

• Examples of provisions include warranty obli...read more

Depreciation is the allocation of the cost of tangible assets over their useful life, while amortization is the allocation of the cost of intangible assets over their useful life.

• Depreciation applies to tangible assets like buildings, machinery, and vehicles, while amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is usually calculated using methods like straight-line, double declining balance, or units of production, while amorti...read more