Aarti Distilleries Interview Questions and Answers

Outstanding expenses are expenses that have been incurred but not yet paid.

• Outstanding expenses are recorded as a liability in the balance sheet.

• They are also known as accrued expenses.

• Examples include rent, salaries, and taxes.

• They are usually paid in the next accounting period.

• They are shown in the profit and loss account as an expense.

Current liabilities are debts or obligations that are due within one year or the normal operating cycle of a business.

• Examples include accounts payable, short-term loans, and accrued expenses.

• They are listed on the balance sheet and are important for assessing a company's liquidity and ability to meet short-term obligations.

• Current liabilities are different from long-term liabilities, which are debts or obligations due in more than one year.

Contingent liability is a potential obligation that may or may not occur in the future.

• It is a possible liability that depends on a future event

• It is not a certain liability and may or may not occur

• Examples include pending lawsuits, warranties, and guarantees

• Contingent liabilities must be disclosed in financial statements

To create a company account, follow these steps:

• Register the company with the appropriate government authorities

• Obtain a unique tax identification number for the company

• Open a business bank account

• Set up accounting software or hire an accountant to manage financial records

• Establish a chart of accounts to track income, expenses, assets, and liabilities

• Maintain accurate and up-to-date financial records

• Comply with all legal and regulatory requirements

• Regularly reconcile bank sta...read more

Prepaid expenses are expenses paid in advance and are recorded as assets until they are used or consumed.

• Prepaid expenses are initially recorded as assets on the balance sheet

• They are gradually expensed over the period they are used or consumed

• Examples of prepaid expenses include insurance premiums, rent, and subscriptions

• Prepaid expenses are usually classified as current assets

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data in financial statements

• Analyzing financial information to make business decisions

• Reporting financial results to stakeholders

• Examples: preparing balance sheets, income statements, cash flow statements

An account manager is responsible for managing and maintaining relationships with clients and ensuring their satisfaction.

• Acts as a liaison between clients and the company

• Develops and implements strategies to increase sales and revenue

• Provides excellent customer service and support

• Monitors client accounts and resolves any issues

• Maintains accurate records and prepares reports

• Examples: Advertising account manager, sales account manager, customer account manager