Befree Business Resourceing Associate Interview Questions and Answers

Q1. Difference b/w Capital exp and revenue exp
Ans. 
Capital expenses are for long-term assets while revenue expenses are for day-to-day operations.
• Capital expenses are for acquiring or improving long-term assets like buildings or equipment.

• Revenue expenses are for day-to-day operations like salaries, rent, and utilities.

• Capital expenses are usually depreciated over time while revenue expenses are fully expensed in the period incurred.
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Q2. What is bank reconciliation
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Bank reconciliation is the process of comparing a company's records to its bank statement to ensure they match.
• Bank reconciliation helps identify discrepancies between the company's records and the bank statement.

• It involves comparing transactions, such as deposits and withdrawals, in the company's records to those in the bank statement.

• Any differences found during the reconciliation process need to be investigated and...read more
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Q3. Gst journal entry
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Understanding GST journal entries is crucial for accurate financial reporting and compliance.
• GST (Goods and Services Tax) is a value-added tax on the supply of goods and services.

• A typical GST journal entry involves recording sales and purchases separately.

• Example: When a business sells goods worth $1,000 with a 10% GST, the entry would be: Debit Cash $1,100, Credit Sales $1,000, Credit GST Payable $100.

• For purchases, ...read more
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Q4. What is Deferred revenue expenditure
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Deferred revenue expenditure refers to expenses that are incurred in one accounting period but are recognized as assets and expensed over a period of time.
• Deferred revenue expenditure is recorded as an asset on the balance sheet and gradually expensed over the period of benefit.

• Examples include expenses incurred for setting up a new business, advertising costs, and research and development expenses.

• It helps in matching...read more
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Q5. Is accounting profit and tax profit are same if not what is the key difference
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Accounting profit and tax profit are not the same. The key difference lies in the treatment of certain expenses and income.
• Accounting profit is based on the principles of accounting and includes all revenues and expenses recorded in financial statements.

• Tax profit is used for calculating taxes owed to the government and may have adjustments for tax purposes, such as depreciation and interest expenses.

• Key differences in...read more
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Q6. What is deemed dividend and what is block of assets
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Deemed dividend is a distribution of profits by a company that is not actually paid out, while block of assets refers to a group of assets treated as a single unit for tax purposes.
• Deemed dividend is a distribution of profits by a company to its shareholders, even if no actual dividend is declared or paid out.

• Block of assets refers to a group of assets that are treated as a single unit for the purpose of calculating de...read more
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Q7. Name 5 deduction
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Five common deductions include medical expenses, charitable donations, mortgage interest, student loan interest, and state and local taxes.
• Medical expenses: Costs related to healthcare, such as doctor visits, prescriptions, and medical equipment.

• Charitable donations: Contributions to qualified organizations, such as churches or non-profits.

• Mortgage interest: Interest paid on a mortgage for a primary or secondary reside...read more
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Q8. How would you do a tax reconciliation
Ans. 
Tax reconciliation involves comparing financial records with tax returns to ensure accuracy.
• Gather all financial records and tax returns for the period in question

• Identify any discrepancies between the two sets of records

• Adjust the financial records to match the tax returns, or vice versa

• Document any changes made during the reconciliation process

• Ensure all adjustments are properly accounted for in the final reconciliat...read more
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Q9. What is LTCA and STCA
Ans. 
LTCA stands for Long-Term Capital Asset and STCA stands for Short-Term Capital Asset.
• LTCA refers to assets held for more than 36 months, while STCA refers to assets held for 36 months or less.

• Gains from LTCA are taxed at a lower rate compared to gains from STCA.

• Examples of LTCA include real estate, stocks held for more than 3 years, while examples of STCA include stocks held for less than 3 years.
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Q10. How would you do a scrutiny and what if there is any difference
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Q11. Questions about my resume certification, family and work experience
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Q12. Name the disallowed expenses in a tax return
Ans. 
Disallowed expenses in a tax return
• Personal expenses

• Gifts and donations

• Political contributions

• Illegal activities

• Fines and penalties

• Life insurance premiums

• Health club dues

• Hobby expenses
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Q1. A/r, A/p, GST, Depreciation, Journal entries for the same
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Q2. A/r and A/p difference
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A/r and A/p difference
• A/r stands for Accounts Receivable, which represents the money owed to a company by its customers for goods or services provided.

• A/p stands for Accounts Payable, which represents the money a company owes to its suppliers or vendors for goods or services received.

• The main difference between A/r and A/p is the direction of the cash flow: A/r represents money coming into the company, while A/p repres...read more
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Q3. GST and Journal entry
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Q4. Depreciation and Accumulated Depreciation
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Q1. Salary Expectation
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Test was easy not finding any difficulty

Q1. Interview was easy only simple question asked
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Q2. General entries and case to case questions asked
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Q1. HR asked about your profile.
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Q1. Written test include some technical ,mail writing
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Q1. Virtual interview of technical questions included accountancy, taxation,audit
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