Citco Senior Private Equity Fund Accountant Interview Questions and Answers

Prepaid fees allocation journal entries involve recognizing expenses over time instead of all at once.

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

• Allocate a portion of the prepaid fees to expenses each period

• Debit the expense account and credit the prepaid fees account

• Repeat the journal entry each period until all prepaid fees are expensed

• Example: Debit Expense Account $1,000, Credit Prepaid Fees

Corporate events impact the treatment and pricing of securities in private equity funds.

• Corporate events such as mergers, acquisitions, divestitures, and bankruptcies can affect the value of securities held by private equity funds.

• The treatment of these events in accounting practices can vary based on the specific circumstances and accounting standards.

• Pricing of securities may be adjusted to reflect the impact of corp...read more