CohnReznick Senior Analyst Interview Questions and Answers

Accrual process is a method of recognizing revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual process involves recording revenues and expenses in the period they are earned or incurred, regardless of when cash is received or paid.

• This method provides a more accurate representation of a company's financial position and performance.

• For example, if a company provides services in Dec...read more

Prepaid process involves receiving payment for goods or services before they are delivered, impacting profit and loss statement by deferring revenue recognition.

• Prepaid process involves receiving payment in advance for goods or services.

• Revenue from prepaid items is recognized gradually over time as the goods or services are delivered.

• Prepaid expenses are recorded as assets on the balance sheet until they are used or e...read more