50+ Zeominds It Solutions Interview Questions and Answers

Month end closing procedures are the steps taken to finalize financial statements at the end of each month.

• Reconciling accounts

• Posting adjusting entries

• Reviewing financial statements

• Preparing reports for management

• Closing temporary accounts

• Ensuring compliance with accounting standards

• Archiving financial records

• Preparing for the next month's accounting cycle

Accumulated Depreciation is the total depreciation expense recognized for an asset over its useful life.

• Accumulated Depreciation is a contra-asset account that is subtracted from the asset's cost to determine its net book value.

• It represents the cumulative amount of depreciation expense recorded for an asset since its acquisition.

• Accumulated Depreciation increases over time as depreciation expense is recognized.

• It is shown on the balance sheet as a negative value.

• For example,...read more

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue is a liability on the balance sheet until it is invoiced.

• It represents the amount of revenue that the company has recognized but has not yet received payment for.

• Unbilled revenue can occur in industries where services are provided over a period of time, such as consulting or software development.

• For example, if a consulting firm completes a project but has not yet sen...read more

Deferred revenue is a concept where revenue is received in advance but recognized as income over time as the goods or services are delivered.

• Deferred revenue is a liability on the balance sheet until it is earned.

• When revenue is received in advance, it is recorded as a debit to cash and a credit to deferred revenue.

• As the goods or services are delivered, the deferred revenue is recognized as income by debiting deferred revenue and crediting revenue.

• Examples of deferred revenu...read more

Accrual is recognizing revenue and expenses when they are incurred, provision for depreciation is setting aside funds for asset depreciation, bad debts are uncollectible debts, journal entries record financial transactions.

• Accrual is the accounting method of recognizing revenue and expenses when they are incurred, regardless of when cash is exchanged.

• Provision for depreciation is the allocation of funds to account for the decrease in value of assets over time.

• Bad debts are de...read more

COGS can be found by subtracting ending inventory from beginning inventory and adding purchases. Unbilled revenue is revenue that has been earned but not yet billed to the customer.

• COGS = Beginning Inventory + Purchases - Ending Inventory

• Unbilled revenue is revenue recognized in the income statement but not yet invoiced to the customer

• Unbilled revenue is a liability on the balance sheet until it is invoiced

Accrual is recognizing revenue and expenses when they are incurred, not when cash is exchanged. Deferred revenue is when payment is received before revenue is earned.

• Accrual accounting matches revenue and expenses to the time period they are incurred, not when cash is exchanged

• Deferred revenue is when a company receives payment for goods or services before they are actually delivered or earned

• Accrual accounting provides a more accurate representation of a company's financial ...read more

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue is recorded as a current asset on the balance sheet.

• The journal entry for unbilled revenue involves debiting unbilled receivables and crediting revenue.

• Once the invoice is generated, the unbilled revenue account is credited and accounts receivable is debited.

• Unbilled revenue is common in service-based industries where work is completed before invoicing.

• Unbilled revenu...read more

Outstanding expenses are unpaid bills while accrued expenses are expenses incurred but not yet paid.

• Outstanding expenses are recorded as accounts payable on the balance sheet.

• Accrued expenses are recorded as liabilities on the balance sheet.

• Examples of outstanding expenses include unpaid rent, utilities, and vendor invoices.

• Examples of accrued expenses include salaries, interest, and taxes.

• Both outstanding and accrued expenses are recognized in the income statement as expense...read more

Unbilled revenue should be accounted for when it is earned but not yet invoiced to the customer.

• Recognize unbilled revenue when the performance obligation is satisfied and revenue is earned.

• Record unbilled revenue as an asset on the balance sheet.

• Adjust unbilled revenue periodically to reflect the actual amount that should be billed to the customer.

• Example: A construction company completes a project in December but does not bill the customer until January. The revenue earned ...read more

Provision for bad debts is an accounting entry made to account for potential losses due to non-payment of debts.

• Provision for bad debts is a contra asset account that reduces accounts receivable on the balance sheet.

• It is based on an estimate of the percentage of accounts receivable that will not be collected.

• The entry is made by debiting the provision for bad debts account and crediting the accounts receivable account.

• The provision for bad debts account is adjusted periodica...read more

Realised forex gain/loss is when the exchange rate changes and the transaction is completed, while unrealised forex gain/loss is when the exchange rate changes but the transaction is not completed.

• Realised forex gain/loss is recorded when an actual transaction occurs and the exchange rate has changed since the initial transaction.

• Unrealised forex gain/loss is recorded when the exchange rate changes but the transaction has not been completed yet.

• Realised gain/loss affects the ...read more

Journal entries for deferred revenue and unbilled revenue

• Deferred revenue journal entry: Debit Cash/Accounts Receivable, Credit Deferred Revenue

• Unbilled revenue journal entry: Debit Unbilled Revenue, Credit Revenue

• Example: Deferred revenue journal entry - Debit Accounts Receivable $1,000, Credit Deferred Revenue $1,000

• Example: Unbilled revenue journal entry - Debit Unbilled Revenue $500, Credit Revenue $500

Answering questions related to financial analysis including forecasting, budgeting, sale of assets, provision for doubtful debt, and budget vs actuals.

• Forecasting involves predicting future financial performance while budgeting involves setting financial goals and targets.

• Sale of assets can impact financial statements through gains or losses.

• Provision for doubtful debt is an estimate of potential bad debts and is recorded as an expense.

• Realized gains and losses are from compl...read more

Adjustments in consolidation involve eliminating intercompany transactions, adjusting for differences in accounting policies, and recognizing goodwill.

• Eliminating intercompany transactions to avoid double counting

• Adjusting for differences in accounting policies to ensure consistency

• Recognizing goodwill to account for the premium paid in acquisitions

Accrual of expenses refers to recognizing expenses in the period they are incurred, regardless of when they are paid.

• Accrual of expenses helps in matching expenses with revenues in the same accounting period.

• Examples include recognizing salaries expense for work done by employees even if the payment is made in the next month.

• Another example is recognizing interest expense on a loan even if the payment is due in the next quarter.

Unearned revenue is money received by a company for goods or services that have not yet been provided.

• Unearned revenue is a liability on the company's balance sheet until the goods or services are delivered.

• It represents an obligation to provide goods or services in the future.

• Common examples include prepaid rent, magazine subscriptions, and advance payments for services.

• As the goods or services are provided, the unearned revenue is recognized as revenue on the income stateme...read more

Deferred revenue is revenue received in advance but not yet earned. Entries include debit to cash or accounts receivable and credit to deferred revenue.

• Deferred revenue represents money received for goods or services that have not yet been provided.

• Entries for deferred revenue typically involve debiting cash or accounts receivable and crediting deferred revenue.

• As the revenue is earned, the deferred revenue is reduced and recognized as revenue on the income statement.

• Example:...read more

Journal entry for sale of fixed assets with profit involves debiting cash and accumulated depreciation, crediting fixed asset and gain on sale of asset accounts.

• Debit cash account for the amount received from the sale

• Debit accumulated depreciation account to remove the accumulated depreciation on the asset

• Credit fixed asset account to remove the cost of the asset from the books

• Credit gain on sale of asset account for the profit made on the sale

P2P cycle refers to the procure-to-pay cycle, which is the process of purchasing goods or services and making payments for them.

• The cycle starts with the identification of a need for goods or services.

• A purchase requisition is created and approved by the appropriate authority.

• A purchase order is generated and sent to the supplier.

• The supplier delivers the goods or services.

• The goods or services received are matched with the purchase order and invoice.

• An invoice is generated b...read more

Interview questions for Assistant Controller covering topics such as deferred revenue, accrued income, month-end closing activities, accumulated depreciation, payroll expenses, balance sheet reconciliation, and revenue recognition.

• Deferred revenue is revenue received in advance for goods or services that have not yet been delivered or performed.

• Accrued income is income earned but not yet received or recorded.

• Month-end closing activities include reconciling accounts, preparing...read more

Yes, aging schedules are commonly used in vendor creation to track outstanding payments.

• Aging schedules help track how long invoices have been outstanding for each vendor

• They provide a snapshot of the current status of accounts payable

• They are useful for identifying overdue payments and managing cash flow effectively

Answering questions related to financial statements and allocation of expenses

• The financial statements include the income statement, balance sheet, and cash flow statement

• Sale of FA impacts the income statement, balance sheet, and cash flow statement through depreciation and gain/loss on sale

• Cash sales and credit sales impact the income statement and cash flow statement differently

• Allocation of rent can be based on square footage, number of employees, or revenue generated by ...read more

Accrual is an accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting matches revenues with expenses in the same accounting period

• It provides a more accurate picture of a company's financial position

• Example: A company records revenue when it earns it, even if the customer has not yet paid

Prepaid expenses are expenses that have been paid in advance but have not yet been incurred.

• Prepaid expenses are considered assets on the balance sheet until they are used up or expire.

• Common examples of prepaid expenses include prepaid rent, insurance premiums, and subscriptions.

• Prepaid expenses are initially recorded as assets and then gradually expensed over time as they are used or consumed.

Accrued expenses are expenses that have been incurred but not yet paid for.

• Accrued expenses are recorded as liabilities on the balance sheet

• They represent expenses that have been recognized but not yet paid

• Examples include accrued salaries, interest, and taxes

Prepaid income is income received in advance before it is earned.

• Prepaid income is recorded as a liability on the balance sheet until it is earned.

• Once the income is earned, it is recognized as revenue on the income statement.

• Common examples of prepaid income include rent payments, subscription fees, and insurance premiums.

• Prepaid income is also known as unearned income or deferred income.

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Revenue = Expenses + Net Income

Accruals are adjustments made to financial statements to ensure that revenues and expenses are recognized in the period they occur, regardless of when cash is exchanged.

• Accruals help match revenues and expenses to the period in which they are incurred

• They are necessary for accurate financial reporting

• Examples include accrued interest, accrued wages, and accrued taxes

Variance analysis is the process of comparing actual financial results to planned or expected results to identify and explain differences.

• Variance analysis helps in understanding the reasons for deviations from the budget or forecast.

• It involves analyzing the differences between actual and expected revenues, expenses, or other financial metrics.

• Variance analysis can be used to identify areas of improvement, cost-saving opportunities, or potential risks.

• For example, if a compa...read more

Operating costs are the expenses associated with running a business on a day-to-day basis.

• Operating costs include rent, utilities, salaries, and supplies.

• These costs are necessary for the business to function and generate revenue.

• Monitoring and controlling operating costs is important for profitability and sustainability.

• Examples of operating costs: employee wages, office rent, insurance premiums, marketing expenses.

Accrual refers to the recognition of revenue or expenses that have been earned or incurred but not yet received or paid.

• Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made.

• This is in contrast to cash accounting, which only recognizes revenue and expenses when payment is received or made.

• Accruals are typically recorded as adjusting entries at the end of an accounting period.

• Examples of accruals inc...read more

Adjustment entries are made to correct errors or omissions in accounting records.

• Adjustment entries are made at the end of an accounting period

• They are used to ensure that financial statements accurately reflect the company's financial position

• Examples of adjustment entries include depreciation, accruals, and prepayments

• Adjustment entries can be made manually or through accounting software

W9 form is a tax form used by businesses to collect information from independent contractors or freelancers. There is no limit to the number of W9 forms that can be issued.

• W9 form is used to collect information such as the contractor's name, address, and taxpayer identification number (TIN).

• Businesses use W9 forms to report payments made to independent contractors to the IRS.

• There is no limit to the number of W9 forms that can be issued by a business.

• W9 forms are not submitte...read more

Due accounting records transactions when payment is received, while accrual accounting records transactions when they occur.

• Due accounting is cash-based and records transactions when payment is received.

• Accrual accounting is based on when transactions occur, regardless of payment.

• Example: Due accounting records revenue when a customer pays for a product, while accrual accounting records revenue when the product is sold.

• Example: Due accounting records expenses when they are pa...read more

Accounting entries for AP and AR process involve recording expenses and revenues, tracking payments and receipts, and reconciling accounts.

• AP entries involve recording expenses and liabilities, such as invoices from vendors

• AR entries involve recording revenues and assets, such as sales invoices to customers

• Payments made to vendors are recorded as credits to AP and debits to cash/bank account

• Receipts from customers are recorded as credits to AR and debits to cash/bank account

• R...read more

Prepaid refers to expenses paid in advance, while prepaid JE stands for prepaid journal entry which records the prepayment in accounting books.

• Prepaid expenses are costs that have been paid for in advance but have not yet been incurred.

• Prepaid JE is a journal entry that records the prepayment as an asset on the balance sheet.

• Example: Prepaid rent is a common prepaid expense where rent is paid in advance for future months.

• Example: Prepaid insurance is another example where ins...read more

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• There are three golden rules of accounting: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit all expenses and losses, Credit all incomes and gains.

• These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity.

• For example, when a company receives cash from a customer, the cash account is debited (incr...read more

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

• Current liabilities are obligations that must be settled within one year or the normal operating cycle of the business.

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

• They are listed on the balance sheet and are important for assessing a company's liquidity and financial health.

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue is typically found in service-based industries where work is completed before invoicing.

• It represents revenue that has been recognized in the financial statements but not yet billed to the customer.

• Unbilled revenue is recorded as an asset on the balance sheet until it is invoiced.

• Examples include consulting services provided but not yet billed, or subscription service...read more

Accruals and Prepaid are accounting concepts used to record expenses and revenues in the period they occur, rather than when cash is exchanged.

• Accruals refer to expenses that have been incurred but not yet paid for

• Prepaid expenses are costs that have been paid for in advance but have not yet been used up

• Accruals and Prepaid help in matching expenses and revenues to the period they relate to

• Accruals and Prepaid are important for accurate financial reporting and decision-making

Deferred revenue is revenue received in advance for goods or services that have not yet been provided.

• Deferred revenue is recorded as a liability on the balance sheet until the goods or services are delivered.

• The entry for deferred revenue involves debiting cash or accounts receivable and crediting deferred revenue.

• Once the goods or services are provided, the deferred revenue is recognized as revenue on the income statement.

• Example: Company receives $1,000 in advance for a se...read more

Unbilled revenue refers to revenue that has been earned but not yet invoiced to the customer.

• Unbilled revenue is recognized on the income statement as a liability until it is invoiced.

• It represents work that has been completed but not yet billed to the customer.

• Common in service-based industries where work is done before invoicing, such as consulting or legal services.

The entry for the sale of an asset involves recording the sale price, removing the asset's cost and accumulated depreciation from the books, and recognizing any gain or loss.

• Debit the Cash or Accounts Receivable account for the sale price of the asset

• Credit the Asset account to remove the cost of the asset

• Credit the Accumulated Depreciation account to remove the accumulated depreciation

• Recognize any gain or loss by debiting or crediting the Gain or Loss on Sale of Asset accou...read more

Entries for unbilled invoice are recorded as accrued revenue in accounts receivable and revenue in accounts payable.

• Accrued revenue is recorded in accounts receivable until the invoice is billed

• Revenue is recorded in accounts payable until the invoice is billed

• Once the invoice is billed, the entries are reversed and recorded in the appropriate accounts

I have extensive experience in US GAAP accounting standards.

• I have worked with US GAAP accounting standards for over 5 years.

• I am familiar with the principles and guidelines of US GAAP.

• I have prepared financial statements in accordance with US GAAP.

• I have experience in implementing new US GAAP accounting standards.

• I have worked with auditors to ensure compliance with US GAAP.

• I have trained and mentored junior staff on US GAAP accounting standards.

My expectation is to be compensated fairly based on my qualifications and experience.

• I expect a competitive salary that reflects my skills and expertise

• I also expect benefits such as health insurance and retirement plans

• Opportunities for professional development and growth are important to me

• I value a positive work environment and supportive team culture

AR process involves invoicing customers for goods or services provided and tracking payments received.

• Generate and send invoices to customers

• Record payments received from customers

• Follow up on overdue payments

• Reconcile accounts receivable to ensure accuracy

• Provide reports on outstanding balances to management

Materiality definition refers to the significance or importance of information in relation to a company's financial statements.

• Materiality is a concept used in accounting to determine the relevance of information to users of financial statements.

• It involves assessing whether a particular item or error is significant enough to impact decision-making.

• Materiality is subjective and can vary depending on the size and nature of the company.

• Examples of material items include large t...read more