10+ LAUNCH IT ENTERPRISE DEVELOPMENT Interview Questions and Answers

Possible reasons for a 100% increase in repair and maintenance costs compared to the previous year.

• Increased wear and tear on equipment or facilities

• Higher costs for materials or labor

• Delayed maintenance from previous year

• Expansion of operations or facilities

• Unforeseen breakdowns or emergencies

Fund flow statement shows the changes in a company's financial position over a period of time, while cash flow statement shows the inflows and outflows of cash during a specific period.

• Fund flow statement focuses on changes in working capital, fixed assets, and long-term investments, while cash flow statement focuses on cash inflows and outflows.

• Fund flow statement helps in analyzing the reasons for changes in a company's financial position, while cash flow statement helps in...read more

Deferred revenue expenses are costs that have been paid in advance but have not yet been incurred.

• Deferred revenue expenses are recorded as assets on the balance sheet until they are incurred.

• Examples include prepaid insurance, prepaid rent, and prepaid advertising.

• Once the expenses are incurred, they are then recognized as expenses on the income statement.

• Deferred revenue expenses help in matching expenses with revenues in the period they are incurred.

A long form audit report is a detailed document that provides a comprehensive analysis of an organization's financial statements and internal controls.

• Includes detailed information on the audit process, findings, and recommendations

• Provides a thorough assessment of the organization's financial health and compliance with regulations

• May include appendices with supporting documentation such as sample testing results

• Often used by stakeholders, regulators, and investors to evaluat...read more

Income leakage refers to the loss of potential revenue due to inefficiencies or errors in financial processes.

• Income leakage can occur through uncollected payments, inaccurate billing, or inefficient expense management.

• Examples include missed billing opportunities, underpricing of products or services, and unauthorized discounts.

• Identifying and addressing income leakage can help businesses improve their financial performance and profitability.

Materiality concept is the principle that financial information should be reported if it could influence the economic decisions of users.

• Materiality concept states that information is material if omitting it or misstating it could influence the decisions of users of the financial statements.

• Materiality is based on the nature and amount of the item judged in the particular circumstances of its omission or misstatement.

• Examples of material items include significant errors, omis...read more

Lease Accounting standard refers to the guidelines for reporting leases on financial statements.

• Lease Accounting standard requires lessees to recognize assets and liabilities for all leases with terms longer than 12 months.

• It classifies leases as either finance leases (similar to owning the asset) or operating leases (similar to renting the asset).

• The standard aims to provide a more transparent view of a company's financial position by bringing leases onto the balance sheet.

• I...read more

Depreciation journal entry is used to record the decrease in value of an asset over time.

• Debit the depreciation expense account and credit the accumulated depreciation account

• Depreciation expense is an income statement account while accumulated depreciation is a balance sheet account

• Depreciation is calculated using different methods such as straight-line, double-declining balance, and units of production

• Example: If a company has a machine with a cost of $10,000 and a useful l...read more

Answers to various tax-related questions for a Tax Associate interview.

• Traditional IRA is funded with pre-tax dollars, while Roth IRA is funded with after-tax dollars.

• Sch H is used to report household employment taxes.

• Home office expenses can be deducted up to the amount of net income on Sch C.

• Liability is a legal obligation while provision is a potential liability.

• Prepaid expenses are expenses paid in advance but not yet incurred.

• Amortization is the process of spreading out ...read more

Depreciation is the allocation of the cost of an asset over its useful life, amortization is the allocation of the cost of intangible assets over their useful life, and depression is a mental health condition.

• Depreciation is used for tangible assets like buildings and machinery, amortization is used for intangible assets like patents and copyrights, and depression is a mental health disorder.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance ...read more

Contingent liability is a potential obligation that may arise in the future, while contingent asset is a potential asset that may arise in the future.

• Contingent liability is recorded in the financial statements if the likelihood of the obligation occurring is probable and the amount can be reasonably estimated.

• Examples of contingent liabilities include pending lawsuits, warranties, and guarantees.

• Contingent assets are not recognized in the financial statements but disclosed i...read more

IRA stands for Individual Retirement Account. Traditional IRA allows tax-deferred contributions and withdrawals, while ROTH IRA allows tax-free withdrawals.

• IRA stands for Individual Retirement Account

• Traditional IRA allows tax-deferred contributions and withdrawals

• ROTH IRA allows tax-free withdrawals

Cash flow statements are prepared by analyzing the inflows and outflows of cash during a specific period.

• Start with the net income from the income statement

• Adjust for non-cash items like depreciation and amortization

• Include changes in working capital accounts like accounts receivable and accounts payable

• Consider cash flows from operating, investing, and financing activities

• Summarize the cash inflows and outflows to arrive at the ending cash balance