EY Global Delivery Services ( EY GDS) Associate Lead Interview Questions and Answers

Q1. How would you identify a Finance Lease? (5 pointers)
Ans. 
A finance lease is a type of lease where the lessee has substantially all the risks and rewards of ownership.
• The lease term is for the major part of the economic life of the asset

• The present value of the minimum lease payments is equal to or more than the fair value of the asset

• The asset is expected to be used by the lessee for the major part of its economic life

• The lease agreement includes an option to purchase the as...read more
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Q2. How would you recognise revenue of Bundled services?
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Recognizing revenue of bundled services involves allocating the total revenue to each service based on their standalone selling prices.
• Identify the standalone selling prices of each service included in the bundle.

• Allocate the total revenue based on the relative fair value of each service.

• Recognize revenue for each service as it is delivered or as the customer consumes the service.

• Ensure that the revenue recognition com...read more
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Q1. Question from ESG framework
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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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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
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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
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Q9. What is LTCA and STCA
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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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Maths accountancy excel test

Q1. Basic accounting questions
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Q2. Formula of cogs
Ans. 
COGS stands for Cost of Goods Sold, and the formula to calculate it is Opening Inventory + Purchases - Closing Inventory.
• COGS = Opening Inventory + Purchases - Closing Inventory

• Opening Inventory: The value of inventory at the beginning of the accounting period

• Purchases: The cost of inventory purchased during the accounting period

• Closing Inventory: The value of inventory at the end of the accounting period

• Example: Openi...read more
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Q3. Bank reconciliation
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Q4. Trial balance related
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Q5. Accounting entries
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