EY Global Delivery Services ( EY GDS) Data Analyst Interview Questions and Answers

Accounting methods refer to the rules and procedures used by companies to prepare financial statements.

• Accounting methods determine how revenue and expenses are recognized in financial statements.

• There are two main accounting methods: cash basis and accrual basis.

• Cash basis accounting records revenue and expenses when cash is actually received or paid.

• Accrual basis accounting records revenue when it is earned and expen...read more

Capital gain is the profit that results from a sale of a capital asset, such as stocks, bonds, or real estate.

• Capital gain is the difference between the purchase price and the selling price of a capital asset.

• It is considered a taxable event by the IRS in the United States.

• Short-term capital gains are taxed at a higher rate than long-term capital gains.

• Examples of capital assets include stocks, bonds, real estate, and

Accrual income and accrual expense are recognized when they are incurred, regardless of when cash is exchanged.

• Accrual income is income that has been earned but not yet received, while accrual expense is an expense that has been incurred but not yet paid.

• Accrual income and expense are recorded in the financial statements in the period in which they are earned or incurred, regardless of when the cash is actually receive...read more

Rent agreements are usually short-term, while lease agreements are long-term contracts.

• Rent agreements are typically month-to-month or for a fixed term, while lease agreements are usually for a longer period, such as one year or more.

• Rent agreements are more flexible and can be easily terminated with notice, while lease agreements are more binding and may have penalties for early termination.

• Rent agreements are common ...read more

Depreciation is the allocation of the cost of an asset over its useful life in the books of accounts.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• It is treated as an operating expense on the income statement, reducing the company's net income.

• Depreciation is recorded on the balance sheet to reduce the carrying amount of the asset.

• There are different methods of calculating...read more

Accounts receivables are amounts owed to a company by customers for goods or services provided, while accounts payable are amounts owed by a company to suppliers for goods or services received.

• Accounts receivables represent money owed to a company by customers, typically shown as an asset on the balance sheet.

• Accounts payable represent money owed by a company to suppliers or vendors, typically shown as a liability on t...read more

Journal entry for investment in businesses with $20,000 cash and $80,000 bank loan.

• Debit the investment account for $100,000 ($20,000 cash + $80,000 bank loan)

• Credit the cash account for $20,000

• Credit the bank loan account for $80,000