30+ Res Business Solution Interview Questions and Answers

Depreciation is the decrease in the value of an asset over time. Types include straight-line, reducing balance, and sum-of-the-years'-digits.

• Depreciation is a method of allocating the cost of an asset over its useful life.

• Straight-line depreciation evenly distributes the cost of an asset over its useful life.

• Reducing balance depreciation charges a higher amount in the early years and decreases over time.

• Sum-of-the-years'-digits depreciation charges more in the early years and...read more

Golden rules of accounting are basic principles to maintain accurate financial records.

• The first golden rule is to maintain a record of all financial transactions.

• The second golden rule is to record all transactions in the appropriate account.

• The third golden rule is to ensure that the accounting equation (Assets = Liabilities + Equity) is always balanced.

• Examples of these rules in practice include recording all sales in the sales account and all purchases in the purchase acc...read more

Bills receivable refers to the amount of money owed to a company by its customers for goods or services provided on credit.

• Bills receivable is an asset account on a company's balance sheet.

• It represents the amount of money that a company expects to receive from its customers in the future.

• Bills receivable can be in the form of promissory notes, checks, or other types of written agreements.

• For example, if a company sells goods to a customer on credit, it will record the amount...read more

Account Payables are the amounts a company owes to its vendors, while Account Receivables are the amounts owed to the company by its customers. BRS is a process of reconciling bank statements with a company's accounting records. Deferred Revenue is the revenue received in advance for goods or services that are yet to be delivered.

• Account Payables are the liabilities of a company that arise from the purchase of goods or services on credit.

• Account Receivables are the assets of ...read more

Risk management is the process of identifying, assessing, and controlling potential risks that could affect an organization's objectives.

• It involves identifying potential risks and their likelihood of occurring

• Assessing the potential impact of those risks on the organization

• Developing strategies to mitigate or avoid those risks

• Monitoring and reviewing the effectiveness of risk management strategies

• Examples include financial risk, operational risk, and reputational risk

Bills payable refers to the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

• Bills payable is a liability account in the company's balance sheet.

• It represents the amount of money the company owes to its suppliers or vendors.

• The amount is recorded when the company receives the goods or services but has not yet paid for them.

• Examples of bills payable include invoices for raw materials, utilities, rent, and other expe...read more

A balance sheet is a financial statement that provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

• It shows what a company owns (assets), what it owes (liabilities), and the amount invested by shareholders (equity).

• Assets include cash, accounts receivable, inventory, property, and equipment.

• Liabilities include loans, accounts payable, and accrued expenses.

• Shareholders' equity represents the residual interest in the compa...read more

Trading account is a financial statement that shows the results of buying and selling goods and services.

• Trading account is a part of the final accounts of a business.

• It shows the gross profit or loss made by the business through trading activities.

• It includes details of sales, purchases, direct expenses, and direct incomes.

• The formula for calculating gross profit is: Gross Profit = Net Sales - Cost of Goods Sold.

Bank reconciliation is the process of comparing a company's bank statement with its own accounting records.

• Identifying and resolving discrepancies between the two records

• Ensuring accuracy of financial statements

• Examples: checks that have not cleared, bank fees, interest earned

• May involve adjusting entries in accounting records

There are several types of insurance, including life, health, auto, home, and travel insurance.

• Life insurance provides financial support to the beneficiaries of the policyholder in case of their death.

• Health insurance covers medical expenses incurred by the policyholder.

• Auto insurance provides coverage for damages caused by or to the insured vehicle.

• Home insurance covers damages to the insured property and its contents.

• Travel insurance provides coverage for unexpected events ...read more

Insurance is a contract between an individual and an insurance company to protect against financial loss.

• Insurance provides financial protection against unexpected events such as accidents, illnesses, or natural disasters.

• The individual pays a premium to the insurance company in exchange for coverage.

• The insurance company assumes the risk of financial loss and pays out claims when necessary.

• Types of insurance include health, life, auto, home, and business insurance.

• Insurance ...read more

Insurance is a contract between an individual and an insurance company where the individual pays premiums in exchange for financial protection against potential losses.

• Types of insurance include life insurance, health insurance, auto insurance, home insurance, and more.

• Life insurance provides a lump sum payment to beneficiaries upon the insured's death.

• Health insurance covers medical expenses and can include services like doctor visits, hospital stays, and prescription medica...read more

Yes, I am flexible in any shift timings.

• I am open to working in different shifts, including night shifts.

• I understand the importance of being adaptable and available for work at different times.

• I have previous experience working in shifts and have successfully adjusted my schedule accordingly.

• I prioritize the needs of the job and am willing to make necessary adjustments to accommodate different shift timings.

Insurance is a financial product that provides protection against financial losses.

• Insurance is a contract between an individual or organization and an insurance company, where the insurer agrees to provide financial protection in case of specified events such as accidents, illnesses, or property damage.

• There are different types of insurance such as life insurance, health insurance, auto insurance, and property insurance.

• Insurance premiums are the payments made by the insured...read more

Insurance works by providing financial protection against potential risks and losses.

• Insurance involves individuals or organizations paying premiums to an insurance company in exchange for coverage against specific risks.

• When a covered event occurs, the insurance company compensates the policyholder for their losses.

• Types of insurance include health, life, auto, home, and property insurance.

• Insurance helps spread the risk among a large number of policyholders, making it more ...read more

Bank reconciliation entry is a process of matching the bank statement with the company's accounting records.

• Compare the bank statement with the company's accounting records

• Identify any discrepancies or differences

• Make necessary adjustments to the accounting records

• Record the reconciled balance in the accounting system

There are generally accepted accounting principles (GAAP) that guide accounting practices.

• Generally Accepted Accounting Principles (GAAP) are a set of accounting rules and standards used in the United States.

• GAAP ensures consistency and transparency in financial reporting.

• Examples of GAAP rules include the revenue recognition principle, matching principle, and historical cost principle.

Accounts payable is money owed by a company to its suppliers, while accounts receivable is money owed to a company by its customers.

• Accounts payable refers to the money a company owes to its suppliers for goods or services purchased on credit.

• Accounts receivable refers to the money owed to a company by its customers for goods or services provided on credit.

• Accounts payable is a liability on the company's balance sheet, while accounts receivable is an asset.

• Managing accounts p...read more

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

• The golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• For example, when a company receives cash from a customer, the cash account is debited (increased) and the accounts receivable account is credited (decreased).

• Similarly, when a company pays for expenses, the exp...read more

Accounting is important as it helps in keeping track of financial transactions, making informed decisions, and complying with legal requirements.

• Accounting helps in maintaining accurate financial records and tracking transactions.

• It provides insights into the financial health of a business and helps in making informed decisions.

• It helps in complying with legal requirements and regulations.

• Proper accounting practices can help in identifying areas of improvement and increasing ...read more

BRS stands for Bank Reconciliation Statement, which is a document that compares the bank statement with the company's accounting records.

• BRS helps in identifying any discrepancies between the two records.

• It ensures that all transactions are recorded accurately.

• It is usually prepared on a monthly basis.

• Example: If a company's accounting records show a payment of $1000 to a supplier, but the bank statement shows a payment of $950, then there is a discrepancy that needs to be in...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life.

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

• It is used to spread the cost of an asset over its useful life for accounting and tax purposes.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Examples of depreciable assets include buildings, machinery, vehicles, and equipment.

Reconciliation is the process of comparing two sets of records to ensure their accuracy and consistency.

• Reconciliation involves comparing and matching data from different sources or systems.

• It is commonly used in financial accounting to ensure that the balances in different accounts are in agreement.

• Reconciliation can also be done for bank statements, invoices, inventory records, etc.

• The process typically involves identifying discrepancies, investigating the causes, and makin...read more

Accounting concept refers to the basic principles and guidelines that govern the preparation and presentation of financial statements.

• Accounting concepts provide a framework for recording, analyzing, and reporting financial transactions.

• They ensure consistency and comparability in financial statements across different organizations.

• Some common accounting concepts include the accrual concept, going concern concept, and matching concept.

• The accrual concept states that revenues ...read more

Marine insurance is a type of insurance that covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred.

• Provides coverage for ships, cargo, terminals, and transport

• Covers risks such as damage, loss, theft, and liability

• Common types include hull insurance, cargo insurance, and liability insurance

• Important for businesses involved in international trade

Insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

• Insurance is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.

• The insured pays a premium to the insurance company in exchange for coverage and protection.

• Common types of insurance include health insurance, life insurance, auto insurance, and property insurance.

• Insurance helps indivi...read more

Insurance is a financial product that provides protection against potential financial losses.

• Insurance is a contract between an individual or organization and an insurance company.

• The individual or organization pays a premium in exchange for coverage against specific risks.

• Types of insurance include health, life, auto, home, and property insurance.

• Insurance helps mitigate financial risks and provides peace of mind.

• Examples of insurance companies include State Farm, Allstate, ...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.

• It represents the reduction in the value of an asset on the balance sheet.

• Depreciation can be calculated using various methods such as straight-line, declining balance, or units of production.

• For example, a company purchases a machine for $10,000 with an estimated usef...read more

Premium is the amount paid for insurance coverage.

• Premium is the cost of insurance coverage paid by the policyholder to the insurance company.

• It is typically paid on a regular basis, such as monthly or annually.

• The premium amount can vary based on factors like the type of insurance, coverage limits, and the insured individual's risk profile.

• Higher premiums are often associated with more comprehensive coverage or higher risk individuals.

• Premiums are essential for maintaining i...read more

General accounts refer to the financial records of a company, while process involves the systematic steps taken to complete a task.

• General accounts involve recording financial transactions, preparing financial statements, and analyzing financial data.

• Process refers to the series of steps or actions taken to achieve a specific goal or outcome.

• In accounting, the process may involve recording transactions, reconciling accounts, and preparing financial reports.

• Examples of process...read more