WorkSpan Interview Questions and Answers

The balance sheet shows a company's financial position at a specific point in time, while the profit and loss statement shows its financial performance over a period of time.

• Balance sheet provides a snapshot of assets, liabilities, and equity at a specific date.

• Profit and loss statement shows revenues, expenses, and net income over a period of time.

• Changes in the balance sheet affect the profit and loss statement, and vice versa.

• For example, an increase in assets on the balan...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.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

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

A bank reconciliation statement is a document that compares the balance in a company's bank account with the balance shown in its accounting records.

• It helps identify any discrepancies between the two balances, such as outstanding checks or deposits in transit.

• The statement typically includes adjustments for items like bank fees, interest earned, and errors.

• The goal of a bank reconciliation statement is to ensure the accuracy of a company's financial records and bank account ...read more

Prepaid expenses are expenses paid in advance but not yet incurred, while outstanding expenses are expenses incurred but not yet paid.

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

• Outstanding expenses are liabilities on the balance sheet until they are paid.

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

• Examples of outstanding expenses include accrued salaries, utilities, and taxes.

GST returns are periodic statements that businesses registered under GST law need to file with the tax authorities.

• GST returns need to be filed by businesses to report their sales, purchases, and tax liability to the government.

• There are different types of GST returns such as GSTR-1, GSTR-3B, GSTR-9, etc., each serving a specific purpose.

• Filing GST returns accurately and on time is crucial to avoid penalties and maintain compliance with the law.

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a consumption tax that is collected on the value added to goods and services at each stage of the supply chain

• It is designed to be a comprehensive tax on the supply of goods and services

• GST is implemented in many countries around the world, including India, Australia, and Canada

TDS sections refer to the sections under the Income Tax Act that deal with Tax Deducted at Source.

• Section 192 - TDS on salary

• Section 194A - TDS on interest other than interest on securities

• Section 194C - TDS on payments to contractors/sub-contractors

• Section 194J - TDS on professional or technical services

TDS stands for Tax Deducted at Source, which is a tax deducted by the payer at the time of making payment.

• TDS is deducted by the payer and deposited with the government on behalf of the payee.

• It is applicable on various types of payments like salary, interest, rent, commission, etc.

• The rate of TDS varies depending on the nature of payment and the provisions of the Income Tax Act.

• TDS certificates are issued to the payee as proof of tax deduction.

• Non-compliance with TDS provisi...read more