10+ Capstone Atelier Interview Questions and Answers

Fictitious assets are non-physical assets with no real value, amortization is the gradual write-off of an asset's cost, and surplus account in profit and loss is used to record excess profits.

• Fictitious assets are intangible assets that do not have a physical existence, such as goodwill or patents.

• Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.

• Surplus account in profit and loss is used...read more

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

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

• These rules ensure accuracy and consistency in financial reporting

• For example, when a company receives cash from a customer, the accounts receivable account is debited and the cash account is credited

Accounting concepts are fundamental principles and guidelines that govern the field of accounting.

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

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

• The accrual concept states that transactions should be recorded when they occur, not when the cash is received or paid.

• The going concern concept assumes that a busine...read more

The golden rules of accounts are basic principles to maintain accurate financial records.

• The first golden rule is to maintain accurate records of all financial transactions.

• The second golden rule is to ensure that all transactions are recorded in the correct account.

• The third golden rule is to ensure that all transactions are recorded in a timely manner.

• The fourth golden rule is to ensure that all transactions are properly classified and analyzed.

• The fifth golden rule is to e...read more

Vouchers are documents used to record financial transactions, bad debts are uncollectible debts, and salary entry is the recording of employee salaries in accounting records.

• Vouchers are used to document and track financial transactions within a company.

• Bad debts are debts that are unlikely to be collected from customers and are written off as losses.

• Salary entry involves recording employee salaries in the accounting system for accurate financial reporting.

• Vouchers can includ...read more

Bank reconciliation is the process of comparing the balance in the company's accounting records to the balance in the bank statement.

• Bank reconciliation helps identify discrepancies between the company's records and the bank statement.

• Types of errors in bank reconciliation include timing differences, errors in recording transactions, and bank errors.

• For example, a timing difference could occur if a deposit made at the end of the month is not reflected in the bank statement un...read more

Accounts payable is the amount of money a company owes to its vendors or suppliers for goods or services received.

• Accounts payable is a liability account that tracks the money a company owes to its vendors or suppliers.

• It includes invoices, bills, and other expenses that have not yet been paid.

• Accounts payable is an important part of a company's cash flow management.

• Examples of accounts payable include rent, utilities, and inventory purchases.

• Accounts payable can be managed t...read more

Accounts payable cycle involves processing invoices and making payments, while P2P cycle includes the entire procure-to-pay process from requisition to payment.

• Accounts payable cycle focuses on processing invoices, obtaining approvals, and making payments to vendors.

• P2P cycle includes the entire procure-to-pay process, starting from requisitioning goods or services, receiving them, and finally making payments.

• Accounts payable cycle is a subset of the P2P cycle, which encompas...read more

Matching process ensures accuracy of invoices and payments.

• Matching process involves comparing invoice details with purchase orders and receipts.

• It helps in identifying discrepancies and resolving them before payment.

• Matching can be done manually or through automated software.

• It is a crucial step in accounts payable to prevent errors and fraud.

• Matching also helps in maintaining good relationships with vendors.

Purchase order is a document that authorizes a purchase transaction.

• It is a formal request for goods or services

• It includes details such as quantity, price, and delivery date

• It helps to ensure that purchases are authorized and within budget

• It is used to match invoices with goods received

• It can be created manually or electronically

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

• Accounts payable is a liability on the balance sheet.

• It represents the company's short-term obligations to pay off its debts.

• It includes invoices from suppliers, utility bills, and other expenses.

• Accounts payable is typically recorded as a credit entry in the accounting system.

• It is an important component of working capital management.

• Example:...read more

A purchase order is a commercial document issued by a buyer to a seller, indicating the type, quantity, and agreed price of products or services.

• A purchase order is a formal request made by a buyer to a seller to purchase goods or services.

• It serves as a legally binding contract between the buyer and the seller.

• The purchase order includes details such as the type and quantity of items, agreed prices, delivery dates, and payment terms.

• It helps in streamlining the procurement p...read more

Golden rules are fundamental principles that guide the recording of financial transactions in accounting.

• Golden rules are also known as accounting principles or rules of debit and credit.

• There are three golden rules: the Personal Account rule, the Real Account rule, and the Nominal Account rule.

• The Personal Account rule states that debit the receiver and credit the giver.

• For example, when a company receives cash from a customer, the cash account is debited and the accounts re...read more