Coffee Day Enterprises Interview Questions and Answers

A transaction monitoring system is a tool used to track and analyze financial transactions to detect suspicious activities and ensure compliance with regulations.

• Monitors financial transactions in real-time or retrospectively

• Uses algorithms and rules to identify unusual patterns or behaviors

• Helps prevent fraud, money laundering, and other financial crimes

• Ensures compliance with regulations such as Anti-Money Laundering (AML) and Know Your Customer (KYC)

• Examples include Actimi...read more

Identifying suspicious transactions is crucial to prevent fraud and ensure compliance with regulations.

• Look for transactions that are unusually large or small compared to typical activity

• Monitor for frequent transactions just below reporting thresholds

• Check for transactions involving high-risk countries or individuals

• Review transactions with incomplete or inconsistent information

• Utilize transaction monitoring software to flag potentially suspicious activity

Identifying a transaction within a transaction involves analyzing the details of the transaction to determine its components.

• Review the transaction details to understand the different elements involved

• Look for sub-transactions or multiple components within the main transaction

• Identify unique identifiers or codes that differentiate each transaction within the main one

• Utilize software or tools to help segregate and analyze individual transactions

• Consult with team members or exp...read more

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business.

• Accounting involves recording financial transactions such as sales, purchases, and expenses.

• It includes summarizing the financial data into financial statements like balance sheets and income statements.

• Analyzing the financial information to provide insights for decision-making.

• Reporting the financial results to stakeholders like investors, creditors, and managem...read more

Revenue recognition concept refers to the accounting principle that revenue should be recorded when it is earned and realized, regardless of when cash is received.

• Revenue is recognized when it is earned, not necessarily when cash is received.

• It is important to match revenue with the expenses incurred to generate that revenue.

• Revenue recognition can be complex, especially for long-term contracts or subscription-based services.

• Examples include recognizing revenue from a sale at...read more

Amortisation is the process of spreading out the cost of an asset over its useful life.

• It is a method of accounting used to reduce the value of an intangible asset over time

• It is commonly used for assets such as patents, trademarks, and copyrights

• The cost of the asset is divided into equal amounts over the useful life of the asset

• The amount of amortisation is recorded as an expense on the income statement

• Example: A company purchases a patent for $100,000 with a useful life of...read more

Prepaid expense is an advance payment made for goods or services that will be received in the future.

• Prepaid expenses are recorded as assets on the balance sheet

• They are gradually expensed over time as the goods or services are received

• Examples include prepaid rent, insurance premiums, and subscriptions

• Prepaid expenses are commonly used in businesses to manage cash flow