10+ Vasa Cosmetics Interview Questions and Answers

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 represents the company's short-term liabilities, while accounts receivable represents its short-term assets.

• Accounts payable is recorded as a liability on the balance sheet, while accounts receivable is recorded as an asset.

• Accounts payable is typically paid by the company to its suppliers within a specified period, while account...read more

A nominal account is a general ledger account that is used to record expenses, revenues, gains, and losses.

• Nominal accounts are temporary accounts that are closed at the end of an accounting period.

• Examples of nominal accounts include sales revenue, rent expense, interest income, and advertising expense.

• These accounts are used to track the financial performance of a business over a specific period of time.

• Nominal accounts are also known as income statement accounts or revenue...read more

Accounts refer to the records of financial transactions, while accounting is the process of recording, summarizing, and analyzing those transactions.

• Accounts are the individual records of financial transactions, such as sales, purchases, and expenses.

• Accounting involves the systematic recording, summarizing, and analyzing of these transactions to provide financial information.

• Accounts are used to track the financial activities of a business or individual, while accounting hel...read more

A country is a geographical region that is politically organized and has its own government and laws.

• A country is a sovereign state with defined borders and a distinct culture.

• It has its own government, laws, and economy.

• Examples of countries include the United States, China, and France.

Assets are resources owned by a company that have monetary value and can be used to generate revenue.

• Assets can include cash, investments, property, equipment, and inventory.

• They are recorded on a company's balance sheet and can be classified as current or non-current.

• Current assets are those that can be converted to cash within a year, while non-current assets are those that have a longer lifespan.

• Examples of assets include a company's cash reserves, its real estate holdings...read more

Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.

• Financial markets facilitate the exchange of financial assets between buyers and sellers.

• They provide a platform for companies to raise capital by issuing stocks and bonds.

• Financial markets include stock markets, bond markets, currency markets, and commodity markets.

• Examples of financial markets include the New York Stock Exchange, NASDAQ, London ...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 is recorded as an expense on the income statement and reduces the asset's value 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 delivery tru...read more

Nominal accounts are used to record revenue, expenses, and gains or losses.

• Nominal accounts are temporary accounts that are closed at the end of an accounting period.

• Examples of nominal accounts include sales revenue, salaries expense, rent expense, interest income, and advertising expense.

• These accounts are used to track the flow of money in and out of a business and determine its profitability.

• Nominal accounts are also known as income statement accounts or profit and loss a...read more

Cash refers to physical currency or coins that can be used to make purchases or pay debts.

• Cash is a tangible asset that can be easily exchanged for goods or services.

• It is commonly used for small transactions or in situations where electronic payment methods are not available.

• Cash can be stored in a wallet, cash register, or bank vault.

• Examples of cash include coins, banknotes, and checks that can be immediately cashed.

• Cash transactions are often subject to regulations and re...read more

Some weaknesses include lack of experience in a specific accounting software, difficulty with public speaking, and tendency to procrastinate.

• Lack of experience in a specific accounting software

• Difficulty with public speaking

• Tendency to procrastinate

Types of accounts include assets, liabilities, equity, revenue, and expenses.

• Assets: resources owned by the company (e.g. cash, inventory)

• Liabilities: debts owed by the company (e.g. loans, accounts payable)

• Equity: the residual interest in the assets of the company after liabilities are deducted (e.g. common stock, retained earnings)

• Revenue: income earned by the company (e.g. sales revenue, service revenue)

• Expenses: costs incurred by the company (e.g. salaries, rent)

Double entry system is a method of bookkeeping that records each financial transaction in two separate accounts to maintain balance.

• Each transaction is recorded in at least two accounts - one account is debited and the other is credited.

• Debits must equal credits to ensure the accounting equation (Assets = Liabilities + Equity) remains balanced.

• It helps in detecting errors and fraud as any discrepancy in the accounts will be immediately apparent.

• Common example is when cash is ...read more

Cash flow statement is a financial report that shows the inflow and outflow of cash in a business over a specific period of time.

• It provides information on how well a company manages its cash position.

• It consists of three sections: operating activities, investing activities, and financing activities.

• Operating activities include cash received from sales, payments to suppliers, and salaries paid to employees.

• Investing activities include cash spent on purchasing assets like equi...read more

There are three types of financial statements: income statement, balance sheet, and cash flow statement.

• Income statement shows a company's revenues and expenses over a period of time.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• Cash flow statement shows a company's inflows and outflows of cash over a period of time.

• Other types of statements include statement of changes in equity and notes to the financial statements.

Difference between what?

• Please specify what you are comparing

• Provide context for the comparison

• Identify key similarities and differences

• Use examples to illustrate the comparison

Assets are resources owned by a company or individual that have monetary value and can be used to generate income.

• Types of assets include tangible assets such as property, plant, and equipment, and intangible assets such as patents, trademarks, and goodwill.

• Financial assets such as stocks, bonds, and cash equivalents are also considered assets.

• Current assets are those that can be easily converted to cash within a year, while non-current assets are those that have a longer lif...read more

Goodwill is an intangible asset that represents the excess of the purchase price of a company over the fair value of its identifiable assets and liabilities.

• Goodwill is recorded on the balance sheet when one company acquires another company for a price higher than the fair market value of its net assets.

• It represents the reputation, brand value, customer relationships, and other intangible assets of the acquired company.

• Goodwill is not amortized but is subject to impairment t...read more