100+ NYO Lift Interview Questions and Answers

Balance sheet reconciliation is the process of comparing and adjusting the balances of assets, liabilities, and equity accounts to ensure accuracy and completeness.

• Balance sheet reconciliation involves comparing the balances of various accounts on the balance sheet with supporting documentation.

• It helps identify discrepancies, errors, or omissions in the financial records.

• The process includes verifying the accuracy of account balances, investigating and resolving any differen...read more

Intercompany refers to transactions between two or more companies within the same group, while Intracompany refers to transactions within the same company.

• Intercompany transactions involve different legal entities within the same group of companies.

• Intracompany transactions involve different departments or divisions within the same company.

• Intercompany transactions may involve transfer pricing and tax implications.

• Intracompany transactions are usually recorded in the same set...read more

3 way or 2 way checking in AP profile refers to matching the purchase order, invoice, and receiving report (3 way) or just the purchase order and invoice (2 way) to ensure accuracy and prevent fraud.

• 3 way checking involves matching the purchase order, invoice, and receiving report to ensure that the goods or services were received and the invoice matches the purchase order.

• 2 way checking involves matching the purchase order and invoice to ensure that the goods or services wer...read more

If the invoice is not received or misplaced, contact the vendor immediately to request a duplicate copy.

• Contact the vendor and explain the situation

• Request a duplicate copy of the invoice

• Verify the payment amount and due date

• Ensure the payment is made on time

• Maintain a record of all communication with the vendor

Prepaid refers to an expense paid in advance, and its accounting treatment involves recognizing it as an asset initially and gradually expensing it over time.

• Prepaid expenses are costs that are paid in advance but have not yet been incurred.

• They are considered assets because they provide future economic benefits.

• The accounting treatment involves initially recording the prepaid expense as an asset on the balance sheet.

• As time passes or the benefit is consumed, the prepaid expe...read more

Accruals, closing stock, depreciation, amortization, journal entries, contingent liabilities, trial balance, and balance sheet explained.

• Accruals are expenses incurred but not yet paid for.

• Closing stock is not shown in trial balance as it is a balance sheet item.

• Depreciation and amortization are methods of allocating the cost of assets over their useful life.

• Journal entries are used to record transactions in accounting.

• Contingent liabilities are potential liabilities that may...read more

Reconciliation is the process of comparing and adjusting financial records to ensure accuracy and consistency.

• Reconciliation is the process of comparing two sets of records to identify and resolve any discrepancies.

• It is commonly used in accounting to ensure that the balances in the company's books match the balances in the bank statements.

• The need for reconciliation arises due to various reasons such as errors, omissions, timing differences, and fraud.

• Common reasons for vari...read more

To account amount paid in April'21 for Jan'21-Dec'21, create a prepaid expense account and record the payment as a prepaid expense.

• Create a prepaid expense account in the balance sheet

• Record the payment as a prepaid expense in the prepaid expense account

• Allocate the prepaid expense to the relevant months (Jan'21-Dec'21) using adjusting entries

• Debit prepaid expense account and credit cash account for the invoice received in Apr'21

• Record the rest of the month's expenses as usua...read more

Contact other consultants or escalate the issue to higher authorities

• Check if there are any other consultants available who can assist with the payment

• If not, escalate the issue to the higher authorities in the company

• Ensure that the payment is made on time to avoid any delays or penalties

• Maintain a record of the steps taken to resolve the issue

Goodwill calculations are based on the accounting principles of valuing intangible assets and liabilities.

• Goodwill is calculated by subtracting the fair value of net assets from the purchase price of a company.

• Intangible assets such as patents, trademarks, and brand recognition are included in the calculation.

• Intangible liabilities such as legal disputes or negative public perception can also be included.

• Losses are typically shown on the income statement, while assets are sho...read more

Items in income statement include revenue, expenses, net income, and earnings per share.

• Revenue: the total amount of money generated by the company from its operations.

• Expenses: the costs incurred by the company in order to generate revenue.

• Net income: the total profit or loss after all expenses have been deducted from revenue.

• Earnings per share: the portion of a company's profit allocated to each outstanding share of common stock.

Profit and loss statement shows revenue and expenses while balance sheet shows assets, liabilities and equity.

• Profit and loss statement shows the financial performance of a company over a period of time, usually a year.

• It includes revenue, expenses, and net income or loss.

• Balance sheet shows the financial position of a company at a specific point in time.

• It includes assets, liabilities, and equity.

• Profit and loss statement is used to determine the profitability of a company w...read more

Answering questions related to accounting principles and bank reconciliation.

• Golden rules of accounting are: 1. Debit what comes in, credit what goes out. 2. Debit all expenses and losses, credit all incomes and gains. 3. Debit the receiver, credit the giver.

• Types of accounts are: Real (assets), Personal (liabilities and equity), and Nominal (revenues and expenses). Examples include cash (real), accounts payable (personal), and rent expense (nominal).

• To classify an account, d...read more

The extension of a blue prism process while release is .bprelease

• Blue Prism processes are saved with a .bprelease extension when released

• This extension indicates that the process has been released for production use

• The .bprelease file contains the compiled code and configuration settings for the process

Accruals and deferrals are accounting concepts used to recognize revenue and expenses in the period they are earned or incurred, regardless of when cash is exchanged.

• Accruals involve recognizing revenue or expenses before cash is exchanged.

• Deferrals involve recognizing revenue or expenses after cash is exchanged.

• Accruals are recorded with a debit to an expense or asset account and a credit to a liability or revenue account.

• Deferrals are recorded with a debit to an asset or ex...read more

I have 3 years of experience in the Record to Report domain, including preparing financial statements and reconciling accounts.

• Prepared monthly financial statements in compliance with GAAP standards

• Performed account reconciliations to ensure accuracy of financial data

• Assisted in the implementation of new accounting software for improved efficiency

• Collaborated with cross-functional teams to streamline RTR processes

Journal entries for prepaid expenses and accruals involve recognizing expenses before they are paid or revenue before it is received.

• Prepaid expenses are initially recorded as assets and then expensed over time as they are used up.

• Accruals involve recognizing expenses or revenue before cash is exchanged.

• For prepaid expenses, a journal entry would involve debiting an expense account and crediting a prepaid expense account.

• For accruals, a journal entry would involve debiting an...read more

Unapplied refers to payments received but not yet applied to a specific invoice or account, while unidentified refers to payments received but not matched to any invoice or account.

• Unapplied payments are typically held in a suspense account until they can be properly applied.

• Unidentified payments may require further investigation to determine the correct account or invoice to apply them to.

• Unapplied payments can occur when a customer overpays or makes a payment without specif...read more

Cash application is recorded as a debit to cash and a credit to accounts receivable. Depreciation is recorded as a debit to depreciation expense and a credit to accumulated depreciation.

• Cash application is the process of applying customer payments to their outstanding invoices.

• The general entry for cash application involves debiting cash and crediting accounts receivable.

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

• The general entry for dep...read more

To retain a dissatisfied customer, it is important to listen to their concerns, apologize for any issues, offer a solution or compensation, and follow up to ensure satisfaction.

• Listen to the customer's concerns and show empathy

• Apologize for any issues or mistakes made by the company

• Offer a solution or compensation to address the customer's dissatisfaction

• Follow up with the customer to ensure their satisfaction and build a long-term relationship

I have worked on UIA and AA modes in spy testing.

• UIA mode stands for User Interface Automation mode and is used for testing desktop applications.

• AA mode stands for Accessibility Automation mode and is used for testing accessibility features of applications.

• UIA mode is used for testing UI elements like buttons, text boxes, etc. while AA mode is used for testing accessibility features like screen readers, high contrast mode, etc.

• UIA mode is supported by Microsoft technologies l...read more

Cash embezzlement can be recorded by creating a journal entry to debit the cash account and credit the embezzlement expense account.

• Create a journal entry to record the embezzlement

• Debit the cash account to reduce the balance

• Credit the embezzlement expense account to increase the expense

• Include a description of the embezzlement in the journal entry

• Ensure the entry is properly documented and approved

• Consider involving legal authorities if necessary

Revenue expenditure is for day-to-day expenses while capital expenditure is for long-term assets.

• Revenue expenditure is incurred for maintaining the business operations and generating revenue.

• Capital expenditure is for acquiring assets that will provide benefits over multiple years.

• Revenue expenditure is recorded in the income statement and is fully deductible in the year it is incurred.

• Capital expenditure is recorded in the balance sheet and is depreciated over its useful li...read more

Amortisation is the allocation of the cost of intangible assets over their useful life, while depreciation is the allocation of the cost of tangible assets over their useful life.

• Amortisation is used for intangible assets like patents, copyrights, and trademarks.

• Depreciation is used for tangible assets like buildings, machinery, and vehicles.

• Amortisation is typically calculated using the straight-line method or the declining balance method.

• Depreciation is typically calculated...read more

Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when cash is exchanged. Deferred accounting recognizes revenue and expenses when cash is is exchanged.

• Accrual accounting records revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid.

• Deferred accounting involves postponing the recognition of revenue or expenses until a later date when cash is exchanged.

• Accrual accounting provides a more...read more

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

• The first golden rule is the Personal Account rule, which states that debit the receiver and credit the giver. For example, when a customer pays cash for goods purchased, the cash account is debited and the sales account is credited.

• The second golden rule is the Real Account rule, which states that debit what comes in and credit what goes out. For example, when a company pur...read more

Entry for sale of goods and effects in financial statements.

• The sale of goods and effects is recorded as revenue in the income statement

• The cost of goods sold is deducted from the revenue to calculate gross profit

• The sale of fixed assets is recorded as a gain or loss in the income statement

• The sale of investments is recorded as a gain or loss in the income statement

• The cash received from the sale is recorded in the cash flow statement

Journal entries of invoice involve recording the financial transactions related to the invoice.

• Journal entry for recording the invoice amount as accounts receivable

• Journal entry for recording the corresponding revenue or income

• Journal entry for recording any applicable taxes or discounts

• Journal entry for recording the payment received against the invoice

Variance measures the spread of data points in a dataset from the mean.

• Variance is a statistical measure that shows how much individual data points differ from the average of the dataset.

• The formula to calculate variance is: Variance = Σ(xi - x̄)² / n, where xi is each data point, x̄ is the mean of the dataset, and n is the total number of data points.

• Variance can be used to assess the consistency or variability of a dataset.

• A higher variance indicates that data points are more...read more

GAAP is a set of accounting principles and standards used to prepare and present financial statements.

• GAAP stands for Generally Accepted Accounting Principles

• It ensures consistency and comparability in financial reporting

• It includes guidelines for revenue recognition, balance sheet classification, and expense recognition

• Examples of GAAP include the FASB Accounting Standards Codification and the SEC's Financial Reporting Release

• R2R (Record to Report) is a finance and accountin...read more

Deferred tax is a temporary difference between the carrying amount of an asset or liability in the financial statements and its tax base.

• Deferred tax arises due to differences in accounting rules and tax regulations.

• It can be either deferred tax asset or deferred tax liability.

• Deferred tax asset is recognized when taxes paid in advance or taxes paid in excess of accounting profit.

• Deferred tax liability is recognized when taxes payable are less than accounting profit.

• It is tre...read more

Amortization is for intangible assets, while depreciation is for tangible assets.

• Amortization is the process of spreading the cost of an intangible asset over its useful life.

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

• Amortization is typically used for assets like patents, copyrights, and trademarks.

• Depreciation is commonly used for assets like buildings, machinery, and vehicles.

Depreciation is the decrease in value of tangible assets over time, while amortization is the decrease in value of intangible assets over time.

• Depreciation applies to tangible assets like buildings, vehicles, and machinery.

• Amortization applies to intangible assets like patents, copyrights, and trademarks.

• Depreciation is calculated based on the asset's useful life and salvage value.

• Amortization is calculated based on the asset's estimated useful life.

• Both depreciation and amor...read more

A work queue is a list of tasks or jobs waiting to be completed by a worker or a group of workers.

• Work queues help in managing and prioritizing tasks.

• They ensure that tasks are completed in a timely and efficient manner.

• Work queues can be used in various industries such as customer service, manufacturing, and software development.

• Examples of work queues include customer support ticket queues, production line queues, and software bug queues.

Account Receivable is the money owed to a company by its customers for goods or services provided. O2C is Order to Cash process.

• Account Receivable is a part of a company's balance sheet.

• It represents the amount of money that customers owe to the company.

• O2C is the process of receiving and processing customer orders, invoicing, and receiving payment.

• It involves various steps such as order entry, credit check, order fulfillment, invoicing, and payment processing.

• An example of O...read more

Financial lease transfers all risks and rewards of ownership to the lessee, while operating lease does not.

• Financial lease is long-term and non-cancellable, while operating lease is short-term and cancellable.

• In financial lease, the lessee is responsible for maintenance and insurance, while in operating lease, the lessor takes care of these.

• Financial lease is recorded as an asset and liability on the balance sheet, while operating lease expenses are recorded on the income sta...read more

Key fields of an invoice include date, invoice number, customer information, item description, quantity, price, and total amount.

• Date of invoice

• Invoice number

• Customer information (name, address, contact details)

• Item description

• Quantity of items

• Price per item

• Total amount

• Payment terms

Genpact is a global professional services firm specializing in digital transformation, analytics, and process optimization.

• Genpact was founded in 1997 as a business unit within General Electric.

• It became an independent company in 2005 and is headquartered in New York City.

• Genpact offers services in areas such as finance and accounting, procurement, supply chain, and customer service.

• The company has a presence in over 30 countries and serves clients in various industries inclu...read more

Accruals are expenses incurred but not yet paid, while depreciation is the allocation of the cost of an asset over its useful life.

• Accruals are expenses that have been incurred but not yet paid for, such as salaries, rent, or utilities.

• Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, reflecting its gradual wear and tear or obsolescence.

• Accruals help match expenses with revenues in the same accounting period, while depreciation sp...read more

Payment mode refers to the method of payment while payment terms refer to the agreed upon time frame for payment.

• Payment mode is the way in which payment is made, such as cash, credit card, or bank transfer.

• Payment terms refer to the agreed upon time frame for payment, such as net 30 or 60 days.

• Payment mode and payment terms are both important factors in financial transactions.

• For example, a company may agree to pay a supplier via bank transfer with payment terms of net 60 da...read more

PDD & SDD documents are prepared by the project team.

• PDD (Product Design Document) is prepared by the product team and SDD (Software Design Document) is prepared by the development team.

• The project manager oversees the preparation of these documents.

• The documents outline the design and functionality of the product or software.

• They serve as a reference for the development team during the implementation phase.

• The documents are updated throughout the project as needed.

Balance sheet reconciliation is done to ensure accuracy and completeness of financial statements.

• To identify and rectify errors or discrepancies in financial records

• To ensure compliance with accounting standards and regulations

• To provide assurance to stakeholders about the financial health of the organization

• To facilitate decision-making based on accurate financial information

• Examples: reconciling bank statements, accounts payable and receivable, inventory, and fixed assets

Accrual is an accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

• Accruals help in matching revenues and expenses in the same accounting period

• Not posting accruals can result in inaccurate financial statements

• It can lead to misleading profitability figures

• Accruals ensure that all financial transactions are properly recorded

Deferred revenue is revenue received in advance for goods or services that have not yet been provided. Deferred revenue expenditure is an expense incurred for a benefit that will be received in the future.

• Deferred revenue is a liability on the balance sheet until the goods or services are delivered.

• Deferred revenue expenditure is recorded as an asset on the balance sheet and is gradually expensed over the period of benefit received.

• Examples of deferred revenue include subscri...read more

The format of BS as per Schedule III includes various sections and sub-sections for presenting financial statements.

• Schedule III of the Companies Act, 2013 prescribes the format for preparation of Balance Sheet.

• The Balance Sheet should be presented in a specific order, starting with the name of the company and ending with the signature of the authorized signatory.

• The Balance Sheet should include various sections such as Equity and Liabilities, Assets, and Notes to Accounts.

• Ea...read more

Various monthly and weekly reports have been prepared to track performance and progress.

• Sales reports to track revenue and sales performance

• Financial reports to monitor expenses and budget

• Inventory reports to manage stock levels

• Employee performance reports to evaluate productivity

• Customer feedback reports to assess satisfaction levels

Environmental variables are system-wide and session variables are user-specific.

• Environmental variables are set at the system level and can be accessed by all users on the system.

• Session variables are set for a specific user and are only accessible during that user's session.

• Environmental variables are used to store system-wide settings such as PATH, while session variables are used to store user-specific data such as login credentials.

• Environmental variables are usually set ...read more

Default depreciation for motor vehicle is 15% as per Income Tax Act.

• The default depreciation rate for motor vehicle is 15% as per Income Tax Act.

• However, the actual depreciation rate may vary based on the age and usage of the vehicle.

• Different types of ledgers include general ledger, accounts payable ledger, accounts receivable ledger, and cash ledger.

• General ledger contains all the financial transactions of a company, while accounts payable and receivable ledgers track the c...read more

Depreciation, amortization, impairment, G.P, EBIT, journal entries, and intercompany reconciliation explained.

• Depreciation is the allocation of the cost of tangible assets over their useful life.

• Amortization is the allocation of the cost of intangible assets over their useful life.

• Impairment is a reduction in the value of an asset due to a permanent decrease in its value.

• Gross Profit (G.P) is the difference between revenue and the cost of goods sold.

• EBIT (Earnings Before Inte...read more

Accruals are expenses incurred but not yet paid, depreciation is the allocation of the cost of an asset over its useful life, deferred revenue is payment received for goods or services not yet delivered, balance sheet reconciliation is the process of ensuring the accuracy of a company's financial records.

• Accruals are expenses that have been incurred but not yet paid for, they are recorded as liabilities on the balance sheet.

• Depreciation is the systematic allocation of the cos...read more

Provision is a specific amount set aside for a known liability, while reserves are general amounts set aside for unknown liabilities. Accumulated Depreciation is the total depreciation charged on an asset over time. Cash flow statement shows the inflow and outflow of cash during a specific period. Adjusting journals like Accrued Income and Outstanding Expenses are used to record income or expenses that have been earned or incurred but not yet received or paid.

• Provision is a s...read more

Child Queue and Parent Queue are data structures used in multi-level queue scheduling algorithms.

• Child Queue contains processes with the same priority level as the parent queue but with shorter burst time.

• Parent Queue contains processes with different priority levels.

• Processes move from child queue to parent queue when their burst time exceeds a certain limit.

• Examples of multi-level queue scheduling algorithms are Round Robin, Priority Scheduling, and Shortest Job First.

Basic journal entries in accounting are essential transactions recorded in a company's general ledger.

• Journal entry for revenue recognition: Debit Accounts Receivable, Credit Revenue

• Journal entry for expenses: Debit Expense, Credit Accounts Payable

• Journal entry for depreciation: Debit Depreciation Expense, Credit Accumulated Depreciation

• Journal entry for inventory: Debit Inventory, Credit Accounts Payable

To calculate a rate in Excel, use the formula: Rate = (Value 1 / Value 2) * 100

• Enter the values you want to calculate the rate for in separate cells

• In a new cell, use the formula: Rate = (Value 1 / Value 2) * 100

• Value 1 is the numerator and Value 2 is the denominator

• Multiply the result by 100 to get the rate percentage

• For example, if Value 1 is 50 and Value 2 is 100, the formula would be: (50 / 100) * 100 = 50%

Product costing is the process of determining the total expenses incurred in producing a product.

• It involves identifying and calculating all the costs associated with producing a product.

• These costs can include direct materials, direct labor, and overhead expenses.

• Product costing helps companies determine the price at which they should sell their products to make a profit.

• It also helps in identifying areas where costs can be reduced to increase profitability.

• Examples of produ...read more

An asset under lease is accounted for by recognizing it as a right-of-use asset and a lease liability.

• The asset is initially measured at the present value of lease payments

• Subsequently, the asset is amortized over the lease term

• The lease liability is also initially measured at the present value of lease payments

• Subsequently, the lease liability is reduced as lease payments are made

• The interest expense on the lease liability is recognized over the lease term

Cash application is the process of applying incoming payments to the correct customer accounts in a company's financial records.

• Cash application involves matching received payments with corresponding invoices or accounts receivable entries.

• It ensures accurate recording of payments and reduces errors in financial reporting.

• Automated cash application software can streamline the process and improve efficiency.

• Reconciliation of bank statements with cash application records is an ...read more

Prepaid entry is the amount received in advance for goods or services. Outstanding refers to the amount owed by customers for goods or services already provided.

• Prepaid entry is recorded as a liability on the balance sheet until the goods or services are delivered.

• Outstandings are recorded as accounts receivable on the balance sheet until the customer pays.

• Prepaid entry and outstandings are important for cash flow management and financial planning.

• Example: A customer pays in ...read more

Cash application is the process of recording and tracking incoming payments from customers.

• It involves matching payments received with outstanding invoices

• It ensures accurate and timely recording of cash transactions

• It helps in identifying and resolving discrepancies in payments

• Examples include using accounting software to record and reconcile payments

• It is an important function in managing cash flow and financial reporting

To track the utilization of each process, we can use various methods such as time tracking, task management tools, and performance metrics.

• Implement time tracking software to monitor the time spent on each process.

• Use task management tools to assign and track progress on specific processes.

• Establish performance metrics and regularly measure and analyze them to evaluate process utilization.

• Conduct regular process audits to identify bottlenecks and areas of improvement.

• Collect ...read more

Accruals are expenses incurred but not yet paid, while deferred revenue expenditure is a cost that is incurred but not recognized as an expense in the current accounting period.

• Accruals refer to expenses that have been incurred but not yet paid for, and are recorded as liabilities on the balance sheet.

• Deferred revenue expenditure refers to costs that are incurred but not recognized as expenses in the current accounting period, and are carried forward to future periods.

• Accrual...read more

Deprecation is the decrease in value of an asset over time. Accumulated depreciation is the total amount of depreciation recorded for an asset.

• Deprecation is a non-cash expense that reflects the wear and tear of an asset over time

• It is recorded in the income statement and reduces the value of the asset on the balance sheet

• Accumulated depreciation is the total amount of depreciation recorded for an asset since it was acquired

• It is a contra-asset account and is subtracted from ...read more

A contingent liability is a potential liability that may occur depending on the outcome of a future event.

• Contingent liabilities are not recorded on the balance sheet but disclosed in the footnotes.

• Examples include pending lawsuits, warranties, and guarantees.

• The likelihood of the contingent liability and the amount involved must be assessed.

Different types of expenses and entries

• Expenses can be categorized as direct or indirect

• Direct expenses are related to production or sales

• Indirect expenses are related to administration or overheads

• Entries can be made in the books of accounts for each expense

• Examples of direct expenses include raw materials, labor, and packaging

• Examples of indirect expenses include rent, utilities, and salaries

• Entries can be made as debit or credit depending on the nature of the expense

SLA Input and output refers to the service level agreement criteria for the inputs and outputs of a process or system.

• SLA Input includes the requirements, expectations, and specifications for the inputs needed for a process or system.

• SLA Output includes the expected outcomes, deliverables, and performance standards for the outputs of a process or system.

• Examples of SLA Input can be customer data, project requirements, or raw materials.

• Examples of SLA Output can be completed p...read more

P2P process involves matching purchase orders with invoices to ensure accuracy and prevent fraud.

• 2 way match involves matching the invoice to the purchase order to ensure the prices and quantities match.

• 3 way match involves matching the invoice to the purchase order and receiving report to ensure all three documents align.

• PO invoices are matched against the purchase order, while Non-PO invoices are matched based on other criteria such as vendor agreement or contract terms.

Intercompany transactions are recorded using intercompany accounts to eliminate double counting and ensure accurate financial reporting.

• Create intercompany accounts for each entity involved in the transaction

• Record the transaction in the respective intercompany accounts

• Ensure that the total intercompany transactions balance out to zero

• Use elimination entries to remove intercompany transactions from consolidated financial statements

DSO stands for Days Sales Outstanding. It is the average number of days it takes for a company to collect payment after a sale.

• DSO is an important metric for measuring a company's cash flow and liquidity.

• A high DSO indicates that a company is taking longer to collect payment from its customers, which can lead to cash flow problems.

• A low DSO indicates that a company is collecting payment quickly, which can improve cash flow and liquidity.

• DSO can vary by industry and company si...read more

The golden rule of accounting states that debits must equal credits in every financial transaction.

• The golden rule is also known as the double-entry accounting system.

• It ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• For every debit entry made, there must be an equal credit entry.

• This principle helps maintain accuracy and integrity in financial records.

• Example: If a company purchases inventory for $1,000, there will be a debit to Invento...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life. Journal entry records the depreciation expense.

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

• It is recorded on the income statement to match the expense with the revenue generated by the asset.

• The journal entry for depreciation involves debiting the depreciation expense account and crediting the accumulated depreciation account.

• For example, if a ...read more

Matching the invoice details with the purchase order and goods received is a critical check point in invoice processing.

• Verify that the invoice amount matches the purchase order amount

• Check that the goods received match the items listed on the invoice

• Ensure that the payment terms and due date are accurate

• Confirm that the invoice number and date are correct

• Validate that the vendor details are accurate

Bill to address is where the invoice is sent, while ship to address is where the physical goods are delivered.

• Bill to address is the address where the invoice is sent for payment

• Ship to address is the address where the physical goods are delivered

• They can be the same or different depending on the situation

• For example, a company may bill to their headquarters but ship to a customer's location

Journal entry for credit notes is a record of reducing accounts receivable and increasing sales returns.

• Credit notes are used to reduce the amount owed by a customer due to returns or discounts.

• The journal entry for credit notes involves debiting the sales returns or sales allowances account and crediting accounts receivable or cash.

• For example, if a customer returns $100 worth of goods, the journal entry would be to debit sales returns or sales allowances for $100 and credit...read more

Latest amendments in co. law and Ind AS.

• The Companies (Amendment) Act, 2020 was introduced to decriminalize minor offences and promote ease of doing business.

• Ind AS 116, which deals with leases, was implemented from April 1, 2019.

• Ind AS 115, which deals with revenue recognition, was implemented from April 1, 2018.

• Ind AS 116 has a significant impact on the financial statements of companies, as it requires lessees to recognize all leases on their balance sheets.

• The latest amend...read more

Inter company transactions are financial activities between two or more entities within the same corporate group.

• Inter company transactions involve the transfer of goods, services, or money between different subsidiaries or divisions of the same parent company.

• These transactions are recorded in the financial statements of each entity involved to ensure accurate reporting.

• Examples include the sale of inventory from one subsidiary to another, the provision of services between d...read more

US Labor laws govern the rights and responsibilities of workers and employers in the United States.

• The Fair Labor Standards Act (FLSA) sets standards for minimum wage, overtime pay, and child labor.

• The Occupational Safety and Health Act (OSHA) ensures safe and healthy working conditions.

• The Family and Medical Leave Act (FMLA) provides eligible employees with unpaid leave for certain family and medical reasons.

• The National Labor Relations Act (NLRA) protects the rights of empl...read more

Trial balance is a list of all ledger accounts with their balances, while balance sheet is a financial statement showing assets, liabilities, and equity at a specific point in time.

• Trial balance is an internal document used to ensure the total debits equal total credits before preparing financial statements.

• Balance sheet is a snapshot of a company's financial position at a specific date, showing assets, liabilities, and equity.

• Trial balance is prepared before the balance shee...read more

A journal entry is made to record the sale of a fixed asset.

• Debit the Cash or Accounts Receivable account for the amount received from the sale

• Credit the Fixed Asset account for the original cost of the asset

• Credit the Accumulated Depreciation account for the accumulated depreciation on the asset

• Credit or debit any gain or loss on the sale of the asset

• Example: Debit Cash $10,000, Credit Fixed Asset $15,000, Credit Accumulated Depreciation $5,000

Substance over form and materiality are accounting principles that prioritize the economic reality of transactions.

• Substance over form means that the economic reality of a transaction should be considered over its legal form.

• Materiality means that only significant information should be reported in financial statements.

• Both principles are important in ensuring accurate and transparent financial reporting.

• For example, if a company leases a building but structures the lease as a...read more

Accruals are expenses incurred but not yet paid or revenue earned but not yet received.

• Accruals are a way of recognizing financial transactions in the period they occur, rather than when payment is made or received.

• They are necessary for accurate financial reporting and to match expenses with revenue.

• Examples of accruals include salaries owed to employees at the end of a pay period, but not yet paid, or revenue earned from a sale, but not yet received.

• Accruals are recorded as...read more

POs refer to purchase orders, invoice types vary based on the transaction, and BRS stands for bank reconciliation statement.

• POs are documents issued by a buyer to a seller indicating the type, quantity, and agreed price of products or services.

• Invoice types can include proforma, commercial, credit, debit, and self-billing invoices.

• BRS is a statement that compares the bank balance as per the company's records with the balance as per the bank statement.

SAP is a software used for managing business operations and customer relations.

• SAP stands for Systems, Applications, and Products in Data Processing.

• It is used for managing various business operations like finance, sales, inventory, etc.

• SAP software is used by many large organizations like Coca-Cola, IBM, etc.

• It helps in streamlining business processes and improving efficiency.

• SAP has various modules like SAP FI (Financial Accounting), SAP MM (Materials Management), etc.

Reconciling fixed assets involves verifying the accuracy of the fixed asset register with physical assets and financial records.

• Perform a physical inventory count of fixed assets to ensure they match the records

• Compare the fixed asset register with financial statements to identify any discrepancies

• Investigate any differences found and make necessary adjustments

• Update the fixed asset register with any changes made during the reconciliation process

VLOOKUP formula searches for a value in the first column of a table and returns a corresponding value in the same row.

• VLOOKUP formula syntax: =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup])

• SUBTOTAL formula calculates subtotals for a range of data. Syntax: =SUBTOTAL(function_num, ref1, [ref2], ...)

• Example of VLOOKUP formula: =VLOOKUP(A2, B2:C10, 2, FALSE)

• Example of SUBTOTAL formula: =SUBTOTAL(9, A2:A10)

O2C stands for Order to Cash, which is a set of business processes that involve receiving and fulfilling customer orders.

• O2C involves order processing, inventory management, invoicing, and receiving payments.

• It starts with receiving a customer order and ends with receiving payment for the order.

• Efficient O2C processes help improve cash flow and customer satisfaction.

• Examples of O2C software include SAP, Oracle E-Business Suite, and Salesforce.

Golden rules of accounting are basic principles to be followed while recording financial transactions.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

Going concern refers to a company's ability to continue operating in the foreseeable future.

• It is an accounting concept that assumes a company will continue to operate indefinitely

• It is important for financial reporting and analysis

• Factors that may affect going concern include financial performance, market conditions, and management decisions

• Example: If a company is consistently losing money and has a high level of debt, it may be at risk of not being a going concern

• Genpact i...read more

I am flexible with shift timings and can adapt to different schedules as required.

• I have experience working in different shifts during my previous job.

• I understand the importance of being available during peak hours and can adjust my schedule accordingly.

• I am willing to work overtime or on weekends if needed.

• I can quickly adapt to changes in shift timings and ensure smooth operations.

• I prioritize the needs of the team and the organization over personal preferences for shift t...read more

Clients are debited in the London premium advice note.

• The London premium advice note is a document used in the insurance industry to bill clients for premiums.

• Debits are made to the client's account for the amount owed.

• The London premium advice note is typically sent to the client on a monthly or quarterly basis.

• Debits may also be made for other charges, such as fees or commissions.

• The client's account is updated to reflect the debit.

• The London premium advice note is an impor...read more

Amortisation of prepaid refers to the process of gradually expensing out the cost of a prepaid expense over its useful life.

• Amortisation of prepaid is similar to depreciation for tangible assets, but it applies to intangible assets or prepaid expenses.

• It involves allocating the cost of the prepaid expense to the income statement over a specific period of time.

• Common examples of prepaid expenses that are amortised include prepaid insurance, prepaid rent, and prepaid subscripti...read more

Ind AS 15 specifies the criteria for recognizing revenue from contracts with customers.

• Identification of the contract with a customer

• Identification of the performance obligations in the contract

• Determination of the transaction price

• Allocation of the transaction price to the performance obligations

• Recognition of revenue when (or as) the entity satisfies a performance obligation

Balance sheet reconciliation is the process of comparing the balances in a company's financial records to ensure they match with external sources.

• It involves verifying the accuracy of the balance sheet accounts by comparing them to supporting documentation.

• Common items reconciled include cash, accounts receivable, accounts payable, and inventory.

• Reconciliation helps identify errors, discrepancies, or fraud in financial statements.

• It ensures that the financial statements prese...read more

Accrued income is income that has been earned but not yet received or recorded in the books.

• Accrued income is recognized when it is earned, regardless of when it is actually received.

• It is recorded as a current asset on the balance sheet.

• Common examples include interest income, rent income, and commission income.

• Accrued income is typically recorded through adjusting journal entries at the end of an accounting period.

VLOOKUP and HLOOKUP are Excel functions used to search for a value in a table and return a corresponding value.

• VLOOKUP searches for a value in the first column of a table and returns a value in the same row from a specified column.

• HLOOKUP searches for a value in the first row of a table and returns a value in the same column from a specified row.

• Both functions are commonly used in Excel for data analysis and lookup purposes.

A debit note is a document used to inform a buyer that a debit has been made to their account.

• It is issued by a seller to a buyer when there is a discrepancy in the invoice amount

• It is used to notify the buyer of additional charges or adjustments to the original invoice

• It is also used to correct errors made in the original invoice

• Debit notes are commonly used in business-to-business transactions

A capitalised entry is a journal entry where the first letter of each word is in uppercase.

• Each word in the entry starts with a capital letter.

• Used in accounting to record transactions.

• Example: Cash Account Dr. To Sales Account Cr.

Accrual accounting is a method of accounting where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

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

• Expenses are recorded when they are incurred, not necessarily when they are paid.

• Accrual accounting provides a more accurate representation of a company's financial position.

• It follows the matching principle, where revenues and expenses are mat...read more

Three way match is a process used in accounting to ensure that the purchase order, invoice, and receiving report all match before payment is made.

• Three way match involves comparing the purchase order, invoice, and receiving report to ensure accuracy.

• It helps prevent errors, fraud, and discrepancies in the payment process.

• If all three documents match, the payment can be processed.

• Example: A company orders 100 units of a product, receives 100 units, and is invoiced for 100 unit...read more

Accrual refers to the recognition of revenue or expenses that have been earned or incurred but not yet received or paid.

• Accrual accounting recognizes revenue and expenses when they are earned or incurred, regardless of when payment is received or made.

• Accruals are recorded as adjusting entries in the financial statements.

• Examples of accruals include accounts receivable, accounts payable, and accrued expenses.

• Accruals are important for matching revenue and expenses in the corr...read more