Genpact Management Trainee Interview Questions, Process, and Tips

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

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, whi...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 wh...read more

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, ...read more

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.

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 purcha...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 crediti...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.

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

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 inclu...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 ...read more

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 ben...read more