CloudRaptor Interview Questions and Answers

Journal entries for sale of assets with WDV more than sale value.

• Debit the asset account for the WDV amount

• Credit the accumulated depreciation account for the total depreciation

• Credit the asset disposal account for the sale value

• If there is a loss, debit the profit and loss account for the difference

• If there is a gain, credit the profit and loss account for the difference

No, reconciling balance sheet category of accounts is different from reconciling Profit and Loss.

• Reconciling balance sheet category of accounts involves ensuring that the assets, liabilities, and equity accounts are in balance.

• Reconciling Profit and Loss involves ensuring that the revenue and expense accounts are accurate and complete.

• While both are important for financial reporting, they are separate processes with different objectives.

• For example, reconciling balance sheet ...read more

Fixed Asset Accounting involves tracking and managing the lifecycle of tangible assets.

• Acquisition of assets through purchase or construction

• Recording asset details such as cost, useful life, and depreciation method

• Tracking changes in asset value and depreciation over time

• Disposal of assets through sale or retirement

• Reconciliation of asset records with general ledger

• Examples include buildings, equipment, and vehicles

I am preparing control and audit schedules to ensure compliance and identify areas for improvement.

• Identifying key areas for audit and control

• Developing a schedule for regular audits and controls

• Ensuring compliance with regulations and company policies

• Analyzing data to identify areas for improvement

• Collaborating with other departments to implement changes

• Providing regular reports to management on audit and control findings

Understanding accounting concepts and their practical application in difficult situations.

• Accounting concept of matching principle: Ensuring expenses are matched with revenues in the same period.

• Applicability: Used to accurately report financial performance and make informed business decisions.

• Difficult situation handled: Resolving discrepancies in financial statements by conducting thorough analysis and adjustments.

• Example: Identifying and correcting errors in revenue recogn...read more

Accrual is the process of recognizing revenue or expenses when they are incurred, regardless of when payment is received or made.

• Accrual accounting is the opposite of cash accounting

• It is used to match revenue and expenses to the period in which they were incurred

• Examples include recognizing revenue when a service is performed, even if payment is not received until later

• Accrued expenses include salaries owed to employees at the end of a pay period