10+ Taxan Gulf Fzco Interview Questions and Answers

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

• There are three golden rules of accounting: Debit the receiver, Credit the giver, Debit what comes in, Credit what goes out, and Debit all expenses and losses, Credit all incomes and gains.

• These rules ensure that every transaction is recorded accurately and consistently.

• For example, if a company receives cash from a customer, the cash account is debited (increased) and the accou...read more

Purchase entry is the process of recording the details of goods or services purchased by a company.

• It involves recording the date of purchase, vendor name, invoice number, and amount paid.

• The purchase entry is used to update the company's inventory and accounts payable.

• It is an important step in the procurement process and helps in tracking expenses.

• For example, if a company purchases office supplies, the purchase entry will include details such as the quantity, unit price, a...read more

A personal account is a financial account that belongs to an individual for personal use.

• A personal account is used for personal expenses and savings

• It is not meant for business or commercial transactions

• Examples include savings account, checking account, and credit card account

Overvalued closing stock can lead to inflated assets and profits, impacting financial statements and decision-making.

• Overstated assets on the balance sheet

• Inflated profits on the income statement

• Misleading financial ratios and performance indicators

• Potential tax implications due to higher reported profits

• Loss of investor confidence if discovered

• May require restatement of financial statements

• Example: If a company overvalues its closing stock by $10,000, it will show higher ass...read more

Mean concepts of accounting refer to the basic principles and guidelines that govern the field of accounting.

• Mean concepts include principles like accrual, consistency, materiality, and prudence.

• These concepts help ensure that financial statements are prepared accurately and fairly represent the financial position of a company.

• For example, the accrual concept states that revenue and expenses should be recognized when they are incurred, regardless of when cash is exchanged.

• Con...read more

Accrual concept refers to the accounting principle where revenues and expenses are recognized when they are incurred, regardless of when cash is exchanged.

• Accrual concept ensures that financial statements reflect the true financial position of a company.

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

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

• Accrual accounting is in contrast to cash accounting, where tran...read more

Accounting principles are the guidelines and rules that companies must follow when preparing financial statements.

• Accounting principles are the rules and guidelines that companies must follow when preparing financial statements.

• They ensure consistency and accuracy in financial reporting.

• Examples include the principle of conservatism, which states that companies should record expenses and liabilities as soon as possible, and the principle of materiality, which states that only...read more

Revenue reconciliation is the process of comparing financial records to ensure they match and identifying any discrepancies.

• Revenue reconciliation involves comparing revenue records from different sources such as sales, invoices, and payments.

• It helps in identifying any discrepancies or errors in the revenue records.

• The process ensures that all revenue transactions are accurately recorded and accounted for.

• Revenue reconciliation is important for financial reporting and ensuri...read more

Accrual expenses are costs that have been incurred but not yet paid for.

• Accrual expenses are recorded in the financial statements to match expenses with revenues in the same accounting period.

• These expenses are recognized when they are incurred, regardless of when they are paid.

• Common examples of accrual expenses include salaries, interest, and utilities.

• Accrual expenses help provide a more accurate representation of a company's financial position.

• Accrual accounting follows t...read more

R2R procedure refers to Record to Report process which involves the end-to-end activities related to financial reporting.

• R2R process includes tasks such as journal entries, reconciliations, financial reporting, and closing activities.

• It ensures accurate and timely recording of financial transactions in the books of accounts.

• The process helps in providing insights into the financial performance of the organization.

• Examples of R2R activities include preparing balance sheets, in...read more

Bank reconciliation is the process of comparing and matching the balances in a company's accounting records with the bank statement.

• Bank reconciliation ensures that the company's records accurately reflect the transactions and balances in its bank account.

• It involves comparing the company's cash account balance with the bank statement balance and identifying any discrepancies.

• Common reasons for discrepancies include outstanding checks, deposits in transit, bank fees, and erro...read more

Reconciliation is the process of comparing two sets of records to ensure they are in agreement and resolving any discrepancies.

• Reconciliation involves matching transactions or balances between different sources, such as bank statements and accounting records.

• It helps identify errors, fraud, or missing transactions.

• Reconciliation is important for ensuring accuracy and integrity of financial data.

• Examples include reconciling bank statements with cash records, credit card statem...read more

Balance sheet is a financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

• It provides a snapshot of a company's financial position

• Assets are listed on one side, liabilities and equity on the other

• The balance sheet equation is Assets = Liabilities + Shareholders' Equity

• It helps investors and analysts assess the financial health of a company

R2R stands for Record to Report, which is a finance and accounting process that involves collecting, processing, and reporting financial information.

• R2R involves tasks such as journal entries, reconciliations, and financial reporting

• It helps in ensuring accurate and timely financial information for decision-making

• Examples of R2R activities include preparing financial statements, analyzing financial data, and ensuring compliance with accounting standards

AP stands for Accounts Payable.

• AP is a financial term used in accounting.

• It refers to the amount of money a company owes to its suppliers or vendors for goods or services received.

• AP is recorded as a liability on the company's balance sheet.

• It is an important part of the procure-to-pay process.

• AP involves tasks such as invoice processing, payment processing, and vendor management.

The golden rule of accounts is to debit the receiver and credit the giver.

• Debit the receiver, credit the giver

• Assets = Liabilities + Equity

• Every transaction has equal debits and credits