1000+ Ethics Solution Interview Questions and Answers

RTR stands for Record to Report, which is a finance and accounting process that involves recording financial transactions and preparing financial statements.

• Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

• Types of depreciation include straight-line, declining balance, and sum-of-the-years'-digits.

• Journal entries for depreciation involve debiting the depreciation expense account and crediting the accumulated depr...read more

Explaining color to a person blind since birth

• Color is a visual sensation perceived by the eyes

• Red is a warm color that is often associated with passion, love, and anger

• It is the color of blood and fire

• It can be described as a feeling of warmth or intensity

• It is often used to draw attention or indicate danger

• It is the opposite of green on the color wheel

Financial statements are reports that show the financial performance and position of a company.

• Financial statements include the balance sheet, income statement, and cash flow statement.

• They provide information on a company's revenue, expenses, assets, liabilities, and equity.

• Investors and analysts use financial statements to evaluate a company's financial health and make investment decisions.

• Examples of financial statements include annual reports, quarterly reports, and 10-K ...read more

Creditor is a person or entity to whom money is owed. Golden rules of accounting are basic principles to maintain financial records. Expenditure account records expenses while saving account records savings.

• A creditor is someone who is owed money by a debtor

• Golden rules of accounting are: a) Debit the receiver, credit the giver b) Debit what comes in, credit what goes out c) Debit expenses and losses, credit income and gains

• Expenditure account records all expenses incurred by...read more

Questions related to accounting principles and practices

• The three golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; debit all expenses and losses, credit all incomes and gains

• Fictitious assets are intangible assets that have no physical existence, such as goodwill, patents, trademarks, and copyrights

• Contingent liabilities are potential liabilities that may or may not occur in the future, such as lawsuits, warranti...read more

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

To prepare invoices account, gather all relevant information, create a template, input details accurately, calculate totals, and review for accuracy.

• Gather all necessary information such as customer details, products/services provided, quantities, prices, and any applicable taxes or discounts.

• Create a standardized template or use accounting software to input the invoice details.

• Ensure accuracy by double-checking all information entered, including customer names, addresses, an...read more

3way and 2way matches are methods used in accounts payable to match invoices with purchase orders and receiving reports.

• 2way match involves matching the invoice with the purchase order.

• 3way match involves matching the invoice with the purchase order and the receiving report.

• 2way match is used for non-inventory items while 3way match is used for inventory items.

• Example: A company orders 100 units of a product from a supplier. The supplier sends the product and the company rece...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

Yes, employees can get transfers to other countries like foreign and gulf.

• Employees can be transferred to other countries if there is a need for their expertise or if there are job opportunities available.

• Transfers to foreign countries may require additional documentation and visa processes.

• Gulf countries often have a high demand for skilled professionals, making transfers more likely.

• The decision to transfer an employee depends on the company's policies, the employee's quali...read more

Balance sheet shows a company's financial position at a specific point in time.

• It lists a company's assets, liabilities, and equity.

• It helps investors and creditors evaluate the financial health of a company.

• It is prepared at the end of each accounting period.

• Example: A balance sheet may show that a company has more liabilities than assets, indicating financial trouble.

• Example: A balance sheet may show that a company has a high amount of equity, indicating financial stability...read more

Technical questions related to DNS, File server, Quota Policy, DHCP, Subnetting, IP ranges, Protocol, OSI Model, topology.

• DNS: query, zones, records, stub zone, PTR, Point record, manually creating records

• File server: managing files and folders, permissions, sharing

• Quota Policy: setting limits on disk space usage

• DHCP: assigning IP addresses to devices on a network

• Subnetting: dividing a network into smaller subnetworks

• IP ranges: specifying a range of IP addresses for a network...read more

Answers to common accounting questions including financial, cost, and management accounting, as well as ratios and golden rules.

• Financial accounting is the process of recording, summarizing, and reporting financial transactions of a business.

• Cost accounting involves analyzing the costs of producing a product or service to help with decision-making and cost control.

• Management accounting provides financial information to help with planning, controlling, and decision-making with...read more

Answering questions related to accounting and journal entries.

• Debitor is a person or entity who owes money to another person or entity.

• Depreciation is the decrease in value of an asset over time due to wear and tear or obsolescence.

• The journal entry for sending goods as donation would be to debit the donation expense account and credit the inventory account for the cost of the goods donated.

PO stands for Purchase Order, NPO stands for Non-Profit Organization. 2-way matching is the process of comparing the purchase order and invoice, while 3-way matching involves comparing the purchase order, invoice, and receiving report.

• PO is a document issued by a buyer to a seller, specifying the details of goods or services to be purchased

• NPO is an organization that operates for purposes other than making a profit

• 2-way matching ensures that the quantity and price on the invo...read more

Prepaid accounts are advance payments made by a customer for goods or services that will be delivered or performed in the future.

• Prepaid accounts are recorded as a current asset on the balance sheet.

• Journal entry for prepaid accounts involves debiting the prepaid account and crediting the cash account.

• Example: A customer pays $1,200 in advance for a 12-month subscription. The journal entry would be: Debit Prepaid Subscription $1,200 and Credit Cash $1,200.

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

Server is a computer program or device that provides functionality to other programs or devices.

• A server is a computer that stores and manages data for other computers on a network.

• Examples of servers include web servers, email servers, and file servers.

• Servers can be physical machines or virtual machines.

• Dora is not related to servers or IT.

• SLA stands for Service Level Agreement and is a contract between a service provider and a customer that outlines the level of service th...read more

The AML KYC Analyst role involves identifying and preventing money laundering and terrorist financing activities by implementing sanctions and regulatory compliance measures.

• Sanctions are measures taken by governments or international organizations to restrict or prohibit certain activities or transactions with specific countries, entities, or individuals.

• Types of sanctions include economic sanctions, trade sanctions, financial sanctions, and targeted sanctions.

• Money launderi...read more

BPO stands for Business Process Outsourcing. It is a practice of hiring another company to perform a business process for you.

• BPOs provide cost-effective solutions for businesses to outsource non-core functions such as customer service, data entry, and accounting.

• BPOs can be onshore, nearshore, or offshore depending on the location of the outsourcing company.

• Examples of BPOs include Accenture, IBM, and Infosys.

• BPOs can help businesses focus on their core competencies and impr...read more

Answers to common accounts payable terms

• 2 way match: matching the invoice to the purchase order

• 3 way match: matching the invoice to the purchase order and receipt of goods

• P2P cycle: Procure to Pay cycle, the process of purchasing goods or services

• Purchase requisition: a document used to request goods or services

• Invoice: a bill for goods or services received

• Purchase order: a document used to order goods or services

A network printer is a printer that is connected to a network and can be accessed by multiple users.

• A network printer can be connected to a LAN or WAN.

• It allows multiple users to print from a single printer.

• It can be accessed through a print server or directly through the network.

• Examples of network printers include laser printers, inkjet printers, and multifunction printers.

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

JE tracker is a tool used in accounting to record journal entries and their details.

• JE tracker stands for Journal Entry tracker.

• It is used to record journal entries and their details such as date, account name, debit/credit amount, and description.

• It helps in tracking and managing journal entries for accurate financial reporting.

• Examples of information recorded in JE tracker include adjusting entries, accruals, and deferrals.

Record to report process involves invoice processing, journal voucher creation, and petty cash management.

• Invoice processing involves receiving and verifying invoices, coding them, and entering them into the system.

• Journal voucher creation involves recording financial transactions in the general ledger.

• Petty cash management involves maintaining a small amount of cash for minor expenses.

• All these processes are part of the record to report cycle, which is the process of recordi...read more

Basic accounting concepts and entries

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

• Journal entry is the recording of a financial transaction in a journal

• Depreciation is the decrease in value of an asset over time

• Accrual income is income that has been earned but not yet received

• Income is money earned by a business, while expenses are the costs incurred by the business

• Debit and credit are the two sides of a financial transacti...read more

In my previous organization, we followed a three-way matching process for invoice processing.

• We would match the invoice with the purchase order and the goods receipt to ensure accuracy.

• If there were any discrepancies, we would investigate and resolve them before processing the invoice.

• We also had a system in place for routing invoices to the appropriate approvers based on the amount and department.

• Once approved, the invoices were entered into the accounting system for payment...read more

Deferred refers to an expense or revenue that has been recognized but not yet paid or received, while prepaid refers to an expense that has been paid in advance but not yet incurred.

• Deferred expenses or revenues are recognized on the balance sheet as liabilities or assets, respectively.

• Prepaid expenses are recognized on the balance sheet as assets.

• Examples of deferred expenses include rent, salaries, and interest payments.

• Examples of prepaid expenses include insurance premium...read more

Reconciling vendor statements of accounts is important for accuracy and financial control.

• Ensures accuracy of financial records

• Identifies discrepancies and errors

• Helps in detecting fraud or unauthorized charges

• Maintains good vendor relationships

• Assists in budgeting and forecasting

• Provides a clear picture of outstanding liabilities

AP is Accounts Payable, PTP is Procure to Pay. Cycle of AP includes invoice processing, approval, and payment.

• AP is the process of managing and paying invoices from vendors

• PTP is the end-to-end process of procuring goods and services, from identifying the need to paying the vendor

• Cycle of AP includes invoice receipt, verification, approval, and payment

• Accruals are expenses that have been incurred but not yet paid

• 2-way matching is comparing the invoice to the purchase order, w...read more

Yes, insurance is a contract between an individual and an insurance company to protect against financial loss.

• Insurance can cover various aspects such as health, life, property, and auto.

• Premiums are paid by the individual to the insurance company in exchange for coverage.

• Claims can be made by the individual in case of an event that is covered by the insurance policy.

• Examples of insurance companies include State Farm, Allstate, and Geico.

I look for vendors who have a good reputation, competitive pricing, and a track record of delivering quality work.

• Reputation in the industry

• Competitive pricing

• Track record of delivering quality work

• Ability to meet deadlines

• Flexibility to accommodate changes

• Good communication skills

• Availability of necessary resources

• Experience in the relevant field

• References from previous clients

• Financial stability

P2P stands for Procure-to-Pay. It is a cycle that involves the entire process of purchasing goods or services.

• P2P cycle starts with identifying the need for a product or service

• It then involves selecting a vendor, negotiating prices, and creating a purchase order

• Goods or services are received and verified against the purchase order

• Invoices are received and matched against the purchase order and goods receipt

• Payment is made to the vendor

• Examples of P2P software include SAP Ari...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

If we had additional resources, we would optimize our processes, improve efficiency, and enhance productivity.

• Invest in training and development programs for employees to enhance their skills and knowledge

• Upgrade technology and software systems to streamline operations

• Expand our team to handle increased workload and improve turnaround times

I used t-code F110 for payment processing in my previous organization.

• T-code F110 is used for automatic payment processing in SAP.

• It can be used for both outgoing and incoming payments.

• It allows for the creation of payment proposals and the processing of payments in batches.

• F110 can also be used to print payment advice notes and generate payment summaries.

• I have experience using F110 to process vendor payments and employee reimbursements.

Debit cards offer convenience and security but also come with potential risks and limitations.

• Advantages: Convenient for everyday purchases, no need to carry cash, accepted worldwide, helps track spending, can earn rewards.

• Disadvantages: Risk of overspending, potential for fraud or theft, limited consumer protection compared to credit cards, fees for certain transactions, may not offer rewards or cashback.

Major roles & responsibilities in Accounts Payable process include invoice processing, vendor management, payment processing, and reconciliation.

• Invoice processing: Receiving, verifying, and recording invoices from vendors.

• Vendor management: Communicating with vendors, resolving discrepancies, and maintaining vendor records.

• Payment processing: Ensuring timely and accurate payments to vendors.

• Reconciliation: Matching invoices with purchase orders and receipts to ensure accurac...read more

To withstand market conditions, businesses can diversify their offerings, cut costs, and focus on customer satisfaction.

• Diversify product or service offerings to appeal to a wider range of customers

• Reduce costs by streamlining operations and negotiating with suppliers

• Focus on customer satisfaction to retain existing customers and attract new ones

• Stay up-to-date on industry trends and adapt to changes quickly

• Invest in marketing and advertising to increase brand awareness and a...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

Customer service involves providing assistance and support to customers before, during, and after a purchase.

• Customer service is about meeting the needs and expectations of customers

• It involves effective communication and problem-solving skills

• Customer service representatives should be empathetic and patient

• Examples: resolving complaints, answering inquiries, providing product information

Accounts payable is the amount owed by a company to its suppliers, while accounts receivable is the amount owed to a company by its customers.

• Accounts payable represents the company's liabilities, while accounts receivable represents the company's assets.

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

• Accounts payable is related to the company's purchases and expenses, while accounts receivable is related to ...read more

Vendor reconciliation is the process of comparing the vendor's account balance with the company's records to ensure accuracy.

• Gather all invoices, receipts, and payment records related to the vendor

• Compare the vendor's statement with the company's records to identify discrepancies

• Investigate and resolve any discrepancies by contacting the vendor or reviewing transaction details

• Adjust the accounts accordingly to reflect the correct balance

• Ensure all outstanding payments are acc...read more

To convince a student to study more after passing 12th

• Highlight the benefits of further education

• Discuss potential career opportunities and growth

• Emphasize the importance of continuous learning

• Provide examples of successful individuals who continued their education

• Offer guidance and support in choosing the right educational path

Banking is a financial service that deals with money transactions. KYC stands for Know Your Customer. Debit means money out, credit means money in.

• Banking involves managing money, loans, and investments.

• KYC is a process of verifying the identity of customers to prevent fraud and money laundering.

• Debit refers to money being taken out of an account, while credit refers to money being added to an account.

• Examples of banking services include savings accounts, loans, and credit ca...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

Credit note is a document issued by a seller to a buyer reducing the amount owed, while Vendor Debit note is a document issued by a buyer to a seller for overbilling or return of goods.

• Credit note reduces the amount owed by the buyer to the seller.

• Vendor Debit note is issued by the buyer to the seller for overbilling or return of goods.

• P2P cycle refers to the Procure-to-Pay cycle in which goods or services are procured and payments are made.

• Accounting golden rules include Deb...read more

A Purchase Order is a document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

• A Purchase Order is a legally binding document

• It specifies the details of the products or services being purchased

• It includes quantities, prices, delivery dates, and terms of payment

• It serves as a record of the transaction between the buyer and seller

• Examples: PO#1234 for 100 units of Product A at $10 each, to be delivered by 01/01/2023

Content moderation involves reviewing user-generated content, management involves overseeing content strategy and production, and writing involves creating original content.

• Content moderation involves reviewing user-generated content for compliance with community guidelines and legal requirements.

• Content management involves overseeing content strategy, production, and distribution across various channels.

• Writing involves creating original content, such as articles, blog posts...read more

Trial balance is a bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit columns to ensure they are equal.

• Trial balance is prepared periodically, usually at the end of a reporting period.

• It helps in detecting errors in the accounting process by ensuring that debits equal credits.

• If the trial balance does not balance, it indicates there are errors in the accounting records that need to be corrected.

• Example: If the total debits are $10,000 a...read more

Accounts payable and accounts receivable are both essential components of a company's financial management.

• Both involve tracking and managing financial transactions.

• Both are part of the company's balance sheet.

• Both require accurate record-keeping and reconciliation.

• Both impact cash flow and financial stability.

• Both involve communication and coordination with vendors or customers.

• Both play a role in financial analysis and decision-making.

• Both require attention to detail and ad...read more

Answers to accounting related questions for Process Developer role.

• Deferred revenue is the revenue received in advance for goods or services that are yet to be delivered.

• Prepaid expenses are expenses paid in advance for goods or services that are yet to be received.

• Accumulated depreciation is the total depreciation charged on a fixed asset over its useful life.

• Account payable reconciliation is the process of matching the accounts payable balance in the general ledger with the...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 process of spreading the cost of a tangible asset over its useful life.

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

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

• Both methods help to allocate the cost of an asset over its useful lif...read more

Vendor management involves overseeing relationships with suppliers to ensure goods and services are delivered efficiently and cost-effectively.

• Vendor management includes activities such as vendor selection, contract negotiation, performance evaluation, and relationship management.

• In SAP, the T-code for vendor creation is XK01.

• Vendor management helps organizations optimize their supply chain, reduce costs, and improve quality.

• Effective vendor management requires clear communic...read more

Company accounts in EXCL can be used for financial management and analysis.

• Company accounts in EXCL can be used to track expenses and revenue.

• They can be used to create financial reports and analyze financial data.

• Company accounts can also be used to manage budgets and forecast future financial performance.

• Examples of company accounts in EXCL include balance sheets, income statements, and cash flow statements.

Content moderation refers to the process of monitoring and reviewing user-generated content to ensure it complies with guidelines and policies.

• Content moderation involves reviewing and filtering user-generated content.

• It is done to ensure compliance with community guidelines and policies.

• Moderators assess content for inappropriate or harmful elements.

• Examples include reviewing social media posts, comments, images, videos, and forum discussions.

• Moderators may remove or flag co...read more

The appropriate verb for the blanks is 'is'.

• The verb 'is' is used to describe a state or condition of something.

• Example: The sky is blue.

• Example: The cat is sleeping.

Debit is an entry that represents an increase in assets and a decrease in liabilities. Credit is the opposite.

• Debit is used to record an increase in assets or a decrease in liabilities.

• Credit is used to record a decrease in assets or an increase in liabilities.

• Debit is on the left side of an account, while credit is on the right side.

• Debit balances are positive, while credit balances are negative.

• Examples: Debit - cash received, Credit - cash paid out.

I can improve as a Fraud Analyst by enhancing my data analysis skills, staying updated on fraud trends, and collaborating with other departments.

• Enhance data analysis skills through additional training or courses

• Stay updated on fraud trends and techniques through continuous learning and research

• Collaborate with other departments such as IT and finance to improve fraud detection and prevention

• Implement new technologies and tools to enhance fraud detection capabilities

Types of auto insurance and their coverage

• Liability insurance: covers damages to other people's property and injuries to others

• Collision insurance: covers damages to your own car in case of an accident

• Comprehensive insurance: covers damages to your car from non-collision incidents like theft, fire, or natural disasters

• Personal injury protection: covers medical expenses for you and your passengers

• Uninsured/underinsured motorist insurance: covers damages and injuries caused by ...read more

The source row will be treated as an update, but the target object will be deleted.

• The session level property 'Treat source row as Update' will be applied to the source row.

• The target object will be deleted regardless of the update status of the source row.

• This can result in data loss if the source row contains important information.

Migrating AD involves backing up and restoring data, transferring FSMO roles, and creating partitions in the AD database.

• To migrate AD, first backup the data on the legacy server and restore it on the new server.

• Transfer FSMO roles to the new server to ensure it has the necessary authority.

• Create partitions in the AD database to organize and manage data more efficiently.

• FSMO stands for Flexible Single Master Operations and includes five roles: Schema Master, Domain Naming Mas...read more

Setup microservice testing and deployment using Kubernetes, containers, Jenkins, and Cloud services.

• Create a Kubernetes cluster on a Cloud provider

• Build Docker containers for each microservice

• Create a Jenkins pipeline for testing and deployment

• Use Kubernetes to deploy and manage the containers

• Use Cloud services for load balancing, monitoring, and scaling

Bank reconciliation ensures accuracy of bank transactions. Profit and loss account shows financial performance of a company.

• Bank reconciliation matches the bank statement with the company's records to identify any discrepancies.

• It helps to ensure the accuracy of bank transactions and prevent fraud.

• Profit and loss account shows the financial performance of a company over a period of time.

• It includes all the revenues and expenses of the company and calculates the net profit or ...read more

Yes, Genpact is a very good organization to work for.

• Genpact offers a positive work environment with opportunities for growth and development.

• The company has a strong focus on employee satisfaction and work-life balance.

• Genpact provides competitive salaries and benefits to its employees.

• The organization values diversity and inclusion, fostering a supportive and inclusive culture.

• Genpact has a global presence and offers a wide range of career opportunities.

• Employees at Genpact...read more

To highly satisfy a customer, one can provide excellent customer service, listen actively to their needs, and go above and beyond to exceed their expectations.

• Provide prompt and courteous service

• Listen actively to their needs and concerns

• Offer personalized solutions and recommendations

• Go above and beyond to exceed their expectations

• Follow up to ensure their satisfaction

• Handle any issues or complaints promptly and professionally

The premium after a 20% discount on $100 insurance premium will be $80.

• Calculate 20% of $100 (20% of 100 = 0.20 * 100 = $20)

• Subtract the discount from the original premium ($100 - $20 = $80)

Money laundering is the process of making illegally obtained money appear legal by hiding its true source.

• Money laundering involves three stages: placement, layering, and integration.

• Anti money laundering (AML) refers to laws and regulations designed to prevent money laundering.

• Customer Due Diligence (CDD) is the process of verifying the identity of clients to prevent money laundering.

• Politically Exposed Persons (PEP) are individuals who are entrusted with prominent public fu...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

Golden rule of accounting is to debit the receiver and credit the giver.

• Debit what comes in and credit what goes out

• Debit the receiver and credit the giver

• Debit expenses and losses, credit incomes and gains

• Debit assets and credit liabilities

• Debit drawings and credit capital

• Debit purchases and credit accounts payable

• Debit accounts receivable and credit sales

Yes, the teacode for SAP creating an invoice verification is MIRO.

• The teacode for creating an invoice verification in SAP is MIRO.

• MIRO is used for invoice verification and processing in SAP.

• The MIRO transaction code is used to post vendor invoices in SAP.

• It is important to have knowledge of finance-related processes in SAP as a Process Developer.

The first step would be to verify the accuracy of the found price by cross-checking it with the original purchase order or invoice.

• Cross-check the found price with the original purchase order or invoice

• Ensure that the correct price is recorded in the system

• Investigate any discrepancies and resolve them accordingly

Accrual account is a type of account that records 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 the cash is received or paid.

• Accrual accounts are used to record these transactions until they are paid or received.

• Journal entry is the process of recording a transaction in the accounting system using debits and credits.

• For example, if a com...read more

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

Pep/KYC/CDD are compliance processes to verify customer identity and prevent money laundering. UBO refers to Ultimate Beneficial Owner.

• PEP stands for Politically Exposed Person, KYC for Know Your Customer, and CDD for Customer Due Diligence.

• ML refers to Money Laundering, which is the illegal process of making large amounts of money generated by criminal activity appear to have come from a legitimate source.

• CDD is a standard process to verify customer identity and assess the r...read more

OTC stands for Over-The-Counter, where trading of financial instruments occurs directly between parties without the supervision of an exchange.

• OTC markets are decentralized and do not have a physical location like traditional exchanges.

• Participants in OTC markets can negotiate prices directly with each other, leading to more flexibility in terms of trade terms.

• Examples of OTC instruments include stocks, bonds, derivatives, and foreign exchange.

• Exchanges play a role in providi...read more

Banks are financial institutions that provide various services such as deposits, loans, and investments.

• Banks accept deposits from customers and pay interest on them.

• They provide loans to individuals and businesses for various purposes.

• Banks also offer investment services such as mutual funds and stocks.

• They have various departments such as customer service, operations, and risk management.

• Banking processes include account opening, loan processing, and transaction processing.

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.

Sales returns are products that customers return to the company for various reasons.

• Sales returns refer to the products that customers return to the company.

• These returns can occur due to various reasons such as product defects, customer dissatisfaction, or incorrect shipments.

• Sales returns are recorded as a reduction in revenue and accounts receivable.

• They are typically accompanied by a credit memo or refund to the customer.

• Examples of sales returns include returning a fault...read more

The life cycle of Chargeback in dispute management involves several stages from initiation to resolution.

• Initiation of chargeback by the cardholder or issuer

• Investigation by the merchant to gather evidence

• Submission of evidence to the acquiring bank

• Review by the issuing bank

• Resolution through arbitration or negotiation

No, O2C (Order to Cash) is a broader process that includes account receivables as one of its components.

• O2C involves the entire process from receiving an order to receiving payment, while accounts receivable focuses specifically on managing outstanding invoices and payments from customers.

• Accounts receivable is a subset of the O2C process, which also includes order processing, billing, and collections.

• O2C is more comprehensive and involves multiple departments such as sales, ...read more

Process Builder is a more advanced automation tool compared to Workflow Rule.

• Process Builder allows for more complex logic and can perform multiple actions.

• Workflow Rule is limited to simple if/then logic and can only perform field updates or send email alerts.

• Process Builder can create or update records, launch flows, and call Apex classes.

• Workflow Rule can only trigger on record creation or when specific field values are changed.

• Process Builder has a visual interface for ea...read more

Risk refers to the possibility of loss or harm, while frauds are intentional deception for personal gain.

• Risk can be financial, operational, reputational, or legal in nature.

• Frauds can include embezzlement, identity theft, and false claims.

• Organizations need to have measures in place to identify and mitigate risks and frauds.

• Examples of risk management strategies include insurance, diversification, and contingency planning.

• Examples of fraud prevention measures include backgro...read more

Accrued income and expenses are recognized but not yet received or paid, while deferred assets and liabilities are recognized but not yet earned or incurred.

• Accrued income and expenses are recognized in the financial statements but not yet received or paid.

• Deferred assets and liabilities are recognized in the financial statements but not yet earned or incurred.

• Journal entries for accrued income and expenses involve debiting the relevant expense or income account and crediting...read more

To check if a key exists in a dictionary without raising a KeyError.

• Use the 'in' keyword to check if the key exists in the dictionary.

• Use the 'get' method to return a default value if the key does not exist.

• Use the 'keys' method to get a list of all keys and check if the key is in the list.

Depreciation is the decrease in value of an asset over time. We prepare balance sheet to show the financial position of a company.

• Depreciation is a non-cash expense that reduces the value of an asset over its useful life.

• It is calculated by dividing the cost of the asset by its useful life.

• Depreciation is important for accurate financial reporting and tax purposes.

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

• Depreciation is ...read more

Debit and credit are the two sides of an accounting transaction.

• Debit is an entry on the left side of an account, representing an increase in assets or a decrease in liabilities or equity.

• Credit is an entry on the right side of an account, representing a decrease in assets or an increase in liabilities or equity.

• Debit and credit must always balance in every transaction.

• For example, when a company purchases inventory with cash, the inventory account is debited and the cash acc...read more

Yes, we still need to prepare a Bank Reconciliation Statement (BRS).

• BRS helps in identifying any discrepancies between the bank statement and bank book.

• Even if the balances are the same, there could be outstanding checks or deposits in transit.

• BRS ensures accuracy and helps in detecting errors or fraudulent activities.

• It provides a clear picture of the actual cash position and helps in financial planning.

• Example: If a check was issued but not yet presented for payment, it won...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 non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated based on the useful life of the asset and the method of depreciation chosen.

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

• For example, if a company purchases a machine ...read more

The most commonly used purchase order is PO-12345.

• PO-12345 is used for regular purchases.

• It is the default purchase order for most vendors.

• PO-12345 is used for recurring expenses like office supplies and utilities.

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

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

• Lists assets, liabilities, and owner's equity

• Provides a snapshot of the financial position of a business

• Helps in assessing the financial health and stability of a company

• Assets = Liabilities + Owner's Equity

• Example: Assets include cash, inventory, equipment; Liabilities include loans, accounts payable; Owner's Equity is the difference between assets and ...read more

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

To create an invoice process for accounts payable, follow these steps:

• Gather all necessary information for the invoice, including vendor name, invoice number, date, and amount

• Create a purchase order if necessary

• Enter the invoice information into the accounting system

• Verify the invoice against the purchase order and receipt of goods or services

• Obtain approval for payment

• Schedule payment and update accounting records

Accountancy basics, TAT, SAP, VLOOKUP, MACRO explained

• Introduction to accountancy and its golden rule

• Unapplied payments are payments received but not yet applied to specific invoices

• Unaccounted payments are payments that cannot be matched to any invoices

• TAT stands for Turnaround Time, the time taken to complete a process

• SAP is a popular enterprise resource planning software used for business operations

• VLOOKUP is a function in Excel used to search for a value in a table

• MACRO i...read more