10+ Grant Thornton Interview Questions and Answers for Freshers

Financial statements provide a snapshot of a company's financial health, including assets, liabilities, and equity. Trial balances ensure accuracy of financial records.

• Financial statements serve to provide stakeholders with an overview of a company's financial performance and position.

• Components of financial statements include balance sheet, income statement, cash flow statement, and statement of changes in equity.

• Balance sheet shows assets, liabilities, and equity at a speci...read more

Depreciation is the allocation of the cost of a tangible asset over its useful life. Land does not depreciate.

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

• It is calculated using methods such as straight-line, double declining balance, or units of production.

• Land is not depreciated because it is considered to have an indefinite useful life.

• Journal entries for depreciation involve debiting Depreciation Expense and crediting Accumu...read more

Audit is a systematic examination of financial records, statements, or operations to ensure accuracy and compliance with laws and regulations.

• Audit involves reviewing financial records, statements, or operations

• It aims to ensure accuracy, compliance with laws and regulations, and identify any discrepancies or fraud

• Auditors gather evidence, analyze data, and report findings to stakeholders

• Types of audits include financial audit, operational audit, compliance audit, and forensi...read more

Ratios are used to analyze financial performance and efficiency of a company.

• Profit Margin: Net income divided by total revenue, shows how much profit a company makes for every dollar of sales.

• Current Ratio: Current assets divided by current liabilities, measures a company's ability to pay its short-term obligations.

• Debt-to-Equity Ratio: Total debt divided by total equity, indicates the proportion of debt used to finance a company's assets.

• Return on Investment (ROI): Net prof...read more

The purpose of audit is to provide an independent assessment of an organization's financial statements or processes to ensure accuracy, compliance, and efficiency.

• Ensuring accuracy of financial statements

• Evaluating compliance with laws and regulations

• Identifying areas for improvement in processes and controls

• Providing assurance to stakeholders

• Detecting and preventing fraud or errors

• Enhancing transparency and accountability

• Examples: financial audit, operational audit, complian...read more

A bank reconciliation statement is a document that compares the balance in a company's bank account with the balance shown on the bank statement.

• It helps identify any discrepancies between the two balances, such as outstanding checks or deposits in transit.

• The statement typically includes adjustments for items like bank fees, interest earned, and errors.

• The goal of a bank reconciliation statement is to ensure the accuracy of the company's financial records and bank transactio...read more

Tax liability for income of 1400000 needs to be calculated.

• Determine the tax bracket based on the income level

• Calculate the tax amount based on the tax rates for each bracket

• Consider any deductions or credits that may apply

The golden rule of accounting states that debit what comes in and credit what goes out.

• Debit what comes in and credit what goes out

• Assets = Liabilities + Equity

• Helps maintain the balance in financial statements

GST can lead to cheaper goods through the elimination of cascading taxes and increased efficiency in the supply chain.

• GST eliminates the cascading effect of taxes, where taxes are levied on top of taxes, resulting in higher prices.

• Under GST, input tax credits can be claimed, allowing businesses to reduce their tax liability and pass on the benefits to consumers.

• GST simplifies the tax structure and reduces compliance costs, which can lead to cost savings for businesses and ult...read more

An audit statement is a formal declaration of the findings and conclusions of an audit process.

• An audit statement summarizes the results of an audit, including any discrepancies or areas of concern.

• It is typically issued by the auditor or auditing firm to the client or relevant stakeholders.

• The statement may include recommendations for improvement or corrective actions.

• Examples of audit statements include financial audit reports, compliance audit findings, and internal contro...read more