KPMG India Interview Questions and Answers

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

• It is a fundamental principle of accounting.

• It is used to record transactions in the correct way.

• It ensures that the accounting equation remains balanced.

• For example, when a company receives cash, it debits cash and credits the account that provided the cash.

• It is also known as the principle of reciprocity.

Budgeting involves creating a financial plan for a specific period, while forecasting predicts future financial outcomes.

• Budgeting is a detailed plan that outlines expected income and expenses for a specific period, usually a year.

• Forecasting is an estimate of future financial outcomes based on historical data and trends.

• Budgeting focuses on setting financial targets and allocating resources accordingly.

• Forecasting helps in predicting future financial performance and making i...read more

Financial refers to anything related to money, investments, and the management of funds.

• Financial analysis involves examining financial statements to make investment decisions.

• Financial planning involves creating a budget and setting financial goals.

• Financial management involves managing cash flow, investments, and debt.

• Financial markets refer to the buying and selling of financial assets, such as stocks and bonds.

• Financial institutions include banks, credit unions, and inves...read more

Elements of accounts refer to the basic components that make up financial statements.

• The elements of accounts include assets, liabilities, equity, revenue, and expenses.

• Assets are resources owned by a company, such as cash, inventory, and property.

• Liabilities are obligations owed by a company, such as loans and accounts payable.

• Equity represents the residual interest in the assets of a company after liabilities are deducted.

• Revenue is the income earned by a company from its o...read more

Handling financial issues involves analyzing the problem, creating a plan, and implementing solutions.

• Analyze the financial issue to understand the root cause

• Create a detailed plan to address the issue, including budget adjustments or cost-cutting measures

• Implement the plan effectively, monitoring progress and making adjustments as needed

• Seek advice from financial experts or consultants if necessary

• Communicate with stakeholders about the issue and the steps being taken to res...read more

Bank reconciliation is the process of comparing a company's records of its bank account balance with the bank's records.

• Bank reconciliation helps ensure the accuracy of a company's financial records.

• It involves comparing the company's records of cash transactions with the bank statement.

• Any discrepancies between the two sets of records need to be investigated and resolved.

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

• Bank reco...read more