IKIO Lighting Accounts & Finance Manager Interview Questions and Answers

Closing stock is the value of unsold goods at the end of an accounting period.

• Closing stock is an asset on the balance sheet.

• It represents the value of inventory that remains unsold.

• The value of closing stock is determined using either the cost or net realizable value, whichever is lower.

• Closing stock is recorded as an expense in the income statement.

• It is deducted from the cost of goods sold to calculate the gross pro...read more

Revenue recognition in contract refers to the process of accounting for revenue earned from a contract.

• Revenue is recognized when it is earned and can be reliably measured.

• The revenue recognition method used depends on the type of contract and the nature of the business.

• Common methods include percentage of completion, completed contract, and installment sales.

• Revenue recognition can have a significant impact on financi...read more

Degree of completion method is a technique used in accounting to recognize revenue and expenses based on the percentage of completion of a project.

• Revenue and expenses are recognized based on the percentage of completion of a project

• This method is commonly used in construction and real estate industries

• It requires estimation of the percentage of completion of the project

• It helps in providing a more accurate picture of