Infotech Global Interview Questions and Answers

BRS stands for Bank Reconciliation Statement. It is a statement that compares the bank balance as per bank statement with the balance as per company's books.

• BRS helps in identifying any discrepancies between the bank statement and company's books

• It ensures that all transactions are recorded accurately

• It helps in detecting any fraudulent activities

• Example: If the bank statement shows a different balance than the company's books, BRS will help in identifying the cause of the di...read more

Prepaid expenses are expenses paid in advance but not yet incurred. Journal entry involves debiting prepaid expense and crediting cash/bank account.

• Prepaid expenses are recorded as assets on the balance sheet

• When the expense is incurred, the prepaid asset is reduced and the related expense is recognized

• Journal entry for prepaid expenses involves debiting prepaid expense account and crediting cash/bank account

• Example: Rent paid in advance for the next 6 months would be recorde...read more

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• Accounting principles include the accrual principle, the consistency principle, the materiality principle, and the conservatism principle.

• Accrual principle states that revenue and expenses should be recognized when earned or incurred, not when cash is received or paid.

• Consistency principle requires that accounting metho...read more

P2P process is the procurement-to-payment process that involves all activities from purchasing to payment of goods and services.

• P2P process includes requisitioning, purchasing, receiving, invoicing, and payment

• It ensures that goods and services are procured at the best price and delivered on time

• ERS (Evaluated Receipt Settlement) is a P2P process where payment is made based on the receipt of goods or services

• ERS eliminates the need for a separate invoice and reduces the time ...read more

Cash book is a financial record that tracks all cash transactions of a business.

• It records all cash receipts and payments

• It helps in maintaining cash balance

• It is a subsidiary book of accounts

• It is used to prepare the cash flow statement

• Example: Petty cash book, Bank cash book

Accounts payable is the amount of money a company owes to its vendors or suppliers for goods or services received but not yet paid for.

• Accounts payable is a liability on the balance sheet

• It represents the amount owed to vendors or suppliers

• It includes invoices received but not yet paid

• It is an important part of cash flow management

• Examples include rent, utilities, and inventory purchases