iOrbit Digital Technologies Senior Executive Operations Interview Questions and Answers

Revenue recognition is the process of recording revenue in a company's financial statements when it is earned.

• Revenue is recognized when it is realized or realizable and earned, regardless of when cash is received.

• It involves determining the amount of revenue to record and when to record it.

• Different industries may have specific guidelines for revenue recognition, such as the percentage-of-completion method for constru...read more

Accounts payable is a financial term that refers to the money a company owes to its suppliers or vendors for goods or services received.

• Accounts payable represents the outstanding invoices or bills that a company needs to pay.

• It is a liability on the company's balance sheet.

• Accounts payable is an important part of the procure-to-pay (P2P) cycle.

• It involves receiving and verifying invoices, recording them in the account...read more

Accounts payable is a financial term referring to the money a company owes to its suppliers or vendors for goods or services received.

• Accounts payable is a liability on the balance sheet.

• It represents the amount owed by a company to its creditors.

• It includes invoices, bills, and other payables that are yet to be paid.

• Accounts payable is an important part of managing cash flow and maintaining good relationships with sup...read more

The golden rules of accounts are fundamental principles that guide the recording and reporting of financial transactions.

• The first golden rule is the Debit the Receiver, Credit the Giver rule. This means that when an asset or expense is received, it is debited, and when a liability, equity, or revenue is given, it is credited.

• The second golden rule is the Debit what comes in, Credit what goes out rule. This means that ...read more

TDS deduction rate refers to the percentage of tax deducted at source from various types of income.

• TDS deduction rate varies based on the type of income and the applicable tax laws.

• For example, the TDS deduction rate for salary income may be different from the rate for interest income.

• The rates are determined by the government and may change from time to time.

• TDS deduction rates are specified in the Income Tax Act of t...read more

Bad debt refers to the amount of money owed to a company that is unlikely to be recovered.

• Bad debt is a financial term used to describe debts that are considered uncollectible or unlikely to be paid back.

• It typically arises when a debtor is unable or unwilling to fulfill their financial obligations.

• Companies often write off bad debts as losses on their financial statements.

• Bad debt can result from unpaid invoices, defa...read more