Ipca Laboratories Senior Accountant Interview Questions and Answers

Financial accounting is the process of recording, summarizing, and reporting the financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data in financial statements like balance sheet and income statement

• Reporting financial information to stakeholders like investors and regulators

The formula for capital is total assets minus total liabilities.

• Capital = Total Assets - Total Liabilities

• Total assets include cash, inventory, property, etc.

• Total liabilities include debts, loans, accounts payable, etc.

The 3 types of liabilities are current liabilities, non-current liabilities, and contingent liabilities.

• Current liabilities are obligations due within one year, such as accounts payable and short-term loans.

• Non-current liabilities are obligations due beyond one year, such as long-term loans and bonds payable.

• Contingent liabilities are potential obligations that depend on the outcome of future events, such as lawsuits o

Assets are resources owned by a company that have economic value and can be used to generate future revenue.

• Assets can include cash, accounts receivable, inventory, property, equipment, and investments.

• Assets are typically listed on a company's balance sheet and are categorized as current assets or non-current assets.

• Current assets are expected to be converted into cash within one year, while non-current assets are lon...read more

The golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The golden rules include: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains.

• These rules help ensure that financial transactions are accurately recorded and classified in the accounting system.

• For example, when a company receives ...read more

There are five main types of accounts: assets, liabilities, equity, revenue, and expenses.

• Assets: resources owned by the company (e.g. cash, inventory)

• Liabilities: obligations owed by the company (e.g. loans, accounts payable)

• Equity: the owner's claim on the company's assets (e.g. common stock)

• Revenue: income generated from the company's operations (e.g. sales revenue)

• Expenses: costs incurred to generate revenue (e.g.