10+ Financeplus - WPP Interview Questions and Answers

Related party as per Ind AS refers to entities or individuals that are related to the reporting entity through control, joint control, or significant influence.

• Related parties include subsidiaries, associates, joint ventures, key management personnel, and close family members of key management personnel.

• Transactions with related parties must be disclosed in the financial statements to ensure transparency and prevent conflicts of interest.

• Examples of related party transactions...read more

Bank reconciliation shows differences due to timing discrepancies or errors. Adjustments are made to correct these discrepancies.

• Differences in bank reconciliation can be due to timing discrepancies, such as outstanding checks or deposits.

• Errors in recording transactions can also lead to differences in bank reconciliation.

• Adjustments are made by identifying the source of the difference and making the necessary corrections in the accounting records.

• For example, if a check issu...read more

Current ratio is a financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets.

• Current ratio is calculated by dividing current assets by current liabilities.

• A current ratio of 1 or higher is generally considered healthy.

• Cash and cash equivalents include physical currency, bank accounts, and short-term investments that are easily convertible to cash.

• Examples of cash equivalents include treasury bills, money market fund...read more

Factors considered when calculating Raw materials variance

• Actual quantity of raw materials used

• Standard quantity of raw materials allowed for production

• Actual cost of raw materials used

• Standard cost of raw materials allowed for production

• Efficiency of production process

• Price fluctuations in raw materials

Fixed assets in manufacturing industries typically include machinery, equipment, buildings, and land.

• Fixed assets in manufacturing industries are long-term assets that are used in the production process.

• Examples of fixed assets in manufacturing industries include machinery, equipment, buildings, and land.

• These assets are not intended for sale and are essential for the company's operations.

• Fixed assets are recorded on the balance sheet and depreciated over their useful lives.

Depreciation is not charged on impaired assets because impairment already reflects the reduction in value.

• Impairment is a permanent decrease in the value of an asset, while depreciation is the allocation of an asset's cost over its useful life.

• Charging depreciation on impaired assets would result in double counting the reduction in value.

• Impairment is recognized when the carrying amount of an asset exceeds its recoverable amount.

• Impairment is a one-time adjustment to the carr...read more

GRIR account is Goods Receipt/Invoice Receipt account used in SAP for tracking goods received but not yet invoiced or vice versa.

• GRIR account is used to track discrepancies between goods receipt and invoice receipt in SAP.

• It helps in ensuring accurate inventory valuation and financial reporting.

• To process in SAP, match the goods receipt with the invoice receipt and clear the GRIR account accordingly.

• If goods are received but not yet invoiced, the amount is credited to GRIR ac...read more

The T Code used in SAP for asset addition is AS01.

• T Code AS01 is used for creating a new asset in SAP

• It is important to input all necessary information accurately while using T Code AS01

• AS01 allows for the addition of various types of assets such as tangible and intangible assets

The part in my control in the process includes setting goals, assigning tasks, monitoring progress, and making adjustments as needed.

• Setting goals for the team and individual team members

• Assigning tasks based on skills and workload

• Monitoring progress through regular check-ins and reports

• Making adjustments to the process or team structure as needed

The useful life of a laptop is typically around 3-5 years, while software can vary depending on updates and compatibility.

• Laptops generally have a useful life of 3-5 years before needing to be replaced due to hardware degradation or outdated technology.

• Software can have a longer useful life if regularly updated and maintained, but may become obsolete due to compatibility issues with newer systems.

• Factors such as usage frequency, environmental conditions, and maintenance pract...read more

Debtors Ratio is calculated by dividing the total debtors by the total sales and multiplying by 365.

• Calculate total debtors (accounts receivable)

• Calculate total sales

• Divide total debtors by total sales

• Multiply the result by 365 to get the Debtors Ratio