Skillactz Interview Questions and Answers

Profit and loss account, financial statement, and cash flow statement are all important financial documents used to track a company's financial performance.

• Profit and loss account shows a company's revenues, expenses, and net income or loss over a specific period of time.

• Financial statements provide a comprehensive overview of a company's financial health, including its assets, liabilities, and equity.

• Cash flow statement shows the inflow and outflow of cash in a company over ...read more

The cash flow statement has three main elements: operating activities, investing activities, and financing activities.

• Operating activities: cash inflows and outflows from the company's core business operations, such as sales and expenses.

• Investing activities: cash inflows and outflows from investments, such as buying or selling property, plant, and equipment.

• Financing activities: cash inflows and outflows from financing, such as issuing or repaying debt, or paying dividends t...read more

Bank Reconciliation Statement is a document that compares the bank statement with the company's records.

• It helps to identify any discrepancies between the two records.

• It ensures that all transactions are recorded accurately.

• It helps to detect any fraudulent activities.

• It is prepared at regular intervals, usually monthly.

• Example: If a company issues a check but it has not yet cleared the bank, it will be reflected in the company's records but not in the bank statement.

• Example:...read more

Auditing is the process of examining financial records to ensure accuracy and compliance with laws and regulations.

• Auditing involves reviewing financial statements, records, and transactions.

• It is done to ensure that financial information is accurate and reliable.

• Auditors also check for compliance with laws and regulations.

• There are different types of audits, such as internal, external, and forensic audits.

• Auditing is important for maintaining transparency and accountability ...read more

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

• Accounting involves keeping track of financial transactions such as sales, purchases, and payments

• It includes classifying these transactions into categories such as assets, liabilities, and equity

• The information is then summarized in financial statements such as balance sheets and income statements

• Examples of accounting...read more