KPMG India Tax Associate 2 Interview Questions and Answers

Q1. Smallcase study for depreciation adjustments
Ans. 
Depreciation adjustments case study
• Calculate depreciation expense using straight-line method

• Adjust accumulated depreciation for prior years

• Record any disposals or impairments of assets

• Review useful life and salvage value assumptions

• Ensure compliance with accounting standards and tax regulations
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Q2. Favorable adjustments
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Favorable adjustments refer to changes made to financial statements that improve the overall financial position of a company.
• Favorable adjustments can include corrections to errors, revaluations of assets, or changes in accounting estimates.

• These adjustments can result in higher revenues, lower expenses, or increased assets on the balance sheet.

• For example, a company may discover an error in its inventory valuation, le...read more
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Q3. Unfavourable adjustments
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Unfavourable adjustments refer to changes made to financial statements that negatively impact the company's performance.
• Unfavourable adjustments can include write-downs of assets, increased liabilities, or lower revenue recognition.

• These adjustments are typically made to reflect a more accurate representation of the company's financial position.

• Examples of unfavourable adjustments include recognizing a loss on an inves...read more
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Q4. Form net income line items
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Forming net income line items involves categorizing revenues and expenses to calculate the overall profit or loss.
• Identify all sources of revenue, such as sales, services, interest income, etc.

• List all expenses incurred, including salaries, rent, utilities, supplies, etc.

• Subtract total expenses from total revenue to calculate net income.

• Include any adjustments or extraordinary items that affect the final net income fig
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Q1. Salary expectations
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Questions releated to reasoning

Cash vs UPI time:-15 min members:-10,

Q1. Tell me about yourself
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Q2. What is financial statement
Ans. 
A financial statement is a document that provides an overview of a company's financial performance and position.
• Financial statements include the balance sheet, income statement, and cash flow statement.

• They are prepared by companies to communicate their financial information to stakeholders.

• Financial statements help in assessing the profitability, liquidity, and solvency of a company.

• They are used by investors, credito...read more
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Q3. What is GAAP? and how its help us as a tax consultant
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GAAP stands for Generally Accepted Accounting Principles. It is a set of standard accounting rules and guidelines.
• GAAP provides a framework for preparing financial statements and ensures consistency and comparability in financial reporting.

• As a tax consultant, understanding GAAP helps in accurately interpreting financial statements and identifying taxable income.

• GAAP also helps in determining the appropriate tax treatm...read more
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Q1. Everything in resume will be asked and technical questions too
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Q1. Technical questions related to the role applied.
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Q1. Behavioral questions
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Q1. Accounting related
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Q1. Accounting and previous work
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Q1. Senior manager round
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Quants, Accountancy, Logical reasoning, Verbal ability and Reading comprehension

Q1. With a senior who will evaluate our proficiency in English, understanding in Tax and Accounts
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