Olam Financial Associate Interview Questions and Answers

Related to accounts and finance based on 11 and 12 th studies

Q1. Golden rules and accounting explanation
Ans. 
Golden rules in accounting are basic principles that guide the preparation of financial statements.
• Golden rules include the principles of accounting like the principle of conservatism, consistency, materiality, etc.

• These rules help ensure that financial statements are accurate, reliable, and consistent.

• For example, the principle of conservatism dictates that expenses and liabilities should be recognized as soon as poss...read more
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Q2. Trail balance and balance sheet
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Q1. What is capital budgeting?
Ans. 
Capital budgeting is the process of planning and evaluating long-term investment decisions.
• It involves analyzing potential investments and deciding which ones to pursue

• Factors such as cash flow, risk, and return are considered

• Techniques used include net present value, internal rate of return, and payback period

• Examples include building a new factory, investing in research and development, or acquiring another company
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Q2. What is a cut-off procedure?
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Cut-off procedure is a process of determining the point at which a transaction or event is no longer included in the current period's financial statements.
• It is used to ensure that financial statements accurately reflect the financial position of a company at the end of a reporting period.

• It involves reviewing transactions and events that occurred after the end of the reporting period to determine if they should be inc...read more
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Q1. What is more important, Revenue or Profits?
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Both revenue and profits are important, but profits are more crucial for long-term sustainability and growth.
• Revenue is the total amount of money earned by a company from its sales, while profits are the amount of money left over after deducting all expenses.

• While revenue is important for a company's short-term success, profits are crucial for its long-term sustainability and growth.

• A company with high revenue but low ...read more
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