Optum Global Solutions Senior General Ledger Accountant Interview Questions and Answers

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

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

• It includes preparing financial statements such as balance sheets and income statements

• It helps businesses make informed decisions based on financial data

• Examples of accoun...read more

A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.

• It shows the company's assets, liabilities, and shareholders' equity.

• Assets include cash, accounts receivable, inventory, and property.

• Liabilities include loans, accounts payable, and accrued expenses.

• Shareholders' equity represents the company's net worth.

• The balance sheet follows the formula...read more

Assets and liabilities are recorded in the books of accounts to track the financial position of a company.

• Assets are resources owned by a company that have economic value, such as cash, inventory, or property.

• Liabilities are obligations or debts that a company owes to external parties, such as loans or accounts payable.

• Recording assets and liabilities helps in determining the financial health and net worth of a company...read more

Accounts to be maintained in accounts include cash, accounts receivable, accounts payable, inventory, and fixed assets.

• Cash account for recording all cash transactions

• Accounts receivable for recording money owed to the company by customers

• Accounts payable for recording money owed by the company to suppliers

• Inventory for recording the value of goods held for sale

• Fixed assets for recording long-term assets such as proper

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated based on the useful life of the asset and the method of depreciation chosen.

• Examples of assets that can be depreciated include buildings, vehicles, machinery, and equipment.

• Depreciation can be straight-...read more

Accountancy is the practice of recording, analyzing, and reporting financial transactions for individuals, businesses, and organizations.

• Accountancy involves the systematic recording of financial transactions.

• It includes analyzing financial data to provide insights and make informed decisions.

• Accountants prepare financial statements and reports to communicate the financial health of an entity.

• They ensure compliance wit...read more

A debtor is a person or entity that owes money or has a financial obligation to another party.

• A debtor is someone who has borrowed money or received goods or services on credit.

• Debtors can be individuals, businesses, or even governments.

• They are legally obligated to repay the borrowed amount or fulfill their financial obligations.

• Debtors are recorded as liabilities on the balance sheet of the creditor.

• Examples of debto...read more

A creditor is a person or entity to whom money is owed.

• A creditor is someone who has provided goods or services on credit.

• They are owed money by the debtor.

• Creditors can be individuals, businesses, or financial institutions.

• Examples of creditors include suppliers, banks, and bondholders.

The ledger entry for a credit sale involves recording the increase in accounts receivable and the corresponding increase in sales revenue.

• Credit sale is a transaction where goods or services are sold on credit, meaning the payment is expected at a later date.

• To record a credit sale, the accounts receivable account is debited to increase the amount owed by the customer.

• Simultaneously, the sales revenue account is credit...read more