10+ Apex Mining Interview Questions and Answers

The journal entry for a credit purchase involves crediting accounts payable and debiting the corresponding expense account.

• Credit the accounts payable account to reflect the increase in liability

• Debit the corresponding expense account to show the decrease in assets

• Example: Journal entry for a credit purchase of $500 of office supplies - Debit Office Supplies Expense $500, Credit Accounts Payable $500

The golden rule of accounting is to debit the receiver and credit the giver.

• Debit the receiver, credit the giver

• Assets = Liabilities + Equity

• Revenue increases equity, expenses decrease equity

• Helps maintain the balance in financial statements

Prepaid expenses are expenses paid in advance but not yet incurred. They are recorded as assets on the balance sheet until they are used up.

• Prepaid expenses are initially recorded as assets on the balance sheet

• As the expenses are incurred, they are gradually expensed on the income statement

• Adjust prepaid expenses account at the end of each accounting period to reflect the portion that has been used up

• Examples of prepaid expenses include insurance premiums, rent, and subscript...read more

Provisions in a contract, how to treat them

• Provision 1: Termination clause - clearly outline conditions for termination and consequences

• Provision 2: Indemnification clause - specify who is responsible for legal costs in case of a lawsuit

• Provision 3: Confidentiality clause - detail how sensitive information should be handled and protected

Cashflow statement shows the inflow and outflow of cash in a business over a specific period of time.

• Cashflow statement is divided into three main activities: operating, investing, and financing.

• Operating activities include cash received from sales, payments to suppliers, and salaries paid to employees.

• Investing activities include cash spent on purchasing assets like equipment or investments like stocks.

• Financing activities include cash received from issuing stocks or bonds, ...read more

Sales provision entry is a journal entry made to account for potential future losses on sales.

• Sales provision is a liability account on the balance sheet.

• It is created when there is a likelihood of returns, discounts, or warranty claims on sales already made.

• The entry involves debiting the provision for sales account and crediting the relevant expense account (e.g. provision for sales returns).

The entry for the sale of a fixed asset involves recording the proceeds received and removing the asset from the balance sheet.

• Debit the Cash or Bank account for the amount received from the sale

• Credit the Fixed Asset account for the original cost of the asset

• Credit the Accumulated Depreciation account for the total depreciation accumulated on the asset

• Any difference between the sale proceeds and the net book value of the asset is recorded as a gain or loss on sale of fixed a...read more

Procurement is the process of obtaining goods or services from external sources.

• Involves sourcing, negotiating, and purchasing goods or services

• Focuses on obtaining the best quality at the best price

• Examples include purchasing office supplies, hiring contractors for a project

Supply chain management involves the coordination and optimization of all activities involved in the production and distribution of goods and services.

• Involves planning, sourcing, making, delivering, and returning products

• Focuses on efficiency, cost reduction, and customer satisfaction

• Utilizes technology and data analytics to improve processes

• Examples: inventory management, transportation logistics, supplier relationships

The golden rules of accounting are fundamental principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that debit the receiver and credit the giver.

• The second golden rule is the Real Account rule, which states that debit what comes in and credit what goes out.

• The third golden rule is the Nominal Account rule, which states that debit all expenses and losses and credit all incomes and gains.

Golden rules of accounts include maintaining accurate records, ensuring proper depreciation methods, and optimizing P2P processes.

• Maintain accurate records of all financial transactions

• Ensure proper depreciation methods are used to accurately reflect asset values

• Optimize P2P processes to improve efficiency and reduce costs

• Examples: using electronic invoicing, implementing automated approval workflows

Accrual concept is a method of accounting where revenues and expenses are recognized when earned or incurred, regardless of when payment is received or made.

• Accrual accounting recognizes revenue when it is earned, not when payment is received

• Expenses are recognized when they are incurred, not when payment is made

• Accrual concept is used to match revenues and expenses in the same accounting period

• Example: A company provides services in December but does not receive payment unti...read more