National Credit Guarantee Trustee Company Interview Questions and Answers

Contingent liabilities are potential liabilities that may arise in the future depending on the outcome of uncertain events.

• Contingent liabilities are not recorded on the balance sheet but disclosed in the footnotes.

• They are dependent on the occurrence of a specific event, such as a lawsuit or warranty claim.

• Examples include pending lawsuits, product warranties, and guarantees on loans.

• Companies must assess the likelihood of the contingent liability occurring and estimate the ...read more

Audit is a systematic examination of an organization's financial records to ensure accuracy and compliance with regulations.

• Audit involves reviewing financial statements, transactions, and internal controls.

• The purpose of an audit is to provide assurance to stakeholders that the financial information is reliable.

• Auditors must be independent and objective in their assessments.

• Examples of audits include external audits conducted by accounting firms and internal audits performed...read more

CARO 2020 has introduced new reporting requirements and expanded the scope of the audit compared to CARO 2016.

• CARO 2020 requires reporting on additional matters such as fraud, internal financial controls, and corporate social responsibility.

• CARO 2020 has expanded the scope of the audit to include more types of companies, such as one-person companies and small companies.

• CARO 2020 has increased the threshold for reporting on loans and advances made by the company.

• CARO 2020 has ...read more

VLOOKUP is a function in Excel used to search for a value in a table and return a corresponding value from another column.

• Used to search for a value in the first column of a table and return a value in the same row from a specified column

• Requires four arguments: lookup_value, table_array, col_index_num, and range_lookup

• Example: =VLOOKUP(A2, B2:D10, 3, FALSE) - searches for the value in cell A2 in the range B2:D10 and returns the value in the 3rd column

• Commonly used for data a...read more

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit all expenses and losses, Credit all incomes and gains.

• These rules help ensure that financial transactions are accurately recorded and classified.

• For example, when a company receives cash from a customer, the cash account is debited (increased) ...read more