Spark Interview Questions and Answers

AR stands for Accounts Receivable and AP stands for Accounts Payable.

• AR refers to money owed to a company by its customers for goods or services provided on credit.

• AP refers to money owed by a company to its suppliers for goods or services purchased on credit.

• AR is an asset on the balance sheet, while AP is a liability.

• Examples: AR - outstanding invoices from customers, AP - unpaid bills to suppliers.

Statement of accounts is a summary of all financial transactions between a customer and a business over a specific period of time.

• It is a document that shows all transactions, including payments and charges, made by a customer with a business.

• It helps in tracking the financial status of a customer's account with a business.

• Statement of accounts is usually sent periodically, such as monthly or quarterly, to keep customers informed about their financial activities.

• It includes d...read more

GST stands for Goods and Services Tax, a value-added tax levied on most goods and services sold for domestic consumption.

• GST is a consumption tax that is imposed on the supply of goods and services in India.

• It replaced multiple indirect taxes like VAT, service tax, etc.

• GST has multiple slabs - 5%, 12%, 18%, and 28% - based on the type of goods or services.

• Input tax credit can be claimed under GST for taxes paid on inputs used in the supply of goods or services.

• GST registratio...read more

Capital gains are profits that result from the sale of an asset, such as stocks, bonds, or real estate, and are subject to capital gains tax.

• Capital gains are the difference between the purchase price and the selling price of an asset.

• They can be short-term (held for one year or less) or long-term (held for more than one year).

• Capital gains are subject to capital gains tax, which varies depending on the holding period and the individual's tax bracket.

• Examples of assets that c...read more

Depreciation is the allocation of the cost of an asset over its useful life.

• Depreciation is a non-cash expense that reduces the value of an asset over time.

• It is used to reflect the wear and tear, obsolescence, or decrease in value of an asset.

• Common methods of depreciation include straight-line, double declining balance, and units of production.

• Depreciation expense is recorded on the income statement and accumulated depreciation is shown on the balance sheet.

• Understanding de...read more

GST can be booked by recording the input and output taxes in the accounting system.

• Record input GST paid on purchases as an expense

• Record output GST collected on sales as revenue

• Ensure accurate classification of GST amounts for different tax rates

• Regularly reconcile GST amounts with tax returns

• Use accounting software to automate GST calculations and reporting