SVC India Interview Questions, Process, and Tips

Accrual is an accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

• Accrual accounting recognizes revenue and expenses when they are earned or incurred, not when cash is exchanged.

• Journal entries for accruals involve debiting an expense account and crediting a liability account.

• Debtor's receivable refers to the amount of money owed to a company by its custo...read more

Budgeting involves setting financial goals and allocating resources, while forecasting involves predicting future financial outcomes based on current data.

• Budgeting is a plan for the future, while forecasting is a prediction of the future.

• Budgeting involves setting specific financial goals and allocating resources accordingly.

• Forecasting involves analyzing current data and trends to predict future financial outcomes.

• Bu...read more

Sale of assets refers to the disposal of a company's long-term assets, impacting the financial statements.

• Sale of assets results in a gain or loss on the income statement.

• Cash received from the sale increases cash flow from investing activities on the cash flow statement.

• The balance sheet is impacted by the removal of the sold asset and any related accumulated depreciation.

• Examples include selling equipment, vehicles,

Variance analysis is a technique used to compare actual financial performance to budgeted or expected performance.

• It involves analyzing the differences between planned and actual outcomes.

• Helps identify reasons for deviations from expected results.

• Commonly used in budgeting and forecasting processes.

• Can be used to improve decision-making and performance evaluation.

• Example: If a company budgeted $100,000 for sales but o...read more