CSM Technologies Interview Questions and Answers

There are several types of invoices including standard, commercial, proforma, credit, and debit invoices.

• Standard invoice: issued after goods or services are delivered

• Commercial invoice: used for international trade and includes details like the country of origin and harmonized system codes

• Proforma invoice: issued before goods or services are delivered and includes estimated costs

• Credit invoice: issued when a refund or credit is due to the buyer

• Debit invoice: issued when addi...read more

AP is a P/L item as it represents expenses incurred by the company.

• Accounts Payable (AP) is a liability account that represents the amount owed by a company to its suppliers or vendors for goods or services received.

• As AP represents expenses incurred by the company, it is considered a P/L (Profit and Loss) item.

• AP is recorded on the balance sheet as a current liability until it is paid off.

• Once the payment is made, the AP account is reduced and the cash account is reduced by ...read more

P2P Cycle refers to the Procure-to-Pay Cycle, which is the process of purchasing goods or services and paying for them.

• The cycle starts with identifying the need for a product or service.

• Next, a purchase order is created and sent to the supplier.

• The supplier then delivers the product or service and sends an invoice.

• The invoice is matched with the purchase order and goods receipt.

• Finally, payment is made to the supplier.

• The cycle ends with recording the transaction in the acco...read more

Amortization is the process of spreading out the cost of an asset over its useful life.

• It is a method of accounting used to reduce the value of an asset over time

• It is commonly used for intangible assets such as patents and trademarks

• It is also used for loans and mortgages to calculate periodic payments

• The formula for amortization involves the initial cost, interest rate, and time period

• Example: A company purchases a patent for $100,000 with a useful life of 10 years. The ann...read more

Accounting principles are the guidelines and rules that govern the field of accounting.

• Accounting principles ensure consistency and accuracy in financial reporting.

• They include concepts such as the matching principle, revenue recognition, and the time period principle.

• These principles are used to create financial statements that accurately reflect a company's financial position.

• They also help ensure that financial statements are comparable across different companies and indus...read more