Toppan Merrill Technology Services India Associate Financial Analyst Interview Questions, Process, and Tips

Different types of depreciation include straight-line, double declining balance, units of production, and sum of years digits.

• Straight-line depreciation: Allocates an equal amount of depreciation expense each year.

• Double declining balance depreciation: Accelerates depreciation by applying a fixed percentage to the book value of the asset.

• Units of production depreciation: Depreciation is based on the actual usage of the...read more

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

• Cashflow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

• It is divided into three sections: operating activities, investing activities, and financing activities.

• Direct method involves listing all cash inflows and outflows from operating activities, while indirect ...read more

US GAAP and IFRS are two sets of accounting standards used globally, with key differences in principles and rules.

• US GAAP is rules-based, while IFRS is principles-based

• US GAAP allows LIFO inventory valuation method, while IFRS does not

• US GAAP requires research and development costs to be expensed, while IFRS allows capitalization under certain conditions

Goodwill is an intangible asset that represents the excess of the purchase price of a company over the fair value of its identifiable assets and liabilities.

• Goodwill is recorded on the balance sheet when one company acquires another company for a price higher than the fair market value of its net assets.

• It is considered an intangible asset because it cannot be physically touched or seen.

• Goodwill is not amortized but is...read more

The basic assumptions of accounting include cashflow, materiality, and IND AS 115.

• Cashflow assumption states that transactions should be recorded when cash is received or paid.

• Materiality assumption states that only significant information should be reported.

• IND AS 115 is a revenue recognition standard that outlines how and when revenue should be recognized.