Clario Interview Questions and Answers

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 asset.

• Sum of years digits depreciation: Accelerates depre...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 method starts with net income and adjusts for non-cash ite...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.

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 instead tested for impairment annually.

• If the fair value ...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

Items not included in PGBP calculation

• Personal expenses

• Capital expenses

• Expenses not related to business

• Expenses related to exempt income

• Expenses related to non-taxable income

I worked at XYZ Corp as a QA Engineer. I demonstrated strong attention to detail and problem-solving skills.

• Worked at XYZ Corp as a QA Engineer

• Demonstrated strong attention to detail

• Utilized problem-solving skills effectively