Varun Motors Executive Accountant Interview Questions and Answers

A proforma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.

• It is not a legally binding document

• It includes details such as quantity, description, and price of goods

• It is used to provide an estimate of the cost of goods to the buyer

• It is often used in international trade to comply with customs regulations

• It can be used to secure financing or payment from a bank

Depreciation on fixed assets is calculated based on the asset's useful life and salvage value.

• Depreciation is the reduction in value of an asset over time due to wear and tear, obsolescence, or other factors.

• The most common method of calculating depreciation is the straight-line method, which spreads the cost of the asset evenly over its useful life.

• Other methods include the declining balance method and the sum-of-the-...read more

Revenue is recognised when it is earned and measurable.

• Revenue is recognised when the goods or services are delivered to the customer.

• Revenue is measurable when the amount of revenue can be reliably determined.

• Revenue recognition follows the accounting standards such as GAAP or IFRS.

• Revenue can be recognised at a point in time or over a period of time.

• Examples of revenue recognition methods include completed contract m...read more