SMR Automotive Systems India Interview Questions and Answers

Payroll entries include recording salaries, wages, taxes, and benefits for employees.

• Recording gross wages for employees

• Deducting taxes such as income tax and social security

• Adding employer contributions to benefits like healthcare or retirement plans

• Accruing vacation or sick leave balances

• Adjusting for any bonuses or commissions earned

The entry for purchase from Vendor before receipt of bill is a debit to Inventory and a credit to Accounts Payable.

• Debit Inventory account for the cost of the purchase

• Credit Accounts Payable to show the amount owed to the vendor

• Once the bill is received, adjust the entry accordingly

P2P process in accounts refers to the procure-to-pay process, which involves purchasing goods or services and paying for them.

• P2P process starts with the requisition of goods or services needed by a company.

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

• Goods or services are received and an invoice is generated by the supplier.

• The invoice is matched with the purchase order and goods receipt, and then approved for payment.

• Payment is made to the supplier, c...read more

Entries for Sales and Receivables involve recording sales transactions and tracking amounts owed by customers.

• Record sales revenue when goods or services are delivered to customers

• Track accounts receivable to monitor amounts owed by customers

• Reconcile sales and receivables to ensure accuracy of financial records

Depreciation is the decrease in value of an asset over time. Amortization is the gradual reduction of an intangible asset's value. Deferred tax is a liability or asset that arises due to temporary differences between accounting and tax rules.

• Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Amortization is the allocation of the cost of an intangible asset over its useful life.

• Deferred tax is a result of temporary differences between taxable i...read more

A suspense account is a temporary holding account used to temporarily hold funds or transactions until they can be properly classified or allocated.

• A suspense account is typically used when there is uncertainty or a discrepancy in the classification or allocation of funds or transactions.

• It is a temporary solution to hold funds or transactions until they can be properly resolved.

• Suspense accounts are commonly used in accounting and finance to ensure accurate record-keeping an...read more