Windamere Projects Interview Questions and Answers

The three main types of accounting are financial accounting, management accounting, and tax accounting.

• Financial accounting focuses on recording and reporting financial transactions of a business.

• Management accounting involves providing information to help with internal decision-making and planning.

• Tax accounting deals with tax-related matters, such as preparing tax returns and ensuring compliance with tax laws.

Procure to pay is the process of obtaining and paying for goods and services from suppliers.

• Involves requesting goods/services, receiving them, approving invoices, and making payments

• Includes steps like purchase requisition, purchase order, goods receipt, invoice verification, and payment processing

• Helps streamline the purchasing process and ensure timely payments to suppliers

Working capital is the difference between a company's current assets and current liabilities.

• Working capital is a measure of a company's operational efficiency and short-term financial health.

• It shows how much liquid assets a company has available to meet its short-term obligations.

• Formula: Working Capital = Current Assets - Current Liabilities

• Examples of current assets: cash, accounts receivable, inventory

• Examples of current liabilities: accounts payable, short-term debt

Accounting process refers to the series of steps taken to record, analyze, and report financial transactions of a business.

• The accounting process starts with identifying and recording financial transactions.

• Transactions are then classified into different accounts based on their nature (e.g. assets, liabilities, equity, revenue, expenses).

• The recorded transactions are then summarized and analyzed to prepare financial statements such as the balance sheet, income statement, and ...read more

Accounts Payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts Payable is a liability on the balance sheet

• It represents the company's obligation to pay off short-term debts to creditors

• It includes invoices from suppliers, utility bills, and other expenses

• Accounts Payable is typically recorded when goods or services are received, not when they are paid for