20+ Interview Questions and Answers

Unbilled data or accrual data refers to revenue that has been earned but not yet billed to the customer.

• Unbilled data is a common term used in accounting to describe revenue that has been recognized but not yet invoiced.

• Accrual data refers to expenses that have been incurred but not yet recorded in the accounting system.

• Clearing unbilled data is important to ensure accurate financial reporting and to prevent revenue leakage.

• Unbilled data can lead to discrepancies between repo...read more

A credit note is a document issued by a seller to a buyer, indicating that a certain amount has been credited back to the buyer's account.

• Credit notes are used to correct errors in invoices.

• They are also used to adjust the amount owed by a customer.

• Credit notes can be issued for returned goods or cancelled services.

• They can also be used to give a discount or refund to a customer.

• Credit notes are important for maintaining accurate financial records.

Payment term is the time period within which a customer is required to pay for goods or services. Credit period is the time period for which a customer is allowed to delay payment.

• Payment term is agreed upon by the seller and buyer during a transaction.

• It can be expressed in days, weeks, or months.

• For example, a payment term of 30 days means the customer must pay within 30 days of receiving the invoice.

• Credit period is the time period during which the customer can delay payme...read more

Cash forecast is a projection of future cash inflows and outflows. Golden rules of accounting are basic principles to maintain accurate financial records.

• Cash forecast helps in managing cash flow and planning for future expenses.

• Golden rules of accounting are: debit the receiver, credit the giver; debit what comes in, credit what goes out; and debit expenses and losses, credit income and gains.

• These rules ensure accuracy and consistency in financial records.

• For example, if a ...read more

The AR Register/Invoice Register is a detailed list of all accounts receivable or invoices issued by a company.

• It includes information such as invoice number, date, amount, customer name, and payment status.

• It helps track outstanding payments and monitor the overall financial health of the company.

• AR Register is used by billing accountants to reconcile payments and ensure accuracy in financial records.

Credit and Debit Memos/Notes are documents used to adjust accounts receivable or payable balances.

• Credit Memos/Notes are used to decrease accounts receivable or increase accounts payable.

• Debit Memos/Notes are used to increase accounts receivable or decrease accounts payable.

• They are typically issued to correct errors, apply discounts, or resolve disputes.

• Examples include issuing a credit memo for a returned product or a debit memo for a billing error.

Deferred revenue is income received in advance for goods or services that have not yet been provided, while accrual revenue is income earned but not yet received.

• Deferred revenue is recorded as a liability until the goods or services are delivered.

• Accrual revenue is recorded as an asset until the payment is received.

• Examples of deferred revenue include magazine subscriptions or annual maintenance contracts.

• Examples of accrual revenue include services provided but not yet invo...read more

Milestone and RFP Billing are methods used in project-based billing to track progress and bill clients accordingly.

• Milestone Billing involves billing clients based on project milestones achieved

• RFP (Request for Proposal) Billing involves billing clients based on the terms outlined in the proposal submitted for the project

• Both methods help ensure accurate billing and payment for services rendered

Accrual data refers to revenue or expenses that have been earned or incurred, but have not yet been received or paid.

• Accrual data is used to match revenue and expenses to the time period in which they were incurred, rather than when they are actually received or paid.

• It helps in providing a more accurate representation of a company's financial position and performance.

• Examples of accrual data include accounts receivable, accounts payable, and accrued expenses.

Revenue is the total income generated by a business through its normal business operations, while profit is the amount of money left over after all expenses have been deducted from revenue.

• Revenue is the total amount of money a company receives from its customers for providing goods or services.

• Profit is the amount of money a company has left over after subtracting all expenses, including operating costs, taxes, and interest, from its revenue.

• Revenue can be calculated by mult...read more

Journal entries are accounting records that show the financial transactions of a business.

• Journal entries are used to record transactions in the general ledger.

• They include the date of the transaction, accounts affected, and amounts debited or credited.

• Each journal entry consists of a debit entry and a credit entry, following the double-entry accounting system.

• Examples of journal entries include recording sales revenue, expenses, and asset purchases.

Billing types refer to different categories or methods used for billing customers for products or services.

• Billing types can include hourly billing, flat-rate billing, milestone billing, etc.

• Each billing type has its own set of rules and criteria for invoicing.

• For example, a software development project may use milestone billing where payments are made upon completion of specific project milestones.

Sales on credit refer to goods or services sold to customers with an agreement to pay at a later date.

• Sales on credit involve extending credit to customers, allowing them to purchase goods or services without immediate payment.

• The terms of the credit agreement, such as payment due date and interest rates, are typically outlined in a sales invoice or contract.

• Accounts receivable increases when sales are made on credit, as customers owe the company money until they make payment...read more

A cash forecast is a financial tool used to predict the future cash inflows and outflows of a business.

• A cash forecast helps businesses plan for upcoming expenses and ensure they have enough cash on hand to cover them.

• It involves analyzing historical cash flow data, current financial statements, and future business plans to estimate cash flow.

• Cash forecasts are typically created on a monthly or quarterly basis and can be adjusted as new information becomes available.

• Examples ...read more

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

• EBITDA is calculated by adding back interest, taxes, depreciation, and amortization to net income.

• It is used to analyze and compare profitability between companies and industries.

• EBITDA helps in assessing a company's ability to generate cash flow from its operations.

• Investors often use EBITDA to evaluate a company's financial health and perfo...read more

Unbilled refers to services or products that have been provided but not yet invoiced to the customer.

• Unbilled items should be reviewed regularly to ensure timely invoicing.

• It is important to investigate the reasons for items being unbilled, such as missing documentation or approval.

• Unbilled amounts should be tracked separately from billed amounts to avoid revenue recognition issues.

• Examples of unbilled items include completed projects awaiting final approval, services provide...read more

DSO stands for Days Sales Outstanding, a financial metric used to measure the average number of days it takes a company to collect revenue after a sale.

• DSO is calculated by dividing accounts receivable by total credit sales and multiplying by the number of days in the period.

• A lower DSO indicates that a company is collecting payments more quickly, while a higher DSO may suggest potential issues with collections.

• For example, if a company has $100,000 in accounts receivable and...read more

Deep accounting principles involve understanding complex financial transactions, regulations, and reporting standards.

• Understanding GAAP (Generally Accepted Accounting Principles)

• Knowledge of financial statement analysis

• Familiarity with tax laws and regulations

• Ability to interpret complex financial data

• Experience with auditing procedures

Accounts Payable is mentioned under Current Liabilities in the Balance Sheet.

• Accounts Payable represents the amount owed by a company to its suppliers or vendors for goods or services received but not yet paid for.

• It is listed under Current Liabilities as it is expected to be paid within a year.

• Accounts Payable is an important metric for analyzing a company's liquidity and cash flow.

• Example: If a company has a high accounts payable balance, it may indicate that they are takin...read more

Intercompany refers to transactions between two or more companies within the same group, while intracompany refers to transactions within the same company.

• Intercompany transactions involve multiple legal entities within a corporate group.

• Intracompany transactions occur within a single legal entity.

• Intercompany transactions may involve transfer pricing and elimination entries.

• Intracompany transactions do not require transfer pricing or elimination entries.

• Examples of intercomp...read more

Accrued income refers to the income that has been earned but not yet received.

• It is recorded as a current asset in the balance sheet

• It is recognized as revenue in the income statement

• Examples include interest income, rent income, and dividend income

• It is usually recorded using the accrual accounting method

Month end activity refers to the tasks and processes that are completed at the end of each month to close out financial records.

• Reconciling bank accounts

• Preparing financial statements

• Posting adjusting journal entries

• Reviewing accounts receivable and payable

• Closing out temporary accounts

• Performing inventory counts

• Preparing tax filings

• Analyzing financial performance

Accounts Payable Cycle is the process of managing and paying a company's bills and invoices.

• It involves receiving invoices from vendors

• Verifying the accuracy of the invoices

• Recording the invoices in the accounting system

• Approving the invoices for payment

• Issuing payment to the vendors

• Reconciling vendor statements

• The cycle starts with the purchase order and ends with the payment to the vendor

• The goal is to ensure timely and accurate payment to vendors while maintaining good rel...read more

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

• It is a liability account in the company's balance sheet.

• It includes invoices that have been received but not yet paid.

• It is important to manage accounts payable to maintain good relationships with vendors and avoid late fees or penalties.

• Examples of accounts payable include rent, utilities, and inventory purchases.

Wellhead platform arrangements and requirements involve the design and layout of structures for drilling and production operations.

• Wellhead platforms are structures located above the wellhead to support drilling and production equipment.

• Arrangements must consider factors such as well spacing, equipment layout, and safety regulations.

• Requirements may include weight capacity, access for maintenance, and environmental considerations.

• Examples of wellhead platform arrangements inc...read more

Document Controller procedure involves managing, organizing, and controlling documents within a company or organization.

• Establishing document control procedures and policies

• Maintaining document registers and logs

• Ensuring all documents are properly labeled and stored

• Implementing document version control

• Coordinating document reviews and approvals

• Training staff on document control procedures

• Auditing document control processes for compliance