Wood Group Interview Questions, Process, and Tips

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.

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 receivabl

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...read more

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 in...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 co...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

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

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, ...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 exa...read more

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 earned by a company from its sales of goods or services.

• Profit is the amount of money that remains after all expenses, such as operating costs, taxes, and interest, have been subtracted from reven...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 ...read more

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 ...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

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 p

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 ...read more

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 acc...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